MOZAMBIQUE Law and Practice Contributed by: João Afonso Fialho, Guilherme Daniel and Helna Vitoldás, VdA
of 25 years (extendable once for an equivalent period, but not exceeding 50 years in total). Mineral processing licence Mineral processing consists of mining operations along the extractive industry chain to obtain the mining concentrate. These licences are award - ed to legal persons with technical and financial capacity that are incorporated and registered in Mozambique. They are awarded for a period of 25 years (extendable once for an equivalent period, but not exceeding 50 years in total). Marketing licence A marketing licence grants its holder the right to market the mineral products specified in the licence within the relevant area of opera - tion. These are valid for a period of five years (extendable for an equivalent period). A market - ing licence is only required where the entity sell - ing or exporting the minerals is not the same as the producer. Transfer of Mineral Titles According to the Mining Law Regulations, min - eral titles may be transferred under the following terms: • a prospecting and exploration licence, mining concession, mineral handling licence and mineral processing licence are only transfer - able between legal persons incorporated and registered in accordance with Mozambican legislation; • a mining certificate is only transferable to a national natural or legal person domiciled in Mozambique; and • a mining pass may only be transferred to a national natural person or legal person estab - lished between nationals.
The transfer of mineral titles or shares (whether direct or indirect) in a company holding mineral titles is subject to the prior approval of the Min - istry of Mineral Resources and Energy and may only be requested two years after the start of the respective mineral activities. The application must be accompanied by a report on the activi - ties carried out and a tax discharge certificate issued by the tax authority. Revocation of Mineral Rights According to the Mining Law and Mining Law Regulations, mineral titles can be revoked in the following situations, among others (specifically previewed for each type of mineral title): • failure to pay specific taxes; • failure to comply with any regulation or provi - sion set out in the mining contract that fore - sees the revocation of the mining right; • bankruptcy, agreement or composition with the creditors (except if a guarantee has been registered over the mining facilities); • transformation or dissolution of the mining company without the government’s prior approval; and • indebtedness to the state. Immediate revocation may occur in the follow - ing cases: • failure to pay the surface or production tax, for more than 90 days past the due date; • failure to carry out mining activities or to sub - mit the respective annual works report within 24 months following the issuance of a pros - pecting and exploration licence; and • failure to start mining production within 48 months following the award of a mining con - cession, or 24 months following the issuance of a mining certificate, as applicable.
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