Mozambique: Regulator proposes revising Mining Law to allocate 10% of revenues to provinces and local communities

On Monday, July 28, Mozambique’s National Institute of Mines (INAMI) presented a proposal in Maputo to revise the country’s Mining Law. Among other measures, the proposal includes allocating 10% of revenues from mining activities to the development of the province, district, and communities where extraction takes place, according to the Mozambican Information Agency.

The proposal was unveiled during a public consultation event, which concluded a series of sessions that began on July 14 in Inhambane province and will culminate in a national seminar before being submitted to the Assembly of the Republic.

The initiative aims to update the legal framework of the mining sector, addressing demands for greater transparency, benefit sharing, and institutional strengthening. However, the proposed 10% allocation has drawn criticism.

Fátima Mimbire, a researcher and project director at the NGO N’weti, argued that 10% is insufficient. She advocates for a significantly higher share, aligning with the concept of the “royal tax”—the idea that communities, as rightful stakeholders, should receive a substantial portion of the wealth extracted from their lands.

“We should be thinking in terms of 50%, 60%, even 70%. That would make more sense. For example, 40% could go to the province and 20% to the district,” Mimbire suggested, acknowledging that revenue allocation could vary depending on the resource, especially in the oil sector. Other participants proposed including community representatives in fund management committees to prevent elite capture and ensure greater transparency. The overarching goal is to guarantee a fairer distribution of benefits to those affected by extractive activities.

The proposed revision also includes restructuring INAMI itself, suggesting the creation of two separate entities: a Mining Promotion Agency to boost exploration and attract qualified investment, and a Mining Regulatory Authority responsible for easing the licensing process, managing titles, and strengthening independent technical oversight. However, legal expert Rodrigo Rocha expressed skepticism, warning that the plan might increase bureaucracy and create overlapping institutions with unclear mandates. “It could be more disjointed than helpful,” he cautioned.

Additional legal reforms include introducing online licensing, requiring contracts with the state for exploration of strategic minerals, issuing special licenses for protected areas, enhancing government oversight, promoting local entrepreneurship, combating money laundering, and preventing terrorism.

With these reforms, the government aims to accelerate industrialization, attract new investment, increase revenue collection, and exercise stronger strategic control over mineral resources—modernizing and streamlining the sector. The public consultation in Maputo also included proposals to revise the Petroleum Law, Local Content Law, electricity concession regulations, and the universal access fee.