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Mozambique opens Tete coal licensing

TWO months after freezing coal licensing in Tete province, Mozambique has reportedly reopened the...

Justin Niessner

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Tete is estimated to be the largest untapped coal province in the world and until recently was considered overloaded with projects, unable to take on the logistical demands of new tenements.

According to a report by Reuters Africa, the Mozambican government will launch a new round of international bidding for licences in the region where coal giants Vale and Rio Tinto have already started production.

The move represents a transition in policy for the former Portuguese colony, which typically issues licences on a first-come, first-served basis and regularly announces suspensions on issuing prospecting, surveying and mining certificates.

Ministry of Resources, Energy and Mining deputy director Geraldo Valoi told Reuters the new policy was an effort to streamline procedures and mining laws which have resulted in controversial tax revenue losses as was the case with Rio Tinto’s 2011 takeover of Riversdale.

“After that deal everyone wanted to shout at us asking why we hadn’t done anything,” Valoi was quoted as saying.

“We are studying how other countries are doing it.”

The decision to open up licensing comes after a public outcry over mining activities in the region culminated in rioting and coal rail blockades.

A group of 500 Tete families rallied against Vale’s coal mining operations in the region last week blocking railroads and highways, according to The Christian Science Monitor.

The international newspaper said the government responded with riot police and Vale’s activities resumed within 24 hours.

Valoi told Reuters the protest against the Brazilian miner and the subsequent police action was a “learning exercise for everyone”

“We will make mistakes but … we don’t deserve to be poor having all those huge resources. That’s why we are working hard to adjust the legal environment.”

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