Mining operations in Mozambique face a challenging operating environment due to poor public infrastructure, inefficient logistics networks, equipment supply constraints, and local distrust of foreign investors. However, the Chamber of Mines of Mozambique (CMM) believes that despite these challenges, the industry offers significant investment and collaboration opportunities. The country's key minerals include coal, graphite, heavy minerals, and gemstones.

The Covid-19 pandemic has exacerbated logistical challenges, particularly for graphite mines struggling to secure shipping containers for transporting resources to overseas ports. Mozambique's underdeveloped manufacturing industry and emerging mining sector require the importation of equipment, machinery, spare parts, and consumables, resulting in delays due to strict customs processes and poor physical infrastructure.

To address these issues, the government is seeking external funding to repair the country's main highways. The mining industry benefits from exemptions for importing equipment and machinery duty-free, but reimbursement of value-added tax (VAT) remains a significant challenge. Mozambican operations pay VAT on imported products, which can be a lengthy and complicated process to claim back.

Another challenge is the perception that mining companies repatriate most of their revenues without investing in local development. Building trust and emphasizing the long-term benefits of foreign investments, such as industry development and employment opportunities, are crucial.

The CMM aims to focus on sustainability, representing the interests of all industry members, including smaller mining operations and artisanal miners. Collaborative efforts with the German Chamber of Commerce and Industry have contributed to the CMM's growth and knowledge transfer through workshops and outreach programs. The chamber is also joining the Mining Industry Association of Southern Africa to gain insights from neighbouring countries' experiences.

By addressing challenges, promoting sustainable practices, and participating in regional discussions, the mining industry in Mozambique can overcome obstacles and contribute to economic growth and development.