Decree approving Regulations of the New Mining Law comes into force

Decree no. 31/2015, dated Dec. 31, which signs in to law the Regulations of the New Mining Law (Law no. 20/2014, Aug. 18), has recently come into force.
The New Mining Law Regulations does not introduce major amendments to the mining exploration system but nevertheless bring new important elements.
Below are 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 coordination and interaction with the public;
  • the change introduces the need for the registration of 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 the acquisition of mining titles;
  • clarifies the procedures and reaffirms the simplifying of procedures for the processing of requests for mining titles;
  • establishes specific deadlines for the practice of certain acts related to the processing and managing of mining titles;
  • reduces the percentage of the amount necessary for the provision of guarantees of performance, which varies from 10-20 percent of the investment value, for the interval between 1-2 percent against the same investment value;
  • establishes the need for a public tender from the mining concessionaires for the acquisition of goods and services of the value above 15 million Meticais;
  • the service providers should associate themselves with Mozambican entities in percentages and terms as negotiated by the parties;
  • the Tax Quit Claim is now a requisite for a request to acquire mining titles, with the exception of the Mining Pass;
  • a reduction of the area for granting Exploration Licenses from 25,000 to 19,998 hectares;
  • extension of the deadline for the presentation of certain annual activity reports under the mining titles from Jan. 31 to Feb. 28 of each year;
  • obligation to comply with the minimum of 60 percent 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;
  • mining discoveries should be communicated to the ministry through the National Institute of Mines within 24 hours after the discovery.

(Source: SAL & Caldeira Advogados, Lda)