We hereby inform the business community and other interested parties that recently has come into force Decree n º. 31/2015, 31 December, which approves the Regulations of the New Mining Law (Law nº. 20/2014, 18 August).

The New Mining Law Regulations does not introduce major amendments to the mining exploration regime, however it brings new important elements. Below the highlights:

  • In the scope of the organization and functioning of the Mining Cadastre, the Mining Law Regulations seeks to strengthen the need for more coordina-tion and interaction with the public;
  • Introduces the need of registration of the mining operators hired by the mining title holder for the performance of mining operations at the National Directorate of Geology and Mines;
  • The Mining Cadastre will be under the aegis of the National Institute of Mines, which has the competence to process the requests for acquisition of mining titles;
  • Clarifies the procedures and reaffirms the simplifying of procedures for the processing of requests for mining titles, by accepting the submitting of certain documents in electronic format, such as mining exploration reports;
  • Establishes specific deadlines for the practice of certain acts related with the processing and managing of mining titles, for the Government as well as for the applicant, such as 48 hours for the applicant to proceed with the publication of notices, 60 days for the revocation of mining titles when there has been no activity for 24 or 48 months, whether we are before an Exploration License or Mining Concession, and 180 days for the Ministry to issue the decision regarding the request of transfer of rights in mining projects;
  • Reduce the percentage of the amount necessary for the provision of guarantees of performance, which varies between 10% to 20% of the investment value, for the interval between 1% to 2% against the same investment value;
  • Establishes the need for public tender from the mining concessionaires, for the acquisition of goods and services, in the value above 15.000.000,00 Mts (fifteen million Meticais) (approximately USD 300.000 at the rate of 50MT/USD1);
  • The service providers should associate themselves to Mozambican entities in percentages and terms as negotiated by the parties;
  • The Tax Quit Claim is now a requisite for the request for acquisition of mining titles with exception of the Mining Pass;
  • Reduction of the area for granting of Exploration Licenses from 25.000 to19.998 hectares;
  • Extension of the deadline for the presentation of certain annual activity reports, under the mining titles of 31 January to 28 February of each year;
  • Demand of the obligation to comply with the minimum percentage of 60% when it comes to the execution of the mining activities referred to in the approved work programs;
  • Reduction of the pre-notice period for the total or partial relinquishment of the mining concession area from 180 days to 90 days;
  • The mining findings should be communicated to the Ministry through the National Institute of Mines, within 24 hours after discovery;
  • The treatment licenses, introduced by the New Mining Law n.º 20/2014, 18 August, when for big scale treatment, require an environmental impact study and a technical economic viability study, which is independent of the mining concession.