A draft revision of the Mining Law reveals that the State will now take at least a 15% stake in mining projects, while also banning the export of unprocessed mineral products. It also foresees the creation of designated areas for artisanal mining.
According to Lusa, the new revision will be debated in Parliament on Thursday, May 7. The Government acknowledges that after ten years of implementation, the current law contains “some gaps that require strengthening the State’s sovereignty over mineral resources” and improving its ability to fully capture revenues from their exploitation.
Broadly, the amendments include reserving exclusive rights over strategic minerals for the National Mining Company (ENM) and strengthening State participation across exploration, research, extraction, processing, and commercialization, as well as in inspection, monitoring, and traceability of mining activities.
The legal framework also provides for exploration and prospecting licenses valid for two to five years (renewable), mining concessions of up to 25 years (extendable), allocation of rights through public tender or auction, incentives for in-country mineral processing, and support for national companies in the value chain, including reserved rights for construction materials and trade.
“In my inauguration as Head of State on January 15, 2025, I made an unequivocal commitment to the Mozambican people to restructure the mining, oil, and gas sectors, with the central goal of turning the country’s vast natural resources into effective and lasting engines of economic and social development,” President Daniel Chapo states in the letter accompanying the proposal.
“That commitment reflects a clear political direction: subsoil resources must generate wealth that remains in Mozambique, creating jobs, empowering national companies, and financing essential public services,” Chapo adds, noting that the current political and economic context makes these reforms urgent.
The proposal states that the measures aim to “strengthen State sovereignty over mineral resources” and ensure State participation through ENM, which will hold a minimum 15% stake, potentially higher.
The law also seeks to ensure greater benefits for local communities through their involvement in mining activities and access to revenues, including the creation of artisanal mining zones and two new licenses for small-scale and artisanal mining.
It further mandates that 10% of mining revenues be allocated to local development in project areas, managed through a dedicated fund, and requires the Mining Regulatory Authority to establish a monitoring unit to ensure that only Mozambican entities, or partnerships with foreign firms, provide services and goods to mining companies.
Source: Diário Económico
