Introduction
Chris Stevens 00:05
Good afternoon, everybody. This is Chris Stevens here. I’m the head of the mining law department at Werksmans Attorneys in Johannesburg, South Africa. Werksmans represents many of the major mining houses in South Africa and is integrally involved in mining law. Today, I’m speaking in my capacity as head of the mining practice group at LEX Africa. LEX Africa is an alliance of law firms across Africa, representing key mining jurisdictions. Today, we are fortunate to have two legal experts from Mozambique: Deivid Sacur and Naby Jamal, who will share their insights on Mozambique’s mining law.
Overview of LEX Africa and Mining Guide
Chris Stevens 01:05
LEX Africa represents numerous countries and has put together a mining guide covering various jurisdictions in Africa. This guide includes provisions on royalties, administrative law, mining-related community issues, and requirements related to shareholding and digitization. All the participating countries in this series will be represented at the Mining Indaba, which begins this Sunday. The mining guide is available on the LEX Africa website for further reference.
Introducing the Mozambique Legal Experts
Chris Stevens 02:00
Now, I’m going to hand over to our Mozambique partners, Deivid Sacur and Naby Jamal, to discuss recent trends in mining law in Mozambique, as well as aspects of resource nationalism and its impact on the country’s mining industry.
Introduction to the Speakers
Naby Jamal 11:34
Thank you, Chris. My name is Naby Jamal, and I am a lawyer specializing in commercial law, corporate law, and real estate in Mozambique since 2023. I’m happy to discuss mining law in Mozambique. Now, I’ll hand over to my colleague, Deivid Sacur.
Deivid Sacur 11:48
Good afternoon, everyone. My name is Deivid Sacur, associate lawyer at JLA since 2016. I coordinate the public law area, which includes mining, energy, oil, gas, and the environment. We’ve worked on large projects like the Balama Graphite Project and due diligence for Kenmare. I’m excited to share insights on Mozambique’s mining sector, especially in relation to the Mining Indaba.
Importance of the Mining Indaba
Deivid Sacur 14:00
The Mining Indaba provides a unique platform for exchange between jurisdictions to discuss issues faced by emerging mining jurisdictions like Mozambique. It’s an opportunity to share knowledge on how to capitalize on natural resources for the development of local communities and the country as a whole.
Recent Developments in Mozambique’s Mining Law
Chris Stevens 14:20
Deivid, have there been any recent developments in Mozambique’s mining laws, particularly with regard to beneficiation, royalty regimes, or other key provisions that might impact the sector?
Naby Jamal 14:55
Yes, there have been several changes in the past 10 years. These include increased state participation in mining projects and stricter local content requirements. For example, the percentage of local workers and suppliers has been increased, and coal taxes have risen from 3% to 10%. Additionally, diamonds and gemstones must be processed locally before export, according to a decree passed in 2020.
Foreign Investment and Ownership in Mozambique
Chris Stevens 17:31
What are the provisions in Mozambique’s law for foreign investors? Are there local indigenization requirements, and what consents are needed for a foreign investor to acquire an interest in a mining project?
Naby Jamal 17:53
Under Mozambique’s mining law, there are no specific requirements for foreign investors to partner with nationals to acquire mining titles. However, mining contracts must be signed with companies that have the state as a shareholder, and preference must be given to local suppliers. Mining service providers from outside Mozambique are also required to associate with local entities. Further regulations on this are expected in the future.
Updates in Mozambique’s Mining Regulation
Chris Stevens 22:00
That’s very insightful. Are there any recent updates to Mozambique’s mining regulations?
Naby Jamal 24:37
Yes, in November 2024, a new regulation was introduced to establish the rules for registering mining operators in Mozambique. This regulation is crucial for the future of mining activities in the country, as it aims to formalize and control mining operations and enhance sustainability.
Concluding Remarks and Future Outlook
Chris Stevens 27:05
Thank you for the valuable insights, Deivid and Naby. As we’ve seen, the mining laws in Mozambique are evolving to ensure sustainable development while attracting investment. These topics are crucial, especially with the upcoming Mining Indaba. Thank you to our listeners for tuning in.
Naby Jamal 27:17
Thank you, Chris. We look forward to further discussions on the progress of Mozambique’s mining sector.
Chris Stevens 28:01
Thank you once again, and we hope to see some of you at the Mining Indaba.
