Mozambique: Government revokes mining licences

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Mozambique: Government revokes mining licences

1:09 CAT | 12 Feb 2020

Picture: Mozambique Mining Post

The Mozambican government has revoked concessions awarded to Kingho Investiment Company and Midwest Africa. Another five mining companies are under National Institute of Mines (INAMI) scrutiny, but have invoked “facts of force majeure” to justify the fact that, so far, they have not started activities.

Eight out of the 20 of mineral coal mining concessions in Mozambique have not yet started production and, therefore, in light of the legislation, their licenses are subject to being revoked.

Inami-concessoes — Source: Opinion of the Administrative Court on the General State Account in 2018

INAMI told @Verdade that: “The mining concessions of ICVL Zambeze, Eta Star Mozambique, Sol Mineração Moçambique are in force, having received pre-notices of revocation for non-compliance with the starting deadlines of production. In response, they presented grounds and justifications that led to the lifting of the pre-revocation notices.”

“The mining concessions of Minas de Revuboè and ENRC Mozambique are also in force but invoked facts of force majeure that have been accepted.”

INAMI however revealed that the concessions granted to Kingho Investiment Company and Midwest Africa have been revoked.

Indian-funded Midwest Africa in 2013 obtained the concession of 15,840 hectares in Moatize, Tete province, for the exploitation of coal and base metals, starting in 2019. It promised to invest US$1.4 billion and create 1,320 jobs, but nothing transpired.

In 2014, Chinese-owned Kingho Investiment Company, in association with the Mozambican Mining Company and the insurance company Monte Binga, obtained a 8,000 hectares concession for coal mining in Mufa, Marara district, Tete province. Kingho promised to invest US$1 billion and create 1,471 jobs in activities scheduled to begin in 2015, but production never started.

By Adérito Caldeira

Source: A Verdade