Anglo American has its eye on Angola

Commodities giant Anglo American (LON: AAL) has applied for exploration concessions for base metals in Angola.

“We believe there is geological potential in Angola and have noted with interest the recent changes, including the release of a new Mining Code and the availability of the new country-wide, geophysical data,” James Wyatt-Tilby, Anglo’s group head of corporate communications, confirmed in an email to The Northern Miner.

The company declined further comment about its decision or the current political situation in Angola.

The African state elected its first new president in 38 years in September 2017.

Joao Lourenco, a retired general, fought in the independence struggle against Portugal and later against the National Union for Total Independence of Angola during the country’s bloody civil war, which lasted for a quarter of a century.

Shortly after taking power, Lourenco fired a number of security chiefs close to his predecessor, as well as the leaders of several state-run companies, the BBC has reported.

Angola is one of Africa’s major oil producers and a significant diamond producer. The government also says the country has potential for copper, iron ore and gold.

According to Reuters, Anglo American is the first major mining company to request exploration permits, since Lourenco “vowed to open up the sector, and encouraged foreign investment.”

Angola is bordered by Namibia to the south, the Democratic Republic of the Congo to the north, Zambia to the east, and the Atlantic Ocean to the west.