Four incentives have been introduced by the Angolan Ministry of Mineral Resources to support beneficiation manufacturing in the country. The process works towards rewarding manufacturers and miners who take extra measures to treat materials further in their production chains. The four measures that have been introduced are as follows:
1. A 20% cut of the run-of-mine production is to be exclusively sold to beneficiation manufacturers. International customers will not have access to this 20% cut, except if beneficiation manufacturers do not meet sufficient technical or financial capabilities.
2. Introduction of a differentiated tax regime for the 20% cut exclusively sold to beneficiation manufacturers:
- 0.253% tax for the goods that are processed locally, out of the 20% run-of-mine cut exclusively sold to beneficiation manufacturers.
- 3.553% tax for the goods that are subsequently exported, out of the 20% run-of-mine cut exclusively sold to beneficiation manufacturers.
- 8.553% tax on the remaining 80% of the run-of-mine production available for export to international customers. Local manufacturers will be subject to the above-mentioned 0.253% and 3.553% tax rates when processing some of the remaining 80% of the run-of-mine production in Angola.
3. Obligation for beneficiation factories to locally process the stones deemed eligible according to the criteria established by ENDIAMA and SODIAM, the remaining non-eligible part of the run-of-mine production can be exported. The rough diamond qualities that are eligible for beneficiation manufacturing are the following:
- For 2ct and up: Z1, Z2, Z3, Z4, Spotted, MB 1, MB 2, MB 3, MB 4 with D to M colours
- For 3-6grs: Z1, Z2, Z3, Z4, MB 1, MB 2, MB 3 with D to M colours
- For sieves +11 and +9: Z1, Z2, MB 1, MB 2 with D to M colours
4. A new financial mechanism to mitigate the impact of the delay in VAT reimbursement associated with purchases will be applicable for beneficiation manufacturing operations upon certain requirements.
The implementation and monitoring of these incentives will be conducted by a technical group made of ENDIAMA and SODIAM.