Rio Tinto Strengthens Mining Ties with Angola through Second Investment Contract
On January 17, 2024, Rio Tinto, the prominent English-Australian mining company, formalized a significant mining investment contract with the Angolan Ministry of Mineral Resources, Oil, and Gas in Luanda.
The lucrative $5.7 million USD deal encompasses a 35-year exploratory license for the Moxico Concession, spanning an extensive 9,987 square kilometers (3,856 square miles).
Rio Tinto’s exploration efforts will focus on uncovering base metals, including copper, zinc, cobalt, and titanium, according to the company’s official statement.
The contractual agreement initiates a dedicated five-year prospecting phase, with the potential for a two-year extension. Subsequent to successful prospecting, Rio Tinto is granted an additional 35 years for exploration within the Moxico Concession.
This strategic move marks Rio Tinto’s second major investment in Angolan mining as the nation actively seeks to diversify its economic reliance on oil exports.
In 2021, the mining giant signed its initial agreement with Angola, targeting kimberlite and diamond prospecting in Chiri of the Lunda-Norte province.
The four-year prospecting phase, extendable by an additional four years, precedes a 35-year exploration permit. The agreement maintained a 75% stake for Rio Tinto and a 25% share for Endiama, the Angolan state-owned diamond company.
The development of the Lobito Corridor has played a pivotal role in attracting mining investments to Angola. Streamlined logistics for transporting fuel and equipment from port to mine have substantially bolstered production forecasts from 2023 to 2024.
In the diamond sector alone, Endiama’s chairman, Jose Ganga Junior, anticipates a significant rise in production, projecting an increase from 9.7 million carats in 2023 to 14.6 million carats in 2024.
Notably, the mining sector’s positive trajectory is not exclusive to Rio Tinto, as De Beers also inked prospection and exploration agreements with Angola in 2022.
USGA estimates suggest that a substantial 60% of Angola’s kimberlite deposits remain unexplored, signifying vast untapped potential for future exploration and growth in the country’s mining landscape.
SOURCE:angolanminingoilandgas.com
