MOZAMBIQUE Law and Practice Contributed by: João Afonso Fialho, Guilherme Daniel and Helna Vitoldás, VdA
projects. Foreign investors usually raise funds overseas through private equity or in interna - tional securities markets. 5.6 Security over Mining Tenements and Related Assets According to the Mining Law Regulations, infra - structures, installations and other assets allo - cated to mining operations may be mortgaged, pledged or used as collateral to secure loans for the financing of mining operations, subject to the prior approval of the Ministry of Mineral Resources and Energy. Furthermore, according to Law 19/2018 of 28 December 2018 (which approves the legal framework for securities over movables and creates the Central Registry for Security Over Movables), holders of mining rights may create security interests over mineral resources already extracted or to be extracted, the latter being limited to the purpose of funding the relevant exploration or extraction. 6. Mining: Outlook and Trends 6.1 Two-Year Forecast for the Mining Sector The 2024 State Budget Economic and Social Plan (PESOE) The Mozambican mining sector has proved very attractive in recent times, with the predominance of a variety of minerals of high commercial val - ue contributing to making the country a highly attractive investment destination. According to the 2024 State Budget Economic and Social Plan (PESOE), the international market continues to be favourable to trade in mineral resources, and companies in the mining sector continue to have stable production after adapting to global conditions. The PESOE also highlights a con -
tinued increase in the production of gold, heavy sands, rubies and mineral coal, demonstrating the sector’s growth and the strengthening of the national economy. ESG Considerations ESG considerations are becoming increasing - ly important in the mining sector. Companies operating in Mozambique will need to adhere to higher standards of environmental protection and social responsibility. This trend will shape investment decisions and operational practices. Political Disruption While Mozambique has made strides in improv - ing economic stability, political risk is currently at the top of the country’s main concerns. The announcement of the general elections results on 9 October 2024 was marred by allegations of irregularities and fraud, which led to wide - spread protests against the electoral process. There has been widespread disruption across Mozambique, which has had an effect on the country’s overall economic performance and an impact on its mining operations. Development of Supporting Industries The under-developed manufacturing industry in Mozambique still presents challenges to the mining industry and makes for a difficult operat - ing environment. The development of Mozam - bique’s roads, railways and ports infrastruc - ture needs to keep pace with the demand for its natural resources, in order for the country to achieve its forecasted growth and maintain a high development rate for the sector. To this end, co-operation between private and public sector entities with global stakeholders is crucial to unlock the capital and technologies required for continued market growth.
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