Professional Documents
Culture Documents
Diamonds in Mozambique
Potencial Areas
Index
INTRODUCTION ..........................................................................................................................................................................5
Age.................................................................................................................................................................................................... 20
Figures
Tables
Table 1- Volumes of diamond surveying activities carried out by the USSR Team (1980/82) ........................16
Table 2- Geological Formation from the Jurassic to the Quaternary..............................................................29
PREFACE
Kimberlites were first identified in 1980 during prospecting and exploration operations for
coal at the Metangula (Maniamba Graben) basin in the north of the country. Prior to that,
some work was carried out in which additional data was collected indicating possible
existence of diamonds in the country. Reconnaissance, exploration and prospecting
activities undertaken by different teams between 1983 and 1995 had to be suspended
owing to security problems. Very recently, preliminary prospecting and exploration
activities have taken place in the regions of Pafuri, Mapai, Chicualacula (Gaza province)
and Umbeluzi (Maputo province).
These activities should have been continued covering more areas of exploration in order
to achieve desirable results. As we can see from the present brochure and on the basis
of previous activities, there exist a greater potential and a strong probability for diamond
discovery in various areas of the country. It is in this context, that the objective of the
Ministry of Mineral and Energy Resources is to promote diamond exploration in the
country, inviting firms with recognized technical and financial capability as well as
experience in carrying out activities in different regions of the country with greater
potential in diamond mining.
In this regard, the Ministry of Mineral and Energy Resources, possesses the legal
instruments such as the Mining Law that is very attractive for investors. This law
establishes special conditions for reconnaissance, prospecting and exploration in vast
areas of the country with the potential of diamond discovery. This brochure aims at
highlighting geological information necessary for diamond exploration and prospecting in
Mozambique thus, inviting specialised firms in this area. Mozambique’s economic
stability and the ongoing rehabilitation of infrastructures create favourable conditions for
investment in the diamondiferous areas of the country.
John W. Kachamila
Minister of Mineral Resources and Energy
1. GENERAL ASPECTS
INTRODUCTION
The areas of major fracture interaction and transforming faults play an important role in
this cratonic environment. Although Mozambican kimberlites occur on a mobile belt, it
has been shown that cratonic fragments can also occur in this kind of geological
environment; AQUATER, BRGM, HUNTING (1880) e Bush (1988). The evolutionary
stage has destroyed the cratonic phase transforming it into mobile belts where cratonic
fragments favourable to the occurrence of diamondiferous kimberlites exist; Bush
(1988). Apart from that, global compression of Tectonic Plates is still in its embryonic
phase. However, we cannot ignore the possibility of diamond occurrence resulting from
changing continental faults; Rodriques (1972), as in the case of Angola, Brazil and
Australia. In fact, the similarity of the tectonic situation between Angola and Tanzania
regarding diamondiferous kimberlites has been demonstrated; King (1970). Moreover,
old geo-fractures similar to changing faults may also occur in Mozambique.
The kimberlitic diatremes of the Lucapa Graben in Angola occurred in the far NE of
major continental transforming faults with NE direction. The diamondiferous diatremes
are particularly located at the fault interaction of the NE and NNW; Monforte (1977). In
Mozambique, such areas of fault interaction within possible cratonic fragments could
represent a similar favourable environment. In Brazil, the occurrence of diamondiferous
kimberlites takes place in areas of Precambrian geo-fractures reactivated with a NW
direction within a large region of fractural intersection. A similar situation may prevail in
Mozambique.
Based on tectonic kno wledge and in the light of new discoveries of kimberlitic rocks in
areas that were previously regarded as unfavourable such as Australia, the possibility of
diamondiferous occurrence in Mozambique should not and ought not be ignored.
The Upper Precambrian (500 million years old) is characteristic of the Mozambique Belt
that is one of the most important tectonic structures of the Afro-Arabic region. It has
formations that are highly remobilised by this orogeny. (absolute ages of the Kibarian
have been registered 1350 million year old), Irumide (1100-1000 million years old),
Mozambican (950-800 million years old, Katanguiana (680-650 million years old) and
the Pan-African (600-520 million years old).
The tectonic structure of the Mozambique Belt is heterogeneous. There are three
tectonic provinces covered by this orogeny in Mozambique:
The Karoo Super Group (180-300 million years old.) divides into Lower and Upper
Series. The Upper Series consists of tilites, sandstones and schists. The rocks of the
Lower Series consist of basalt, rhyolites and ignimbrites.
The quaternary is characterised by alluvial and eluvia deposits, terraces and lacustrine
carbonates.
There are two major groups of diamondiferous kimberlites in East and Southern Africa
(fig.3): The Meso-Cenozonic kimberlites of Tanzania, genetically related to the Rift zone
where diamonds are found in the central part and presumably the most spacious part of
the Tanzanian Crater (South of Lake Victoria). These kimberlites are tectonically stable
from the Medium Proterozoic. On the other hand, barren kimberlites occur near
diamondiferous areas where major Rift zones have disappeared inside or pass through
small fracture areas. These areas are located near the edge or inside the young
orogenic belts.
The kimberlites of South Africa, Botswana, Namibia, Zimbabwe and Lesotho also occur
in old, yet stable craters with high concentration on diamondiferous kimberlites in the
centre.
Key
N Margin of craton
+ Borren kimberlite
Two different ages are distinguished for South African kimberlites namely:
(a) Precambrian;
(a) Cretaceous, related to the dismemberment of the Gonduana super continent that
has resulted in intensive rifting in Mozambique and Malawi; Arsenyev (1962).
It is well known that the appropriate environment for the appearance of productive
kimberlites is the existence of stable craters. The most intensive rifting in dense marginal
cretaceous crusts that are not as thick tends to favour the formation of carbonates,
nephelinites a nd phonolites.
It is however interesting to note that in the peripheral cratonic areas of South Africa,
Tanzania, Angola and Russia, the more diamondiferous diatreme is located on the
intersection of major tectonic alignments; Arsenoyev (1962). This could be the case for
Mozambique (fig4).
Globally, magmatic kimberlites occur in East and Southern Africa, Brazil and Australia in
depression regions related to transforming faults. The kimberlitic chimneys of the
Lucapa Graben in Angola occur in the NE alignment of one of the largest transforming
continental faults with a NE orientation. The diamondiferous diatremes are mainly
situated in the intersections of faults with NE and NNW orientation; Monforte (1970).
Jazigos de carvão
karoo
Precãmbrico
Pliocênico
Falhas
picadas
Hipótese para sondagem
In Mozambique, such areas of fault intersection within cratonic fragments may represent
a similar environment. In Brazil, diamondiferous kimberlites occur along the NW
alignment. This represents the reactivation of Precambrian geofractures with an
intensive region of intersection fractures. A similar situation may exist in Mozambique.
Freitas de Andrade (1929) confused diamond with quartz and referred to the existence
of a diamond on the Komati River - Sabie area of Moamba (Maputo province). These
were in fact basalts and crystals of colourless quartz and aments calcite. In 1954, many
newspapers announced the discovery of a diamond deposit by a South African in the
same Moamba region. On the whole, the analysis of the samples proved to be examples
of transparent quartz.
In June 1932 and 1955, diamond exploration was carried out in the neighbourhood of
Caia and Inhaminga (verbal information). According to the same source, levels of yellow
and blue soils typical to transformed kimberlite bodies occur in that region.
In 1931 and between 1967 and 1969, the Catuane region was subjected to diamond
prospecting and exploration. It was thought that alluvial diamonds occur along the
leftward banks of Maputo River about 16 Km to the WSW of Catuane.
Other regions that were researched but without tangible results are as follows:
• The mouth of the Save River, explored in 1965,
• The mouth of the Limpopo River in 1964 by a private entity.
• (1964), the region between Changara and Marara explored by DIAMOC
• (1968), the region between Zumbo and Moatize by DIAMOC
• Different firms conducted offshore studied of the coastal strip extending from
Zambezi to Pebane offshore for heavy soils and diamonds.
In 1973, a diamondiferous kimberlite was identified in the region of Zumbo near the
Zambian border. However, there has not been any confirmation of this information;
Bardet (1973).
The only kimberlites that have been identified in the Northern regions of the country took
place near Lunho River to the North of Metangula carried out by team of French
geologists in 1976/77; Vernier (1977). Later, (1980/83) Russian geologists confirmed the
existence of kimberlites during an exploration exercise for coal and nephelinics on
Mount Chissinda; Yokovenko (1980). Portuguese geologists described the same rocks
as ultra basic dykes.
Of the different explorations carried out in the central and southern regions of the
country, alluvial diamond deposits were only identified by DIAMOC in two areas namely,
the Mapai/Massingir regions in the Gaza province and in the area of Doa in the Tete
province.
The Maniamba Basin is asymmetric and extends along the SW to the NE of Lake
Niassa. It is 70 Km wide up to the border with the Republic of Tanzania (about 190 Km
long). The northern slope of this basin has a smooth decline with the Lunho River at the
bottom.
From the regional perspective, this area forms the integral part of the tectonic province
of Niassa and the Mozambique Belt. There are two major rocks occurring in this region
namely:
(1) The metamorphic Precambrian rocks represented by biotetical and amphibolitic
gneisses migmatites, amphibolites, crystalline calcareous, schist and quartzite.
(2) The sequence of the Karoo Super Group is characterised by changes in the level s of
argillaceous rocks with those of the arenistic rudeceous fragments, concrete rocks and
conglomerates that are transformed into concrete bricks of rock fragments in some
areas; (G.B.Salman et al.1985).
The Lower Karoo consists of two productive carboniferous layers that are related to the
Karoo deposits in Tanzania (Graben Ruhuhu). These belong to the Beaufort Series. The
deposits of the Beaufort Series also occur in discordance on the carboniferous rocks of
Ecca. On the upper part of the layers, there are red levels of Triassic reptile remains.
(Pinna et al, 1986).
Legend
R Karoo deposits
Precambric rocks
+P+
The Upper Karoo is represented by volcanogenic formations that extend along the far
North East of the Graben on an 80 Km strip that is 17 Km wide. It is here that the three
lower members of the Karoo sequence in the central region of Mozambique developed;
(Hunting, 1984). They are as follows: the olivine basalts, clinopyroxenes, trachytes,
rhyolites, tufts and silites; brown basalts, undeveloped lava, rare acids, tufts and
sedimentary rocks; amygdaloidal basalts which are more developed. The Karoo
deposits are about 2000 to 2500 metres wide extending from the SW to the NE. They
decrease on the margins the graben to about 100-150m; (Salman et al. 1985).
The Precambrian is linked to the Katanguiano tectonic cycle with the direction of its
major movement reflected in folds of sub meridian extension to the NE. All the structures
formed during this period show signs of having undergone intensive transformation.
The sedimentary cover constitutes a monoclinal in which horizontal layers are slightly
declined (10° to 20° to the NNW) in disagreement with the crystalline base that forms
the inner part of the Maniamba Graben.
3.2 Historical Data
Portuguese geologists were the first to conduct geological exploration in the Maniamba
Graben between 1949 and 1950. They named these kimberlitic ultramaphic dykes.
Systemic activities were first planned in 1977 with the aim of evaluating carboniferous
potential of the Metangula Basin. This led to the drafting of a geological chart at the
scale of 1: 250 000 between 1977 and 1980; Vernier (1978/1982). Around the same
period, a team of complex exploration (BIC) consisting of the then USSR geologists
identified kimberlitic dykes; Yakovenko (1980). Later between 1981 and 1983, detailed
prospecting and exploration took place in the same area; Alekseev (1983). Some results
of this research activity are presented and discussed in this paper.
All mapped bodies occur within the limits of the Maniamba Graben and consists of the
Karoo sediments. Diamond prospecting that took place covered an area of about 1100
Km2.
The nature and volume of work already carried out has been summarised in Table 1.
However, of the 4307 samples collected, the Russian technicians only presented the
results of subsequently, detailed mineral metric studies that culminated in the
delimitation of important regions with bodies of kimberlitic outcrops were carried out.
Five zones with outcrops of kimberlitic rocks were delimited (Fig 7)
This area is located about 4-7 Km from Lake Niassa with a 28Km NW extension towards
a NW (325°) direction. 16 outcrops of kimberlitic dykes with a vein-shaped body of
similar composition were mapped.
This area cuts across the central area prospected on a NW (325°) with an extension of
more than 15 Km to the NW. There are 43 dykes and 4 isometric bodies of kimberlitic
composition. It is situated halfway of Namango River (SE of the area). Among these,
there is a “TX" (T10) chimney that is 60 x 70 metres and situated in the dyke area
(identified as N° 3302) with a NW direction.
This is the only region are where detailed work has been carried out. The larger part of
this area was covered by land-based magnetic survey on a scale of 1:10 000 and a geo-
chemical survey on a scale of 1:5000. Major intrusions were discovered through
excavations from which samples of the base rock were gathered. (figs. 8 e 9).
Legenda
Sediments of Karroo
Quimberlites
Quimberlites
Outcrops Border
Quimberlites
Isolinha Za
Trench A – with
quimberlits B – with
sediments rocks
Location of semples
This are is situated to the East on the leftward margin of Luimba River. It has an
extension of 2,5 Km with the width of 0,5 Km. 4 dykes with a sub-vertical slope were
discovered. The length of these slopes varies between 100 to 1100 metres with a
difference of a few metres.
Zone 5 – Micuela
This area was identified through data gathered from a land-based magnetic survey. It is
situated near the Micuela settlement between the Luimba and Lunho Rivers (upper
route), with a width of 200 metres and an extension of 500 to 600 metres towards the
NW.
The intention of the survey was to carry out activities in all the above-mentioned areas in
two phases. The first one involving general prospecting on the scale of 1:50 000 and the
second, a detailed prospecting in the perspective areas (fig.6). However, owing to the
National Directorate of Mines / National Directorate of Geology 18
Diamonds in Mozambique Potential Areas
civil war in 1983, the activities were suspended, making it impossible to carry out full
prospecting of the intended volumes.
Zone 5 – Micuela
This area was identified through data gathered from a land-based magnetic survey. It is
situated near the Micuela settlement between the Luimba and Lunho Rivers (upper
route), with a width of 200 metres and an extension of 500 to 600 metres towards the
NW.
The intention of the survey was to carry out activities in all the above-mentioned areas in
two phases. The first one involving general prospecting on the scale of 1:50 000 and the
second, a detailed prospecting in the perspective areas (fig.6). However, owing to the
civil war in 1983, the activities were suspended, making it impossible to carry out full
prospecting of the intended volumes.
All mapped kimberlitic bodies fall within the limits of the Maniamba Graben and beyond
the margins of the Karoo sediments no kimberlitic bodies were found.
The predominant regional structural pattern in this area consists of faults with a NNW,
NNE direction and rarely NE. The kimberlitic dykes occur in the intersections of the
faults NW and NE (small), and they are generally sub-vertical with the same abrupt
plunge.
All the isometric bodies that have been identified are directly linked to the dykes and it is
thought that they are from the same injections. The character of some insignificant
deformations that form the monoclonal (formed by the Karoo sediments) does not reflect
the disposition of kimberlitic bodies.
The dykes form extended and sub -parallel chains that are 8 metres high (the central part
of the Tulo-Namango area, between the Lunho and Tulo rivers) or crystals of about 8
metres (SE of the Mefululutxe-Fúngoè area). Dykes may also occur along the margins
and bottom of valleys but with no significant surface presences. The isometric bodies
form significant surface presence.
Age
The presence of xenoliths of the Lower Karoo and inferior layers of the Upper Karoo,
help to confirm the post-Karoo age of these kimberlitic rocks. This is common for African
kimberlites.
There are two types of picrites: The first belongs to black rocks that are rich in magnetite
with or without undefined porphyritic phenocryts. It has a brilliant and sparkling surface
where they break open. The second variety is represented by bright porphyritic rocks,
with disseminated crystalline and frequently concentrated in black, dark-grey or
greenish-grey micas.
Among the “real” kimberlites, three groups have been identified namely: massive
kimberlites, eruptive breccias and rocks transformed into picrites. These are
distinguishable from picrites but contain a complete series of satellite minerals of
diamonds.
The principal minerals on the heavier fraction of the Kimberlites consist of magnetite,
ilmenite, pyrope, olivine, almandine, cromodiopsite, perovosquite, rutile, limonite and
monoclinic pyroxene
The non-magnetic heavier alluvium fraction of the Lunho and Fúnguè River contain
rutile, monopyroxena, ilmenite, apatite, almandine, pyrope, limonite, hornblende and
flogophite. The pyropes present clear colours (less chrome) and the dark one (a lot of
chrome). Those of violet colour are predominant (up to 70%). The maximum drift of
satellite minerals are found in kimberlitic breccias (pyrope in 60% of the samples) and
the maximum drift in porphyric kimberlites with magnetite.
• The Upper course of the Lucambo and Mecondece Rivers with a mineralogical
association consisting of ilmenite -zircon-rutile. The monoclinal pyroxene, almandine,
turmaline, epidote and apatite occurred as supplements in the sample.
The results obtained so far show the existence of the Maniamba Graben kimberlites
(Lunho River), However, their potential in diamond remains to be seen. Approved
kimberlitic magnetism occurs in the SW part of the graben only, on the basins of the
Lunho and Fúgoè Rivers. Various isometric bodies that constitute diatremes or their
roots were discovered within this area.
In the future, kimberlitic bodies could be searched along the N and W of this area. This
is based on the grounds that mineral satellites of diamond were discovered in the
Messinge River.
The decrease in the depth of erosion in this direction increases the perspective of the
discovery of large kimberlitic chimneys. However, the possibility of finding
diamondiferous bodies in these rivers is remote.
-The Fúguè River Basin and the rightward margin of the Lunho River are characterised
by associations
The above-mentioned region is located on the Zambezi Basin (Mid Zambezi) and
covers the provinces of Tete (Doa/Mutarara) and Manica (Tambara). The following
geographical coordinates delimits the region:
Latitude Longitude
16° 02' 00'' 34° 10' 00''
18° 10' 00'' 35° 15' 00''
The rocks of the Karoo Super Group and those of the Sena Formation dominate the
geology of this area. The Karoo Super Group is represented by the Ecca, Beaufort and
Stormberg heights. The Ecca (Upper Karoo) heights consist of diamond, argillite, grit
stone and siltation base formations. In the intermediate region, there is a Reproductive
Series rich in Coal. This is represented by grey grit stones, siltation and argillite with
layers of coal. The top consists of stratified archean grit stones, conglomerates, argillite
and siltations in addition to layers of multicoloured margarites with ferromagnesian
carbonates.
Geo-economic Perspectives
An exclusive application for diamond exploration was presented in 1964 in the region
between Doa and Mutarara.
A Large part of the areas being studied is located on the Lupata Formation of the Mid
Zambezi synclinal Graben. This is one of the six regions in the country where Mesozoic
magnetism (post-Karoo) occur. It is conditioned by the development of the Southern
and East African rifts. This kind of magnetism is linked to kimberlites found to the North
of the Maniamba graben (I and K); Yakovenko (1980) and Karakoulov (1982/83). A few
carbonate outcrops also occur in the same region. It was confirmed in Angola and in
Lesotho that the carbonates and kimberlites are contemporaneous and occur under
similar tectonic conditions. Monfort (1970). Consequently, it is very possible that
kimberlitic bodies really occur in this region. Once this hypothesis is proved, the Sena
Formation would be considered the major and secondary collector of diamonds from
erosion of kimberlites.
Bardet (1973), refers to the existence of a diamondiferous kimberlite in Zumbo near the
border with Zambia. However, the same author does not confirm the claim. Such a
kimberlite could be running along the meridian of the Niassa Crater nucleus (in Zambia)
which covers north of the Zumbo district, Marávia and the WNW of Chiúta; Bush (1988)
Outcrops of the tonalitic gneisses granite are occurring in the Zumbo district. According
to the results of an interpretation of satellite images and complex analysis of geographic
and geological data, the tonalitic gneisses granite that occurs in this region forms the
cratonic sequential base of the concordant supracrustal formations of the Inferior
Archean of Báruè Complex. This complex is comparable to the granite gneisses on the
base of the South African Crater of the Archean age; Bush (1988).
The region between Caia and Inhaminga was subject to research and possible diamond
exploration in 1932 and in 1955. According to some verbal information, there have been
levels of yellow and blues soils that are typical to altered kimberlitic soils in the area.
Similar to the above -mentioned areas, the BRGM suggested the hypothesis of the
existence of Kimberlites in the area North of Lichinga and West of the 36°E meridian. In
National Directorate of Mines / National Directorate of Geology 26
Diamonds in Mozambique Potential Areas
all these areas, the BRGM does not present geological evidence to support the
hypothesis since these areas are situated outside the craters.
Kimberlitic bodies may occur in a small strip that constitutes the Eastern extension of the
Rhodesian Crater and along the margins of the same crater between the base rocks of
the Báruè Complex and the rocks of the Karoo spots. Afonso et al (1976) and a group of
BRGM members, argued that cratonic fragments of kimberlitic bodies occurred in the
Báruè Complex especially in the Canie region.
3 SECONDARY DEPOSITS
Despite the fact that no diamonds have been discovered, they may eventually occur in
the hydro-graphical basin of the Umbeluzi river. This is due to the existence of
diamondiferous deposits on the river’s drainage system a short distance from the border
in Swaziland (Dokolowayo Mine and Thane Deposit. Old remnants of diamondiferous
exploration were found in 1955.
The above -mentioned area is situated in the Gaza province. It covers part of the
Chicualacuala, Massingir and Guijá districts and share borders with the Republic of
South Africa and Zimbabwe. This is within 22° 12' 00'' and 24° 30' 00'' Parallels S and
the 31° 02' 00'' and 33° 10' 00'' Meridian E, (Fig.10).
Between 1965 and 1967, the region was subjected to detailed geochemical studies that
were carried out by DIAMOC a firm that is currently not operating. During the
exploration, six small diamonds were found in the alluvium of the Olifants River and the
Combomune soils with the following dimensions:
With the exception of nobody the first of the six that was offered to the Freire de
Andrade Musuem of Lourenço Marques in 1966, nobody knows where these diamonds
are. The first one a small crystal presently exhibited at the National Geology Museum in
Maputo.
Of the minerals that accompany diamonds, ilmenites and rutiles were recovered as
supplements. No diamond was recovered.
In spite of the fact that the latest alluvial diamond prospecting and exploration activities
were negative, our point of view is that this area continues to be a potential. Diamonds
were recovered before Mozambique’s independence but only South of the Pafuri. In
sum, the Lipompo River and its effluents contain diamondiferous deposits (Venétia and
Messina) in South Africa and Zimbabwe that are about 150 and 225 Km respectively.
Limpopo, being the largest river in South Africa and consequently with a large drainage
area, obviously transports a lot of non-diamondiferous materials. Rock pebbles
emanating from formations situated in the diamondiferous areas of neighbouring
countries were identified in Pafuri.
The Sena Formation, with its large concentration of diamond satellite minerals, has been
identified as the first possible collector of secondary diamonds. On the basis of the type
of sediment found , environmental similarities of Cretaceous sediments of the Limpopo
and the Orange Rivers in Namibia were established.
Based on these assumptions, we can conclude that the volume of material washed
away in this operation has been greatly reduced. Apart from that, none of the excavated
locations did reach the "bed-rock". An Australian firm only reached 30 metres, but it is
known that diamond are found at a depth of 40 metres.
In the light of this, it is recommended that deposits of the Sena Formation be sampled
up to the bed-rock in future activities and, not only along the actual bed of the Limpopo
River, but also on its old bed "Paleo-Channels". Sediments related to fluvial stages of
the medium Miocene and the Pleio-Pleistocene ought to be researched as well because
they may contain considerable quantities of diamonds.
Figure 12 - Distribution of Diamond Deposits and Occurrences of Diamonds in Africa. (adopted from V. O. Rugitski
and V.D. Sculski)
5. Economic Policy
The principal objective of the economic recovery programme was the establishment of a
base for economic growth through:
These measures helped to create basic conditions for economic reform necessary for
the country’s development.
The Investment Law (Lei 3/93) is the only instrument that regulates both national and
foreign sectors of investment with the exception of the mining and the petroleum sectors.
Foreign investors can operate within the national territory in both the local currency, the
Metical or in foreign currency in a free market environment with fiscal incentives equally
extended to both national and foreign players.
Apart from the state -owned Bank - BM, there is also a growing number of Banks and
private credit institutions such as Banco Austral, Banco Internacional de Moçambique-
BIM, linked to the Banco de Fomento de Exterior, Banco Standard Totta (affiliate of the
Standard Chartered Bank) Equator Bank, Caixa Económica Francesa, Credicoop-
cooperativa de crédito, Fundo de Fomento Mineiro in addition to other financial
institutions which offer foreign exchange and other financial services.
The Mining Geological Policy was approved through resolution Nº4/98 of 24 February
1998, together with the present legislation that encourages private investment in the
mining sector. Activities of the mining sector in Mozambique are regulated by the Mining
Law Nº2/86 of 16 of April 1986, amended by Law Nº 3/94 and by the respective
Regulation approved by Decree Nº 13/87 of 24 February 1987.
All taxes are regulated by the recently approved Fiscal System applicable to mining
activities through Decree Nº 53/94 of 9 November. The process to issue Mining Titles for
small-scale mining is regulated by the Mining Certificate through the Ministerial Diploma
Nº 77/94 of 25 May.
All the applications for Mining Concessions are addressed to the Ministry of Mineral
Resources and Energy through the National Directorate of Mines for processing and
subsequent approval.
• A Mining Title that is issued to individual or collective entities for small-scale mining
in designated areas within a renewable period of years.
Apart from the above-mentioned licences, there is also a Mineral and Precious Metal
Trading Licence that allows Title holders to buy and sell gemstones, gold and precious
metals.
The mining sector is regulated by a specific fiscal system for mining activities that
contain among many, the following terms:
Diamonds 10%
Precious and semi-precious stones 6%
Precious Metals 5%
Ornamental Rocks 4%
Other mineral products 3%
This is an annual tax payable to the State by all mining operators during the
reconnaissance, prospecting and exploration phases. The payment entitles the
operators to an exemption during the aforementioned phases. For land tenure it is US$
1.00 per hectare of the prospecting and exploration licence and US$ 0.10 for the
reconnaissance licence.
• The Right to exemption from Custom Duties for mining operators on import of
equipment and other means for use in prospecting, exploration and production.
• The Right to exemption from tax on imports of equipment, accessories and materials
destined for use in the mining production process.
5.1.6.4 Incentives
• The industrial contribution tax applicable to mining activities is 40% of the annual
profit. If the investment take place in new ventures in the mining activity, the
investors can benefit from 50% discount on the industrial contribution tax for the
period of investment recovery that must not exceed 10 fiscal exercises effective from
the beginning of the operations;
In order to benefit from these fiscal incentives, investors must obtain a clearance permit
from the Ministry of Planning and Finance. The Ministry of Mineral Resources and
Energy provides assistance to all investors in obtaining the necessary documentation.
Starting from January 1994, the Government adopted regulations aimed at allowing the
development and exploration of Industrial Free Trade Zones (ZFIs’) in order to promote
industrial activities for export purposes, with an obligation to export at least 85% of the
production. This regulation is not applicable to mining activities when it comes to
operations of mineral refining and transformation operations in which a relative Industrial
Free Trade Zone (ZFIs) is applicable.
The ZFIs are defined as parking areas or geographically delimited industrial units
regulated by a special custom and fiscal system, on the understanding that the ZFIs and
the operators, designate development and/or administrative companies and holders of
the ZFI Certificates to benefit from the following prerogatives:
b) Industrial machinery and equipment for transport and respective accessories as well
as the respective spare parts;
c) Telecommunication equipment (fax, telex, telephone, data transmission terminals),
photocopiers, air conditioning equipment, fans, air extractors, type writers, computers,
text processors, equipment for the implementation of professional training programmes
such as overhead projectors, video recorders and television as well as respective spare
parts and accessories;
e) Up to 20 commercial vehicles for office use as long as the value does not exceed the
total investment of the project.
Total exemption from any incidental taxes on imports, exports and profits, with the
application of one the following three modes of special tax payments:
• ZFI development and/or administrative firms starting from the 6th Year (and
benefiting from fiscal exemption during the first 5 years of activities) can pay a
special exemption tax of:
• Industrial firms operating on the ZFI starting from the 2nd year (benefiting from fiscal
exemption during the 1 st year of the activities) can pay a special exemption tax of:
5.2 Licensing
Applications for licences in mining activities are addressed to the Ministry of Mineral
Resources and Energy, an entity that is responsible for regulating and administration of
the Mining Sector. The National Directorate of Mines administers the licensing process
within the Ministry.
The requests are submitted in conformity with existing regulations of the Mines and
should:
National Directorate of Mines / National Directorate of Geology 37
Diamonds in Mozambique Potential Areas
(a) be formulated in an application format on legal terms with additional fiscal stamps as
indicated in Appendix I, for each type.
(b) be addressed to the Minister and submitted to the National Directorate of Mines.
(c) contain or be accompanied by all the elements indicated in the Mine Law Regulation.
If the applicant decides to withdraw the application, he may do so in writing. Once the
application has been received in which the applicant’s objective is to be attributed
associated mineral or enlargement of coverage areas, the National Directorate of Mines
will publicise a notice in at least two local newspapers for a period not exceeding 8 days,
or a written communication to interested parties. The notice or communication should
announce the submission of the application, supplying detailed information regarding the
area and resources being requested and inviting all interested parties who may be
affected by the approval of the application to present their objections within a 30 days
period.
Appendix 1
PRICE-IST OF FISCAL STAMPS
1. PROCEDURE FEE in
Meticais
a) Prospecting and Exploration Licence 250 000
b) Reconnaissance Licence 150 000
c) Mineral Concession 500 000
d) Reception of Prospecting and Exploration Licence 50 000
e) Renewal of Reconnaissance Licence
* 1st Application 100 000
* 2nd Application 250 000
* 3rd Application 500 000
f) Renewal of Prospecting and Exploration Licence
* 1st Application 150 000
* 2nd Application 450 000
* 3rd Application 750 000
g) Renewal of Mining Licence
* 1st Application 500 000
* 2nd Application 750 000
* 3rd Application 1 000 000
h) Reconnaissance Licence for the enlargement of coverage areas 250 000
i) Prospecting and Surveyi ng Licence for the enlargement of 450 000
coverage areas
j) Mining Concession for the enlargement of coverage areas 500 000
k) Inclusion of Associated Minerals 250 000
l) Inclusion of Other Minerals 350 000
m) Transfer of Prospecting and Exploration Licence 1 500 000
n) Transfer of Mineral Concession 2 500 000
o) Transfer of Prospecting and Exploration Licence due to Death 500 000
p) Transfer of Mineral Concession due to Death 1 000 000
q) Application for Registry Certificate 25 000
r) Certificate 150 000
1. The payment of these fees is made through the use of fiscal stamps with
corresponding values
2. The values to be paid are subject to revision by a joint ministerial diploma of the
Minister of Finance and the Minister of Mineral Resources.
References
Diamonds in Mozambique
Potential Areas