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On 1 September 2021, Mozambique approved the new Regulation regarding the sale of diamonds, precious metals, and gemstones (Decree no. 63/2021), which revoked the previous Regulation (Decree 25/2015) and applies to operations of research and production performed under mining authorizations, and to the sale and acquisition of diamonds, precious metals, and gemstones, establishing the conditions for the exercise of activities as the import, export, transportation, and commercialization of such products.

The main rules foreseen in this Regulation, are:
  • The commercialization of the diamonds, precious metals, and gemstones may be performed only by Mozambican companies;
  • Any operation regarding research, production, or commercialization of these products may be performed only by duly authorized entities, which shall also be registered in the Ministry of Natural Resources;
  • The request regarding a Commercialization License shall be decided in 60 days after the application;
  • Commercialization Licenses are valid for 5 years, and may be renewed by the same period if the licensed fulfilled some requirements, as the compliance with all the obligations imposed by the license and the presentation of a report regarding the activities performed during the five years;
  • License renewal must be requested at least 60 days before its expiration;
  • The licensed entity shall inform annually the sale operations performed in each year;
  • The Commercialization License may be transferred to another holder, with the authorization of the Minister who supervises the sector;
  • Commercialization Licenses may be revoked by the Minister who supervises the area, when i) the licensed breaches any rules foreseen in the mining laws and regulations, ii) the licensed is condemned by certain crimes, iii) is not paid the annual commercialization tax, iv) the licensed is involved in illegal commercialization acts or has given false information to obtain the license;
  • Exports and imports of such products shall be performed through trading posts approved by the Government;
  • Exports of rough diamonds, precious metals, and gemstones need to be authorized by the Kimberley Procedure,
  • Precious Metals, and Gemstones Management Unit through the Kimberley Procedure Certificate, which is valid for 60 days;
  • The Kimberley Procedure Certificate for diamondsshall be approved or denied within three workdays after the request; for precious metals and gemstones, the decision is due in five workdays;
  • Mining operators shall register the possession of diamonds, precious metals, and gemstones or have the declaration of sale issued by the Kimberley Procedure Management Unit, or they may be apprehended and revert to the State;
  • Holders of Commercialization Licenses have 90 days from the publication of the present Regulation to comply with their new duties according to the new legislation;
  • Were forbidden some behaviors and foreseen sanctions to those situations, as in case of import without the necessary authorization or false information to the inspecting authorities;
  • Any production or transaction of rough diamonds shall be communicated to the Kimberley Procedure Management Unit, and its export shall be authorized by this entity.

With this new Regulation, Mozambique intends to update its legislation according to the sector international recommendations and best practices.

Article by Duarte Marques da Cruz

Duarte Marques da Cruz Duarte Marques da Cruz is partner of the Portuguese law firm MC&A, specialised in international business advisory, with a special focus in Lusophone markets. With extensive experience in the Energy sector (Renewables and Oil & Gas) and in International Taxation, he has supported international companies in major upstream, midstream transactions and projects, including in implementing, exploration and development programs. Duarte has also supported international clients in other areas of practice, namely, Mining, Transport & Logistics, Regulatory Compliance and Mergers & Acquisitions in Mozambique, Angola and Portugal. Through this Simplification Project, Angola shows to investors and economic players that intends to maintain its bet on the internal and external investment; on other hand, it is important to note that this simplification procedure is only at its beginning and is expected a wider range of facilitation in multiple public administration proceedings and regarding more sectors of the economy.