MOZAMBIQUE Law and Practice Contributed by: João Afonso Fialho, Guilherme Daniel and Helna Vitoldás, VdA
legislation and in the legislation governing min - ing labour relations. The various local content rules found in the Min - ing Law and the Mining Law Regulations also play a pivotal role in creating the best social practices for the development of mining activi - ties in the country, to the benefit of local com - munities. The “G” Companies operating in Mozambique are increas - ingly adopting anti-corruption measures within their organisations, through the implementation of programmes and procedures that aim to make employees aware of situations conducive to cor - ruption and the associated risks. Investment from foreign investors that is subject to strict anti-brib - ery and anti-corruption laws (eg, the FCPA and UK Anti-Bribery Act) has also contributed to a marked increase in the implementation of high standards of control of corruption. It is also worth mentioning that Mozambique has recently made a number of amendments to domestic legislation on the prevention of money laundering and financing of terrorism, including in the mining sector. The purpose of the legisla - tion is to remedy important gaps, deficiencies and inaccuracies, so as to enable compliance with international standards for combating mon - ey laundering and the financing of terrorism. 2.8 Illegal Mining Illegal mining in remote areas, particulary in north - ern Mozambique, is a matter of concern and represents one of the country’s main challenges. Such practice is mainly carried out by young min - ers, both Mozambican nationals and foreigners and also local communities, who engage in illegal mining hoping to earn large sums of money to guarantee their livelihoods. This practice affects
legal industrial mineral production in several ways, as it leads to resource depletion, environ - mental degradation, the economic viability of mining operations resulting in a loss of revenue for the government, and safety concerns in view of accidents and fatalities, which in turn tarnish the reputation of the mining sector as a whole. Government efforts to curtail illegal mining include increased supervision and inspection of the mining sector by ensuring co-ordination between national and local government bodies involved in the management and supervision of the mining sector, as well as enforcement of penalties on those involved in illegal mining. On the other hand, mining companies that have been suffering invasions are increasing security measures around their operations to prevent ille - gal miners from encroaching on their sites. 2.9 Good and Bad Examples of Community Relations/Consultation Impacting Mining Projects Positive developments in mining projects include the growing awareness of the potential risks that mining activities have on the environment, biodi - versity and the climate, and a greater tendency for environmental issues to be an integral part of the strategy of mining projects, seeking to introduce mechanisms that minimise the envi - ronmental risks resulting from such activities. However, there continues to be insufficient com - munication between the government/mining companies and resettled communities, as well as poor management of the resettlement process. As an example, local communities resettled due to coal operations in the past have reported that the resettlement resulted in significant and sustained disruptions to basic rights protected under the constitution, namely, access to food, water and work. Failure to address these con -
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