TELF AG analyzes Angola’s emerging position in the global raw materials scenario 

A protagonist of the future 

For several years, the Angolan economy has been in a transformation phase that, according to some recent analyses, could allow it to quickly become one of the most interesting players in the raw materials industry. This is also due to its well-known geological wealth and the potential linked to the still unexplored areas. 

In addition to being one of the world’s largest diamond producers, in fact, for some years, the Angolan government has been trying to make clear maneuvers towards the goal of diversification in an attempt to add to its resource portfolio all the minerals linked in some way to the energy transition. This desire, with newfound political stability and a certain ferment in infrastructural development, has also attracted the attention of other nations, which, in recent years, have continued to make strategic agreements with Angola for cooperation in the field of raw materials. 

Angola’s geological reserves include gold, platinum, nickel, chromium, and iron. Still, the most interesting data concerns the unexplored territories. According to some analysts, the unexplored portions of the Angolan territory would exceed half of its total surface area, reaching 60% of Angola’s lands. In these unexplored areas, it has been hypothesized that there could also be ample resources of rare earths, copper, lithium, cobalt, and manganese, all resources involved in the production processes related to renewable energy technologies.  

In addition to making ambitious attempts to improve internal diamond processing capabilities, Angola’s gaze seems to be constantly turned to the future, with particular attention to the production of some of the resources most in demand by modern industry. Among these are undoubtedly rare earths, of which Angola hopes to begin production within the next five years (in particular, neodymium, praseodymium, and niobium). One of the most interesting projects, from this point of view, is the Longonjo mine, which could potentially become the first large-scale African mine to produce and refine rare earths. 

In Angola, moreover, the sector related to strategic minerals is constantly supported by the government, which continues in its attempts to reform it (also through a substantial reduction of the link between the State and this sector), and introducing also tax incentives to encourage exploration. 

International cooperation 

Among the countries that are undoubtedly intensifying their ties with the African country are certainly the United Arab Emirates, which for a long time has established a fruitful dialogue with Angola also focused on energy, technology, and infrastructure, and for some time also on diamonds and other geological resources linked to the ongoing energy transition. In the case of the United Arab Emirates, as stated in a recent analysis, the geological riches of Angola could represent one of the most important elements in composing a very ambitious strategic puzzle, which should contribute to the transformation of the UAE into a sort of connective hub between the Middle East, Asia, and Africa. 

The link between Angola and the United Arab Emirates can also be easily measured by the data relating to diamond imports, which have been exported in large quantities to Abu Dhabi in recent years. The interest in Angola is further increased by the great logistical potential contained in the Lobito railway corridor, already functioning between Angola and the Democratic Republic of Congo, which, according to many observers, is destined to become one of the main export routes for minerals from these countries. Over the years, the African nation has also attracted the interest of other international players such as Japan, the European Union, and the United States. Through the United States Geological Survey, the latter will help Angola map its geological resources.