Posted by The Mozambique Government has said it would cancel mining concession in cases where concession-holders are not yet exploring the mines as required by law to do so after a certain period of being issued the mining rights.
Mineral Resources Minister Esperanca Bias told reporters that some companies that were granted concessions to mine gold and other metals such as nickel, bauxite, copper and zinc had done nothing, and others were not complying with current mining legislation.
“The government’s aim is not to apply fines but to cancel licenses. The government plans to see serious work being done, and under the terms of the law, they must present an activity report,†she said
The Mozambican government has issued 296 licenses to 115 companies for mining concessions.
Bias said Mozambique has also exhausted all its coal concession areas available for surveying and mining of coal, and she believes that the challenge to the country and its companies is focused on investments in the area to support the development of mining with services and logistics support.
“We have exhausted all our potential areas and now the focus is on investments which we foresee could amount to around US$20 billion if we are to invest everywhere where coal is available”, she said.
International companies have been flooding the southern African national in search for coal exploration licenses after President Armando Guebuza´s government issued an international interest to attract investors.
Australian and Brazilian companies are investing up to $10 billion in coal production in the country’s northern region where coal potential is abundant.
Source African Press Agency
