February 06 2006
As part of the ongoing reform of the legislation governing the mining industry, a new set of Marketing Regulations for Mineral Products was recently approved by the Council of Ministers in Decree 16/2005. The main purpose of the decree is to define the rules which apply to the marketing of mineral products, as well as the terms and conditions of the licensing procedure for entities wishing to conduct such business.
For the purposes of the regulations, marketing licences have been categorized as follows:
Individuals and corporations wishing to carry out marketing activities involving mineral products are required to file an application with the minister of mineral resources. The application must give full details of:
Although applications are addressed to the minister of mineral resources, they are processed by the National Directorate of Mines or the provincial directorate with jurisdiction over the operating area in question. The processing charge payable for applications is set at MT1.5 million (approximately $60), but may be revised by a joint ministerial order issued by the ministers of finance and mineral resources.
The regulations require the minister of mineral resources to issue a decision on the application within 45 days of its submission to the relevant authority. If the application is approved and the licence granted to the applicant, an annual marketing charge is payable to the National Directorate of Mines. The charge ranges from MT10 million to MT25 million depending on the class of licence in question.
In addition, the licence holder is required to (i) monitor the activity of the mineral operators registered under its licence, and (ii) provide annual information on the sale and purchase activities carried out during the year, completing a sale and purchase registration form on a quarterly basis.
Marketing licences are valid for five years and may be extended for a further five years if the minister of mineral resources considers that certain requirements have been met.
Marketing licence holders that were already engaged in licensed marketing of mineral products were granted a grace period of 180 days to regularize their rights and duties.
The regulations provide that, while the minister of mineral resources is responsible for awarding marketing licences, the Bank of Mozambique is responsible for approving all agreements entered into with foreign entities relating to the processing of gold.
For further information on this topic please contact Alberto Galhardo Simões at Miranda, Correia, Amendoeira & Associados' Lisbon office by telephone (+351 21 781 4800) or by fax (+351 21 781 4802) or by email (Alberto.GalhardoSimoes@mirandalawfirm.com).
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