Mozambique: Government Suspends All Mining Licences in Manica Province


Executive Summary

On October 2, 2025, the Mozambican government announced the immediate suspension of all mining licences in Manica province. The decision, broadcast via local media, cites widespread river pollution and threats to potable water sources as the primary justification. This move underscores mounting pressure on authorities to balance environmental sustainability with economic reliance on the mining sector.

Key Developments

• Immediate Suspension: All licensed mining operations in Manica province must halt activities pending further regulatory assessment.
• Environmental Concerns: Authorities reported that uncontrolled effluent and sediment discharge from artisanal and semi-industrial mining has contaminated rivers, threatening drinking water and agriculture.
• Scope of Impact: The suspension affects both artisanal miners and larger commercial operators. Manica province is a hub for gold and semi-precious mineral production, hosting dozens of licences.
• Compliance Review: The government stated that new environmental audits and stricter licensing conditions will be imposed before operations can resume.

Strategic Implications

1. Economic Impact

• Output Losses: Halt in production could reduce provincial export revenues significantly; artisanal gold exports form a sizeable share of local livelihoods.
• Employment Risks: Thousands of local workers dependent on mining face disruption. This could trigger social unrest or increased illicit mining.

2. Operational and Investor Risks

• Higher Compliance Costs: Firms will face tougher environmental requirements, new audits, and potential licence renegotiations.
• Regulatory Uncertainty: The blanket suspension signals an unpredictable policy environment. Risk premiums for investors in Mozambique’s mining sector may rise.

3. Security and Informal Mining

• Illicit Mining Surge: The suspension may push operators underground, boosting unlicensed extraction. Such activity often ties to cross-border smuggling networks, heightening governance and security challenges.
• Community Tensions: Villages reliant on artisanal mining income could see protests against authorities, creating a flashpoint for local instability.

4. Environmental and Social Governance (ESG)

• Positive International Perception: The decision aligns with global ESG pressures, potentially improving Mozambique’s image among international donors and climate advocates.
• Domestic Trade-offs: However, lack of immediate alternative employment and mitigation plans may undermine the legitimacy of the measure at the local level.

African Security Analysis (ASA) Assessment

Mozambique’s suspension of all mining licences in Manica represents a decisive but high-risk intervention. While it directly addresses escalating environmental degradation, the decision introduces significant short-term socio-economic shocks and long-term regulatory uncertainty.

• For Operators: Expect heightened compliance burdens and permitting delays. Foreign investors should anticipate new environmental audits as prerequisites for reactivation.
• For Local Communities: The measure risks increasing poverty and illicit mining unless the government rolls out compensatory programs.
• For International Stakeholders: The move signals Mozambique’s intent to prioritize environmental protection, but without a comprehensive regulatory framework, risks of governance slippage remain.

Bottom Line: The suspension is a double-edged sword — mitigating environmental harm while amplifying investor risk and local socio-economic strain. Prolonged shutdown without transparent remediation plans could erode both industry confidence and community stability