Mozambique will cancel the mining concessions of companies that fail to exploit their mines, Mineral Resources Minister Esperanca Bias said on Friday.

Bias told reporters that some companies, granted concessions for gold and other resources including nickel, copper and zinc ores or bauxite, were not working the mines, in contravention of mining laws.

"The government's aim is not to apply fines but to cancel licences. The government planned to see serious work, 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 had depleted all the concession areas available for the surveying and mining of coal.

"We have exhausted all our potential areas and now focus is on investments, which we foresee could amount to around $20 billion if we are to invest everywhere where coal is available," she said.

International companies have been seeking coal exploration licences in the southern African country after President Armando Guebuza's government said it was seeking to double new mining investments in the next five years.

Australian and Brazilian companies are investing up to $10 billion in coal production in the country's northern region.

Reuters

Readers Comments (3)

Show/Hide comments

Show/Hide comment form