By Paul Fauvet
Maputo (MOZTIMES) – The Mozambican parliament, the Assembly of the Republic, on Wednesday approved the first reading of a government bill that makes sweeping changes to the country’s mining legislation as the government seeks to tighten state control over mineral resources, increase revenues and position the country to benefit from the global energy transition and rising demand for critical minerals.
The proposed reforms, presented by the Minister of Mineral Resources and Energy, Estevão Pale, come amid growing international competition for minerals used in electric batteries, renewable energy technologies and digital industries.
Speaking to parliament, Pale said the overhaul follows commitments made by President Daniel Chapo during his inauguration in January, when he pledged “deep reforms” in Mozambique’s extractive sector.
“One of the commitments made was to carry out profound reforms in the mineral resources sector, bringing justice to mining,” the minister said.
Under the proposed legislation, mining concessions considered politically or economically strategic would be awarded through public tenders or auctions, a move authorities say is intended to improve transparency and reduce allegations of opaque licensing practices.
The government also wants the communities living in mining areas to receive “real benefits” from mining projects, while transforming the National Mining Institute into an agency focused on financing, training and modernizing small and medium-scale mining operators and associations.
Pale said the reform is necessary to align Mozambique’s legislation with fast-changing global dynamics in the extractive industry.
“The international dynamic, marked by the global energy transition and the digital economy, has been increasing demand for minerals, positioning Mozambique as a relevant actor,” he said.
Mozambique holds significant reserves of graphite, heavy mineral sands, rubies and natural gas, resources increasingly viewed as strategic in the global transition toward cleaner energy systems.
According to the minister, the revision will also strengthen state sovereignty over mineral resources and improve the country’s ability to collect revenues from mining activities.
“The proposal to revise the Mining Law arises from the need to reinforce the sovereignty of the state and its capacity to collect revenues from mining operations,” he said.
The reforms further aim to promote domestic processing of mineral resources, instead of exporting the minerals unprocessed, in line with the African Mining Vision, an African Union framework encouraging value addition and industrialization on the continent.
The authorities say the new framework will also expand opportunities for local businesses and artisanal miners through cooperatives and inclusion in mining value chains, with the broader objective of boosting economic development and macroeconomic stability.
“The initiative is part of the package of structural reforms defended by the President of the Republic for the extractive sector, with the objective of ensuring that the country’s mineral resources and hydrocarbons are converted into effective engines of economic and social development,” Pale stated.
The approval comes at a time when Mozambique is under pressure to demonstrate that its vast natural resource wealth can generate broader economic gains for ordinary citizens, after years of criticism over unequal distribution of benefits from mega-projects in the mining and natural gas sectors. (PF).
