- Mozambique | 5 December 2020
What are the key mandate areas of INAMI?
INAMI was established in 2014 as a regulatory body with financial autonomy for the mining sector. The passing of a new law concerning mines consolidated all areas of the sector under the same roof, including exploration, licensing, and governance, which were previously managed by different ministerial bodies. Our main focus since the beginning has been modernizing the mining licensing process through digitalization. We have introduced the latest update to the system by the end of 2019, aiming to improve interaction between all interested parties by transforming analog paperwork into a digitalized process. To ensure cybersecurity, our next step is to transfer all data onto a government-controlled cloud. Through our portal, licensing information has become visible to everyone worldwide, enhancing efficiency. Another important aspect of our mandate is conducting geological research and providing reliable geological information to the public. Since 2007, the government has undertaken a comprehensive mapping effort of the entire country on a 1:250,000 scale. INAMI has executed the airborne geophysical survey of 75% of the national territory and has mapped mineral-rich provinces in more detail on a 1:50,000 scale. We are also mapping a large area between the provinces of Nampula and Zambezia and expect to complete the remaining maps by 2021.
How has Mozambique progressed in terms of transparency in the mining sector?
Mozambique has made significant strides in improving transparency, and our online portal is a testament to this progress. We are working towards becoming Extractive Industries Transparency Initiative (EITI)-compliant within the agreed timeline. However, one of the remaining challenges is meeting the deadlines for mining titles and licensing. The process is now fully established, and we ensure that companies operating in the sector are well-informed about ongoing procedures.
What are the main investment opportunities in Mozambique’s mining sector?
Mozambique boasts abundant mineral resources, presenting numerous investment opportunities. We have resources for energy production, including coal, natural gas, and uranium. In addition, there are precious metals such as gold and silver, as well as iron, magnesium, chromium, titanium, copper, aluminum, cobalt, nickel, and rare metals like niobium. In 2016, we granted approximately 1,400 licenses, and that number has increased to 2,000 licenses today. The opportunities in the mining sector are expanding, attracting growing interest from international investors.
Considering Vale’s scaled-down operations, do you anticipate the coal industry in Mozambique phasing out?
I don’t believe the coal industry in Mozambique is destined to phase out. The prices of mineral resources are highly volatile and respond to shifts in demand. Despite a general decrease in the price of raw materials on the international market in recent years, the demand for coal remains high in countries with significant energy needs, like India. Furthermore, the introduction of “clean coal” in the market, a treated type of coal that pollutes less, has further contributed to the demand for coal. In fact, we might even see an increase in coal demand.
What are INAMI’s objectives for 2020?
In 2020, we have several objectives. We are collaborating with the National Institute of Statistics (INE) to conduct a census of small-scale artisanal miners. This information is crucial for understanding their locations, identities, and activities, which we currently lack. We will continue the process of geologically mapping the country and aim to complete five maps at a 1:250,000 scale by the end of the year. Additionally, we will closely monitor companies to ensure that processes and production commence within the established deadlines.