2015 Minerals Yearbook ANGOLA AND NAMBIA [ADVANCE RELEASE] U.S. Department of the Interior May 2019 U.S. Geological Survey The Mineral Industries of Angola and Namibia By Yadira Soto-Viruet ANGOLA Structure of the Mineral Industry Angola’s mineral sector, in particular the diamond and The Government, through Empresa Nacional de Diamantes petroleum industries, remained a significant contributor to the de Angola E.P. (ENDIAMA), held a majority interest in most country’s economy in 2015. Angola was Africa’s second-ranked diamond-mining operations in the country. The Government’s petroleum producer after Nigeria, accounting for about 22% of interest in other nonfuel and fuel mineral mining ventures varied Africa’s total petroleum output in 2015 and 2% of total world from one operation to another. Table 2 is a list of major mineral petroleum output. In 2015, the country’s petroleum reserves industry facilities. were estimated to be 12.7 billion barrels, which represented Mineral Trade 9.8% of Africa’s total proven petroleum reserves. The country also accounted for 7% of the world’s total rough diamond output According to IMF preliminary data, in 2015, the total and about 9% of the world’s total diamond production, by value. value of Angola’s exports was $33.2 billion compared with Diamond mining in the country was both from primary $59.2 billion in 2014, of which the petroleum sector accounted (kimberlite) and secondary (alluvial) deposits located in the for about 95%, and the diamond sector, about 3%. Angola’s Provinces of Lunda Norte and Lunda Sul. Other mineral exports to the United States were valued at $2.8 billion in 2015 commodities produced in the country included cement, granite, compared with $5.7 billion in 2014. About 97% of these gravel, gypsum, fuller’s earth, lime, limestone, marble, quartz, exports were crude petroleum and fuel oil, which were valued salt, sand, and crushed stone. Clinker and liquefied petroleum at $2.5 billion and $219 million, respectively. Other exports gas were also produced, and gold may have been produced at an to the United States included gem-quality diamond valued at artisanal or small-scale level, but available information was $66 million and petroleum products valued at $3.1 million. inadequate to make reliable estimates of output (tables 1, 2; Imports from the United States were valued at $1.2 billion; these BP p.l.c., 2016, p. 6, 8; Kimberley Process Rough Diamond included nearly $268 million in drilling and oilfield equipment, Statistics, 2016). about $33 million in iron and steel products, about $10 million in excavating machinery, nearly $3 million in iron and steel mill Minerals in the National Economy products, and about $1 million in petroleum products (U.S. Census Angola’s economy depends heavily on crude petroleum Bureau, 2016a, b; International Monetary Fund, 2017, p. 33). production. Production of crude petroleum in 2015 increased Commodity Review by about 7%; however, lower international oil prices resulted in a decrease of the country’s oil revenues and exports. The Industrial Minerals International Monetary Fund (IMF) reported that the country’s real gross domestic product (GDP) increased by 3% in 2015 Diamond.―Rough diamond production as reported by the compared with an increase of 4.8% in 2014. Preliminary data Kimberley Process Certification Scheme (KPCS) increased reported by the IMF indicated that, in 2015, Government by nearly 3% to 9.0 million carats in 2015 from 8.8 million revenues decreased by about 24% compared with those of 2014; carats in 2014, and the value of Angola’s diamond decreased petroleum accounted for about 90% of these revenues. The by 13% to nearly $131 per carat from about $150 per carat nonfuel mineral sector is regulated by Mining Law No. 31/11 in 2014. Sociedade Mineira Do Lulo, which was owned by of September 23, 2011, and the mineral fuels sector by law Lucapa Diamond Co. Ltd. of Australia (40% share) in joint No. 11/2004 of November 12, 2004 (table 1; International venture with ENDIAMA (32%) and Rosas e Petalas S.A. (28%), Monetary Fund, 2017, p. 28, 29). began alluvial mining operations at the Lulo diamond project in January. The project is located 150 kilometers (km) east of Production Luanda, Lunda Norte Province, and about 150 km from the In 2015, production of most mineral commodities, with the Catoca Mine, which was Angola’s leading diamond-producing exception of diamond, granite, and petroleum, was estimated. mine. During the year, Lulo produced 8,394 carats. The joint Salt output increased by an estimated 25% to 50,000 metric venture expected to ramp up production in 2016 and to provide tons (t) and cement output increased by an estimated 10% to an updated Joint Ore Reserves Committee (JORC)-compliant 5.5 million metric tons (Mt). Gold was reportedly mined by estimate of inferred diamond resources for Lulo in 2017. The artisanal miners in Cabinda Province; however, available joint venture also planned to continue with its Lulo kimberlite information was inadequate to make reliable estimates of output. exploration program in 2016 (table 2; Kimberley Process Rough Data on mineral production are in table 1. Diamond Statistics, 2015, 2016; Lucapa Diamond Co. Ltd., 2016, p. 3–6; 2017a, p. 6; 2017b, p. 7). South Africa-based Trans Hex Group Ltd. was the operator and held 33% interest in the Somiluana Mine, ANGOLA AND NAMIBIA—2015 [ADVANCE RELEASE] 2.1 which is located about 1,000 km northeast of Luanda cubic meters of natural gas and up to 63,000 barrels of natural in Lunda Norte Province. For the fiscal year from gas liquids. The company expected to complete modifications April 1, 2014, to March 31, 2015, diamond production at and capacity and reliability enhancements at the plant in early Somiluana increased by 31% to 94,483 carats compared 2016 and its first LNG cargo in the second quarter of 2016. with 72,041 carats during the fiscal year from April 1, 2013, Chevron also held 38.1% interest in the Congo River Canyon to March 31, 2014. The company attributed the increase Crossing Pipeline, which was a 140-km-long offshore pipeline in production to a 17% increase in the average grade and about to be routed beneath a submarine canyon formed by the Congo a 12% increase in the amount of gravel treated. During the River and designed to transport up to 250 million cubic feet year, the company commissioned its third washing plant and per day of natural gas from Block 0 and 14 to the ALNG continued with geologic studies to assess the expansion of plant. Block 0 (Chevron, 39.2%) was adjacent to the Cabinda operations into more distant areas of the concession. The coastline and Block 14 (Chevron, 31%) was located west of Somiluana Mine was a joint venture among ENDIAMA, which Block 0. During the year, the two blocks produced an average of owned 39% interest, Trans Hex, 33%, and domestic private 110,000 barrels per day (bbl/d) of natural gas liquids and about investors, 28% (Trans Hex Group Ltd., 2016, p. 7, 22–23, 29, 73). 1.6 million cubic meters of natural gas. Chevron completed In October, ENDIAMA, in joint venture with ALROSA the drilling of the well intersection and the installation of the S.A. of Russia, announced the discovery of the Luaxe pipeline in mid-2015 and planned the startup of the pipeline in kimberlite deposit, which is located in Lunda Sul Province. The 2016 (Chevron Corp., 2016, p. 12, 20). joint-venture partners planned to invest about $1.5 billion to In November, Chevron began oil and gas operations at develop a mine. Once in full operation, the mine was expected the Lianzi Unitization Zone (Lianzi field), located in an to create more than 2,000 jobs. The joint venture also announced area shared equally by Angola and the Republic of Congo that an exploration program at Luaxe was expected to be [Congo (Brazzaville)]. Chevron was the operator and held 31% completed between late 2017 and early 2018. The Luaxe Mine interest in the Lianzi field. The Lianzi field, which included would have the capacity to produce more than 8 million carats four producing wells and three water-injection wells, would per year (Empresa Nacional de Diamantes de Angola E.P. , 2015). transport crude petroleum from the field to the Benguela- Phosphate Rock.―Minbos Resources Ltd. of Australia Belize and Lobito-Tomboco platforms at Block 14 and was (50%) in joint venture with Angola-based Petril Phosphates Ltd. expected to produce an average of 40,000 bbl/d of crude (50%) continued with plans to develop the Cabinda phosphate petroleum. The Lianzi field was jointly owned by a consortium project, which included the Cacata development project and of companies that included Total S.A. of France, 26.75%; five advanced exploration projects (the Cambota, the Chibuete, Angola Block 14 B.V., 10%; Eni S.p.A. of Italy, 10%; Sociedade the Chivovo, the Mongo Tando, and the Ueca deposits). In Nacional de Combustíveis de Angola, E.P. (Sonangol), 2015, Minbos Resources reported that the Ministry of Mines 10%; Société Nationale des Petroles du Congo (SNPC) of and Geology had issued two new licenses for the project (one Congo (Brazzaville), 7.5%; and Galp Energía, SGPS, S.A. of for the Cacata deposit and one for the Cambota, the Chibuete, Portugal, 4.5% (Chevron Corp., 2015, 2017). the Chivovo, the Mongo Tando, and the Ueca deposits). Both Chevron also continued with the development of the licenses were issued for a period of 5 years and were renewable Mafumeira Sul project, which included a central processing for an additional 2 years.