Mozambique’s National Mining Institute (INAMI) has recently presented publicly a bill on the mining sector, which foresees the channelling of 10 per cent of revenues from mining operations to the development of the province, districts, and local communities where the operations are taking place.
The bill also foresees the restructuring of INAMI and the creation of a Mining Promotion Agency, and of a Mining Regulatory Authority, which will be focused on licensing and controlling permits and independent technical oversight.
However, Fátima Mimbire, project director of the Mozambican NGO N’weti, said that the percentage suggested in the bill is minimal.
“I think we should return an even larger percentage to the districts and provinces”, she said. “We don’t agree with just 10 per cent. We can think of 50, 60 or 70 per cent. It would make more sense, and with that amount, we could then divide 40 percent for the province and 20 percent for the district”.
She also called on the inclusion of community representatives in order to prevent funds from being taken or misused by “local elites.” “The active participation of community representatives in the management committees of these funds must be ensured to prevent capture by local elites and ensure greater transparency”, she added.
Other measures proposed by the bill include promoting national businesses by prioritizing the local acquisition of goods and services by mining companies; and preventing and combating money laundering and terrorism.
These innovations are expected to accelerate industrialization and strategic control of mineral resources, thus promoting new investments and increasing revenue collection.
The presentation of the bill is part of the public consultation for the revision of the legal framework in the areas of mining, energy and hydrocarbons.
Meanwhile the regulatory update is designed to boost transparency, efficiency, governance, and sustainable growth. The reform is guided by a strategic vision to leverage rising global demand for critical minerals, aiming to attract private and foreign investment while protecting national interests through value retention and encouraging local industrial development.
The proposal is aligned with Mozambique’s Five-Year Plan, which prioritizes the expansion of the mining sector by revitalizing industrial processing capacities, strengthening local exploration, and ensuring transparent and inclusive management of mineral resources.
Particular emphasis is placed on reducing raw mineral exports by promoting domestic processing, especially for minerals such as graphite and gold, supported by infrastructure development to facilitate commercialization.
