We use cookies to customise content for your subscription and for analytics.
If you continue to browse the International Law Office website, we will assume you are happy to receive all of our cookies. For further information please read our Cookie Policy.

New Regulations Reform Trade in Mineral Products - International Law Office

International Law Office

Energy & Natural Resources - Mozambique

New Regulations Reform Trade in Mineral Products

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:

  • A class I marketing licence entitles the holder to purchase mineral products for use in manufacturing jewellery;

  • A class II marketing licence entitles the holder to purchase mineral products from artisanal producers and resell them to other mining operators or public or private entities; and

  • A class III marketing licence entitles the holder to undertake the purchase, sale, treatment and processing of mineral products.

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:

  • the identity of the applicant, to include the identification of shareholders and an indication of corporate structure in the case of corporate applicants;

  • the class of licence and operation being applied for;

  • the mineral products to be marketed; and

  • the marketing programme.

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).

Comment or question for author

ILO provides online commentaries as specialist Legal Newsletters. Written in collaboration with over 500 of the world's leading experts and covering more than 100 jurisdictions, it delivers individually requested information via email to an influential global audience of law firm partners and international corporate counsel. Please click here to register for the service.

The materials contained on this website are for general information purposes only and are subject to the disclaimer.

ILO is a premium online legal update service for major companies and law firms worldwide. In-house corporate counsel and other users of legal services, as well as law firm partners, qualify for a free subscription. Register at www.iloinfo.com.