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ARTICLE · 29 OCTOBER 2014

Mozambique’s New Mining Law: A Re-Balancing Act

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Mozambique’s new Mining Law introduces changes largely aimed at re-balancing the terms under which mining activities are conducted in favour of Mozambique and Mozambicans.

MozambiqueEnergy and Natural Resources
A&O Shearman
A&O Shearman
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Mozambique's new Mining Law (Law No. 20/2014 of 18 August) introduces changes largely aimed at re-balancing the terms under which mining activities are conducted in favour of Mozambique and Mozambicans, following the trend started by the so-called "Mega Projects Law" (Law No. 15/2011 of 10 August 2011)

Prior to the entry into force of the New Mining Law, the performance of mining activities in Mozambique was governed by Law No. 14/2002 of 26 June 2002 (the "2002 Mining Law").

Since the 2002 Mining Law was enacted, Mozambique experienced unprecedented growth in its mining sector mainly thanks to the discovery of enormous coal reserves in the Tete basin in approximately 2005. Mozambique's coal reserves are among the largest undeveloped coal reserves in the world. International mining companies such as Vale and Coal India are in the process of developing world scale thermal and coking coal mines which could allow Mozambique to export between 20-50 million tonnes of

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