the exploration activities; and to use, in the mining title area, the water, wood and other materials neces- sary for operations, in accordance with applicable law.


The mining legislation also provides that the con-


cession for the catchment of mineral water is granted by Mirem, after consultation with the relevant enti- ties provided for in the Water Law. Together with these rights, a mining title holder


has the same number of general obligations. First, it must demarcate the area subject of the mining title within a period of 90 days from the date of the issue of the mining title. At least three months before the end of the


demarcation period, the title holder must provide a report to Mirem containing an adequate work pro- gramme and minimum expenditure to be made in the following year in relation to that work pro- gramme. It must submit reports to Mirem on an annual


basis detailing the expenditure made under the min- ing title in the previous year and the proposed expen- diture for the forthcoming year. It must also provide a report to Mirem every three


months detailing the exploration which has been undertaken in that three-month period. In addition, it must carry out activities of explo-


ration and research in accordance with the submitted work program, present the annual report of invest- ments made in the previous year and the investment programme for the following year, submit (at least three months before the end of each mining title year) a programme of work and minimum expendi- ture to be made in the following year, and submit annual reports of exploration and research.


The rights to all land in Mozambique are vested


in the government, which means that land is the property of the government and cannot be sold or otherwise alienated, mortgaged or encumbered. The land use for mining operations has priority over other land uses when economic and social benefits related to such mining operations are higher; nevertheless, in order to start development, a project will always require a right of land use and enjoyment (known as a DUAT). The DUAT will have a validity period and size consistent with the mining title and will be renewed automatically whenever those mining titles are renewed.


Being green Mining activities must be undertaken in conformity with the laws and regulations in force relevant to the use and exploration of mineral resources, as well as to the protection and preservation of the environment, including social, economic and cultural aspects; and in accordance with good mining practices, in order to minimise waste and the loss of natural resources and protect them against unnecessary damage. There are several basic environmental manage-


ment tools within the context of the mining activi- ties: the environmental impact assessment; the envi- ronmental management programme; the environ- mental management plan; the environmental moni- toring programme; the mine closure programme; the environmental audit; and the risk and emergency control programme. For the purposes of environmental management,


mining activities are classified as level 1, 2 or 3 accord- ing to the scope of the operations to be undertaken and the complexity of the equipment to be used.


Level 1 activities comprise small-scale operations


undertaken by individuals or cooperatives as well as reconnaissance and exploration operations not involving mechanised methods. Level 2 activities comprise mining operations in quarries or extraction and mining activities of other mineral resources for construction, exploration and mining activities involving mechanised equipment, as well as pilot projects. Level 3 activities comprise mining opera- tions not included in previous lines and involving mechanised methods. When an activity is prone to causing negative


environmental impact and may be placed in more than one level, that activity will be governed by the higher level rules. For the purpose of mining activities, environmen-


tal management is governed by basic environmental management rules for level 1 activities, environmen- tal management plans, for level 2 activities, and envi- ronmental impact studies for the level 3 activities.


Raising capital Mozambique’s capital and financial markets remain small and undeveloped, nevertheless, this situation is gradually starting to change in order to sustain the rapid growth and development which the country has experienced in the last decade. The relatively recently enacted Law 15/2011 (the


PPP Law), which entered into force on August 10 2011, establishes the guiding rules for the process of contracting, implementing and monitoring under- takings of public-private partnerships, large-scale projects and business concessions. Its Regulations, approved by Decree 16/2012 which entered into force on July 4 2012, provide that the financial ben-


About the author Taciana Peão Lopes is a partner and head of the energy, natural resources and infrastructure department at Couto Graça & Associados. Her main practice areas are public and regulatory, energy and natural resources and infrastructure, and PPPs. Among her main projects, Lopes has advised: Vale on railway/port PPP


concessions and on a Coal Engine Power Plant (300 MW); Sasol on a Gas Engine Power Plant (175MW); Investec on a Gas Engine Power Plant (40 MW); the Public Government Utility for the implementation of LNG projects in Pemba, including an airport and a port; Mitsui; and Wentworth Resources.


Contact information


Taciana Peão Lopes Couto Graça & Associados


Av Kim Il Sung, 961 Maputo,


Mozambique


T: +21 48 64 38/9/40/2/3/5 F: +258 21 48 64 41 W: www.cga.co.mz


About the author Paulo Ferreira is a senior associate lawyer in Couto Graça & Associados’ energy, natural resources and infrastructure practice. His main practice areas are civil litigation, commercial, labour, administrative and arbitration, and public law and regulation (in the energy, mines and natural resources sectors). Ferreira has six years’ litigation experience in civil, commercial, labour, and


administrative matters, including in cases submitted to judicial and arbitration tribunals in which he acted as an advocate. In 2011 he joined the firm’s energy, natural resources and infrastructure practice where he has been advising in the areas of infrastructure, energy, gas and oil and mining.


Contact information


Paulo Ferreira Couto Graça & Associados


Av Kim Il Sung, 961 Maputo,


Mozambique


T: +21 48 64 38/9/40/2/3/5 F: +258 21 48 64 41 W: www.cga.co.mz


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