IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 18 Aug 2014 | Removal date: open ended
Still in force

Local sourcing

On 18 August 2014, the government of Mozambique adopted the new Mining Law (Law. no. 20/2014) which came into force on the same day and replaces the previous mining law from 2002.
 
The new legislation is based the government's 2013 Policy and Strategy for Mineral Resources (Resolution no. 89/2013). The strategy puts an emphasis on local ownership and sustainability, but also wants to assure international investors.
 
Local Content Requirements
As for the amendments with an impact on trade, it is mainly the implementation of localization requirements that discriminate against foreign trade partners:

  • The Mozambican government must be involved in all mining contracts, de facto creating a public-private partnership requirement. All mining contracts have to fulfill minimum local content, employment and training requirements.
  • The government is also required to progressively increase its participation in mining projects. However, the new Mining Law does not clarify the cap and speed of this process.
  • Preference is given to goods and services offered by Mozambican entities.
  • Foreign entities providing services to mining operations are required to associate with local entities.
  • Mining companies must be listed on the Mozambican Stock Exchange
  • Companies have to supply the domestic market with its products. However, the law does not state a minimum requirement.

 
New legal frameworks
The new Mining Law is closely linked to other new laws, such as the Mining Tax Law and the Petroleum Law. The latter covers hydrocarbons (gas and oil) which have been deliberately excluded in the new Mining Law. For the Petroleum Law, please consult measure no. 10034 under Related Measures.

AFFECTED COUNTRIES

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