MOZAMBIQUE Law and Practice Contributed by: João Afonso Fialho, Guilherme Daniel and Helna Vitoldás, VdA
determination of taxes specific to mining activity. 1.3 Ownership of Mineral Resources According to the Mozambican Constitution, all mineral resources found in the soil, subsoil, inland waters, continental shelf and exclusive economic zone are the sole property of the state. This principle also emerges from the Mining Law and the Mining Law Regulations, which establish the rules for the award of, access to and exercise of mineral rights by private entities. 1.4 Role of the State in Mining Law and Regulations The Mozambican State, as the original owner of mineral resources, acts as a grantor-regulator of mineral rights and is responsible for promot - ing the evaluation of existing mining potential, awarding mineral rights and overseeing the con - ducting of mineral activities. State participation is not expressly established in the Mining Law, which only sets forth that the state should progressively increase its par - ticipation in mining projects. However, accord - ing to the Law on Public-Private Partnerships, Large-Scale Enterprises and Business Conces - sions and relevant regulations, which apply to large-scale mining projects, the state reserves the right to negotiate a free carried participation of no less than 5%. 1.5 Nature of Mineral Rights The Mozambican Constitution establishes that all mineral resources found in the soil, subsoil, inland waters, continental shelf and exclusive economic zone belong to the state. Mineral rights (for exploration, mining, marketing and beneficiation of minerals) are awarded by the state by means of a licence or contract under the terms and requirements set out in the Min -
ing Law and the Mining Law Regulations. The awarding of mineral rights does not include land
rights over the concession area. 1.6 Granting of Mineral Rights
Mineral rights are awarded by the Ministry of Mineral Resources and Energy or the provincial governor, depending on the nature of the opera - tions, by means of a licence or contract. According to the Mining Law and the Mining Law Regulations, mineral rights may be granted by means of any of the following mineral titles: • a prospecting and exploration licence;
• a mining concession; • a mining certificate; • a mining pass; • a mineral handling licence; • a mineral processing licence; and • a marketing licence.
The government may conclude a mining con - tract with the holder of a prospecting and explo - ration licence and a mining concession, taking into account the size of the project, the value of the investment and the strategic minerals. Mineral rights can be awarded further to an application (on a first come, first served basis) or through a public tender procedure. The award - ing of mineral rights is subject to publication in the Official Gazette. 1.7 Mining: Security of Tenure Mineral Titles Prospecting and exploration licence Prospecting and exploration licences are award - ed to legal persons with technical and financial capacity that are incorporated and registered in Mozambique. These licences allow holders to carry out geo-scientific and geo-technical
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