Taciana Peão Lopes, Paulo Ferreira, Márcio Paulo and Gisela Graça of Couto Graça & Associados in Maputo look at the natural resources sector
Between 1996 and 2012 Mozambique was one of the fastest growing non-oil economies in sub-Saharan Africa and this progress is likely to continue in the next years as a result of the development of extensive coal and natural gas resources.
The coal reserves are among the largest undeveloped resources of their kind in the world and mining companies are already in the process of developing world-scale thermal and coking coal mines.
Furthermore, recent offshore natural gas finds could make Mozambique one of the world’s largest exporters of natural gas. If estimates are correct, the natural gas reserves will rank Mozambique fourth in the world for natural gas reserves, behind Russia, Iran and Qatar.
The government is attracted to the idea of using public-private partnerships (PPP) to implement projects in the coal and natural gas industries, given the significant capital requirement of infrastructure investment and the lack of local technical capacity to manage and operate such investments.
One of the matters that have been under discussion regarding the exploitation of natural resources is the need for a sustainable exploitation and the social impact it may have.
The Mining and the Petroleum Laws currently in force as well as the draft minutes in discussion that will approve the new Mining and Petroleum Laws have certain general principles in respect to the matters above mentioned. Notwithstanding, following the need to establish a policy that can be used as a framework for the implementation of actions within the corporate social responsibility in extractive industries, the Mozambican Council of Ministers has recently approved the Policy of Corporate Social Responsibility for the Extractive Industry of Mineral Resources, through Resolution 12/2014, of 16th of May. Furthermore, being necessary to adjust the Policy of Mineral Resources to the dynamics and growth of the mineral resources industry, the Mozambican Council of Ministers has also approved the Policy and Strategy of Mineral Resources, through Resolution 89/2013, of 31st of December.
The aim of the Government of Mozambique with the approval of the Policy of Corporate Social Responsibility for the Extractive Industry of Mineral Resources is ensuring the benefits of the extractive industry in favour of the social and economic development of the Mozambican citizens, through the establishment of a fiscal regime which is fair for investors but also maximizes the returns to the state, the development of infrastructures, and encouraging the extractive industry to include in its investment plans policies and programmes of corporate social responsibility. Hence, the Policy of Corporate Social Responsibility for the Extractive Industry of Mineral Resources is based on the following objectives: (i) promoting the establishment of mechanisms that ensure the existence of corporate social responsibility programmes within the extractive industry of mineral resources, in order to contribute effectively for the reduction of poverty and for a sustainable development of Mozambique; and (ii) framing and coordinating pogrammes of corporate social responsibility in the objectives and programmes of development, specially the plans of local development. For the above mentioned objectives, the principles followed by the Policy of Corporate Social Responsibility for the Extractive Industry of Mineral Resources are the following: (i) human dignity, social stability and right to progress, (ii) law, transparency and responsibility, (iii) justice and equality, (iv) gender equality, (vi) consultation and participation, (vii) integration and complementarity, (viii) environmental responsibility and sharing of benefits, (ix) valorization and respect for culture, practices and local values, (x) integration with the policies and strategies of the government, (xi) alignment with international and regional rules, conventions and strategies and (xii) monitoring and evaluation.
The Policy of Corporate Social Responsibility for the Extractive Industry of Mineral Resources adopted the international standard ISO 26000 for Corporate Social Responsibility of the International Organisation for Standardisation.
Regarding the Policy and Strategy of Mineral Resources, its main aim is to ensure a sustainable and transparent management and exploitation of mineral resources so that its benefits contribute for an increase on the standard living of Mozambicans and for the economic transformation of Mozambique.
The principles of the Policy and Strategy of Mineral Resources are respect for the finite nature of mineral resources and an efficient and sustainable management of mineral resources, ensuring the sustainability of future generations, contributing for the local and national social and economic development, protecting the environment and conservation of bio diversity, commitment to prioritise the human development of Mozambicans, use of modern technologies environmentally safe and efficient, good governance, transparency, competitiveness and productiveness and investment in institutional capacity and inter institutional cooperation to ensure an inclusive and integrated development. The main objectives of the Policy and Strategy of Mineral Resources are the improvement of the geological and mining knowledge of the existing resources in the soil and subsoil, interior waters, territorial sea, continental shelf and exclusive economic zone, converting mineral resources into a major contributor for the industrialisation and development of Mozambique, optimising the production of the mineral resources, adding value to mineral resources, protecting the environment, promoting the participation of the private sector and the gender equality and ensuring institutional development.
Partner
Couto Graça & Associados
Maputo City
About the author
Head of the energy, natural resources and infrastructure practice.
Taciana Peão Lopes has 15 years of experience providing legal and regulatory advice to private companies, government agencies and state owned corporations throughout Mozambique. She has a solid understanding of PPP (public-private partnership) laws in Mozambique, which includes experience of initiatives such as BOT (build-operate-transfer), BOOT (build-own-operate-transfer), DBOOT (design-build-own-operate-transfer), foreign investment, project financing and public tenders in areas of mining, energy, oil and gas, transport, port, rail, tourism and commercial infrastructures.
Her main areas of work are oil and gas, energy, mining and infrastructure legislation and she is an expert on concession matters related to this sectors.
Taciana has been involved in the major infrastructure projects in Mozambique, namely public-infrastructure projects and other forms of public-private collaboration and private finance initiatives (PFI), having advised the two first PPP concessions in the country after the approval of the PPP Law.
Senior associate
Couto Graça & Associados
Maputo City
About the author
Paulo Ferreira has six years of litigation experience in civil, commercial, labour, and administrative matters, including in cases submitted to judicial and arbitration tribunals in which he acted as an advocate. He joined the energy, natural resources and infrastructure practice in 2011 and has been advising in the areas of infrastructures, energy, mining and natural resources.
Paulo’s experience includes:
• Negotiation, structuring of the transaction, drafting of legal instruments and agreements of theRessano Garcia Power Plant Project, in Ressano Garcia, a 140MW natural gas fired power station;
• Negotiation, structuring of the transaction, drafting of legal instruments and agreements of the Moatize Power Plant Project, in Moatize, a 600MW coal fired power station;
• Negotiation, structuring of the transaction, drafting of legal instruments and agreements of the Chokué Power Plant Project, in Chokué, a 40MW natural gas fired power station.
Senior associate
Couto Graça & Associados
Maputo City
About the author
Márcio Paulo has five years of experience in general corporate and commercial law and banking and finance fields.
In 2011 he joined the energy, natural resources and infrastructure where he has been advising in the areas of infrastructures, energy, gas and oil and mining.
Marcio’s experience includes:
• Negotiation, structuring of the transaction, drafting of legal instruments and agreements of the Ressano Garcia Power Plant Project, in Ressano Garcia, a 140MW natural gas fired power station;
• Negotiation, structuring of the transaction, drafting of legal instruments and agreements of the Moatize Power Plant Project, in Moatize, a 600MW coal fired power station;
• Negotiation, structuring of the transaction, drafting of legal instruments and agreements of the Chokué Power Plant Project, in Chokué, a 40MW natural gas fired power station.
Senior associate
Couto Graça & Associados
Maputo City
About the author
Gisela Graça has some years of experience in civil, commercial, labour, administrative matters, and academic research. She joined the energy, natural resources and infrastructure practice in August 2013 and has been advising in the areas of infrastructures, energy, mining and natural resources.
Gisela’s experience includes:
• Negotiation, structuring of the transaction, drafting of legal instruments and agreements of a Photovoltaic Energy Project in Nampula;
• Negotiation, structuring of the transaction, drafting of legal instruments and agreements of Renewable Wind Energy Project;
• Negotiation, structuring of the transaction, drafting of legal instruments and agreements of the Ressano Garcia Power Plant Project, in Ressano Garcia ( II) , a 200 MW natural gas fired power station;
• Negotiation, structuring of the transaction, drafting of legal instruments and agreements of the Búzi Power Plant Project, in Sofala, a 350MW natural gas fired power station.
