The final draft of Mozambique’s New Mining Law is expected to be signed into law during the current sitting of Parliament, pushing the much anticipated Laws publishing date to May 2014.  In the current sitting of parliament, it is expected, the New Mining Law will come into effect and revoke the previous Law no. 14/2002 of 26th June 2002 (amended by means of Law no. 11/2007).

The New Mining Laws implications for mining and resource companies and ancillary industries involved in this sector and country are vast.  The major sections of the New Mining Law focus on key issues relating to New Mining Titles including mining treatment and mining processing, New Timing requirements for exploration and prospecting and mining concessions licenses, Restrictions on the transfer of mining rights and titles, the New Tax regime, and the effect on existing rights. Additionally provisions have been put in place for the establishment of a Local Content policy that will see further acceleration through 2014.
The new mining legislation is intended to improve some standards included in the current Mining Law, thus becoming more appropriate for the current state of surveying and exploration of mining resources, specifically taxation of the transfer of licenses between national and foreign companies carried out abroad. 

The law will also see a new timeline for exploration and prospecting and the associated licenses. Since the drafting of the new mining law began, the Minister of Minerals in Mozambique has been quoted as saying “The state should have a percentage of participation in consortia or companies that have mining concessions to explore mineral resources that are considered strategic,” Bias said. Resource-rich African nations, including Namibia, Zimbabwe and Guinea, are planning to revise mineral laws to take advantage of commodity prices which have surged on the global economic recovery.

The changes will affect all mining activities, including coal, gold, uranium and all other minerals. Widely anticipated as having little to no impact on the market in Mozambique, some of the changes have radical and far reaching consequences for all companies invested into the mining and resource space. The New Mining Law which is currently in front of parliament will be passed ahead of the new auction for coal mining concessions taking place in June. The concessions will be in the provinces of Tete and Niassa. Mozambique is rich in mineral resources, including coal, gold, mineral sands, rare earths and semi-precious stones.  Though it is fast becoming a destination of significant mining investment, geological mapping is far from complete, and exploration is still in its early stages. 

A 1 day market briefing will take place in Johannesburg on the 8 July organized by AIE organization. Further details on participating in the market briefing can be accessed via www.africaninfex.com or call: 081 777 0028