HomeCopperMozambique mining licenses: Use or loose says director of mines

Mozambique mining licenses: Use or loose says director of mines

Mozambique Earlier this month it was reported that Mozambique’s National Director of Mines, Geraldo Valoi, had threatened to revoke licenses for idle mining concessions.

This is a strategy familiar to many, including South Africa. Owners not actively exploring or developing their concessions can loose them. Mozambique mining licenses are now headed in the same direction – ‘use it or loose it’.

According to international law firm ENS, this was revealed in a meeting with license holders in the gold and copper-rich Manica province in central Mozambique.

Valoi also condemned artisanal miners for illegally exploiting unused concessions and employing methods that cause pollution and endanger health ENS reveals in its weekly ‘Africa business in brief’ newsletter.

Although he did not specify the proprietors of the unused concessions, “who include several international investors”, Valoi did state that the underutilisation of mineral resources “harmed national development”, signalling the move is aligned with the government’s new five-year plan presented on 8 April.

According to ENS, although the plan has provisions to aid business by simplifying procedures, the economic targets provided seem ambitious. These include an increase in government revenues from 27.5% of GDP to 32% by 2019, and pledges of infrastructure development tied to natural resources amid low prices relative to recent years for the country’s major exports including coal, natural gas, and gold.

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