Mozambican government publicises mining contracts

6 December 2013

On 3 December the Mozambican government started to publicise the mining and oil contracts and concessions operating in the country, the country’s Minister for Mining Resources, Esperança Bias said Thursday in Maputo.

Answering questions from members of parliament at a parliamentary session due to end Friday, the minister said that the publicity was part of a commitment made by the government to make information about the extractive industries public, based on the Law on Public-Private Partnerships, Megaprojects and Business Concessions, which stipulates that all contracts signed after 2001 should be made public.

“However, as there are contracts signed before 2001, the Ministry for Mining Resources has contacted the companies in order for both parties to give up the confidentiality clause, (…) and, for example, Sasol agreed to publish all the contracts it has signed and these are already available on the Ministry of Mining Resources website,” the minister said.

In relation to renegotiating some of these contracts, due, mainly, to incentives to concession companies, Bias said that these benefits were in line with legislation in place when they were signed and that they were due to expire soon.

According to Bias, the corporate tax (IRC) benefits to Sasol had ended in 2011 and were due to end in 2016 for Kenmare Resources, which explores heavy sands in Moma and in relation to the Vale group corporate tax is due to be reduced by 25 percent for five years from the date when the group posts a profit.

“As a result of the end of some tax benefits and recovery of the investments made, Sasol’s contribution to State revenues rose from 189 million meticals in 2011 to 1.052 billion in 2012,” she noted. (macauhub)