Legal Update/Mozambique: Amendments to the Mining Law Regulations and Fees


Mozambique has made Amendments to the Mining Law Regulations and Fees to be charged for the provision of services by the Kimberley Process Management Unit, Precious Metals and Gems, according to official legal database Legis-PALOP+TL.

As of October 13, 2022, mining operators who apply for a mining title to the Mining Registry with the National Institute of Mines will be required to submit the following documents:
⦁ Declaration attesting that the applicant’s shareholders and beneficial owners are not involved in money laundering and terrorist financing activities and proliferation of weapons of mass destruction;
⦁ Criminal Record Certificate, in the case of a individuals; and
⦁ As a legal person constituted under Mozambican legislation, require the document proving the incorporation of the legal person, indicating the share capital and its division by the respective partners and the instrument designating the legal representative, in the case of public limited companies.

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From that date onwards, the following practices are considered to be especially serious misdemeanors and are subject to fines of up to 15,000,000 MZN (about 230,000 USD):
⦁ The exercise of mining activity for the purposes of money laundering, financing of terrorism and financing of the proliferation of weapons of mass destruction;
⦁ The lack, refusal and extemporaneous submission of research reports, production as well as the purchase and sale of mineral products;
⦁ The omission of information on the legal representative, the beneficial owner, as well as on the purchaser of mineral products;
⦁ Failure to provide information required under applicable law.

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These new rules apply to operators of the following activities:
⦁ Prospecting and research;
⦁ Mining development, exploration, processing and treatment;
⦁ Geological mapping; and
⦁ Geological-mining, metallurgical and scientific studies.

The commercialization of mineral products carried out under the Mineral Products Commercialization License is excluded from the scope of application of the aforementioned obligations.

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The values ​​of Fees for Mining Licensing and Authorizations are kept updated in June 2022, which are between 1.000 MZN and 6.400.000 MZN (about 15 USD and 100.000 USD).

As for the fees to be charged by the Kimberley Process Management Unit, Precious Metals and Gems, they are in amounts up to 1000 MZN/g (about 15 USD per gram) or up to 0.8% of the commercial value of diamonds, gems or gold, applicable to the provision of the following services:
⦁ Expertise and processing for the purpose of exporting and/or importing diamonds;
⦁ Evaluation of rough diamonds, precious metals and gemstones;
⦁ Identification of rough diamonds, precious metals and gemstones;
⦁ Assessment of the levels of precious metals;
⦁ Valuation of rough diamonds and cut gemstones;
⦁ Other related services.

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