Regulation for sustainable mining in Mozambique

September 26, 2024

Dino Miguel Milisse, director-general of Instituto Nacional de Minas (INAMI), talks to The Energy Year about establishing mechanisms for the responsible extraction and export of Mozambican minerals and the enhanced capabilities of INAMI’s new geology lab. INAMI is Mozambique’s regulatory authority for public and private mining activities.

What is INAMI’s role within the Mozambican mining industry?
As the national mining institute, we regulate Mozambique’s mining sector. We set guidelines for public and private entities involved in the research, exploration and commercialisation of mineral resources. The mining sector is a significant driver of Mozambique’s economy, and as regulators, we play a role in attracting investment to the country, generating government revenue and creating jobs.
Transparency is at the core of our work, and we maintain a mining cadastre map that is publicly available online. It provides comprehensive mining data so that anyone can easily check if a specific area is open for exploration and stakeholders can make informed investment decisions.
We promote responsible mining practices and seek to strike a balance between the economic benefits derived from mining and broader environmental and social considerations. We’re also involved in initiatives to reduce the carbon footprint of mining operations throughout Mozambique. INAMI is committed to ensuring sustainable growth.
Our responsibilities also include conducting research on Mozambique’s diverse mineral resources and overseeing the application process for mining licences. The vast potential of our sector translates to a high volume of mining requests that we must meticulously analyse.

Can you give us an overview of the geology lab inaugurated by INAMI in 2024?
Our new geology lab is a significant development for INAMI and the future of Mozambique’s mining industry. The lab’s capabilities allow us to monitor the entire mineral production cycle, from extraction to sale. This includes conducting chemical and technological analyses to determine the value of minerals.
It is an asset for the national economy and a means of enhancing the skills of domestic practitioners in the sector. We are currently implementing training programmes to ensure our lab staff possess the necessary knowledge.
The lab is equipped to high standards and we encourage all mining companies to utilise it for sample analysis. At the moment we are working towards certification for domestic projects but we also want to extend our services to neighbouring countries as well. As we expand the lab’s range of capabilities, we can significantly reduce our reliance on external service providers and simultaneously develop a potential source of revenue for INAMI.

 

What are the current requirements for acquiring a mining licence in Mozambique?
Acquiring a mining licence in Mozambique is a straightforward procedure. Operators can check the online mining cadastre to see if their desired exploration areas are available and, once they have identified a suitable location, they simply need to visit our office and submit the required documents for review. Our team will ensure everything is in order.
Depending on the specifics of the request, the process may involve additional steps. For applications from provinces without INAMI delegations, we collaborate with local entities to gather relevant information regarding existing mining activities in the area for a comprehensive review of applications. We aim to deliver approved licences within six days, which compares well to the time it takes in other countries.

How does INAMI manage the process of collecting taxes from mining operations?
While mining licences in Mozambique aren’t excessively expensive, each licence comes with a specific tax obligation. Previously, a single tax number covered multiple licences, including those outside the mining sector. This made it difficult to track activity and flag potential discrepancies.
To address this, we have implemented a new system assigning a unique tax number to each mining licence. This allows us to monitor activity more effectively and identify any inconsistencies in company reports. In the past, some companies might have misrepresented their profitability, but with these new measures, we can ensure more accurate reporting and better tax collection.

What steps is INAMI taking to promote growth in Mozambique’s mining sector?
Mozambique’s mining sector is experiencing a boom. In 2023 alone, the port of Maputo exported a staggering 25 million tonnes of minerals. This success is a product of collaboration. INAMI works closely with Customs and the Ministry of Industry and Commerce, sharing information about mineral flows and ensuring proper oversight.
Looking ahead, we expect continued growth in the number of licences issued and in sector profits. Our vision extends beyond just numbers, however. We promote responsible industry practices and strive to ensure all licence holders adhere to regulations and contribute their fair share through taxes and fees. If these objectives are met, the mining sector can be a powerful engine for Mozambique’s economic development.
We also aim to minimise the environmental impact of mining operations. Unfortunately, some companies only pay lip service to environmental concerns. To counteract this, INAMI has a rigorous monitoring programme. Every year we conduct numerous field inspections to ensure companies are adhering to the environmental protection practices outlined in their project proposals. We take environmental commitments seriously and hold companies accountable when they are not met.

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