Date: 11 December 2007 MCLI takes pleasure in forwarding to you ...

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oard of directors to substitute Portuguese appointee Joaquim da Silva Correia, in linewith the company’s new shareholding structure.The Mozambican state now holds 85 per cent of the shares, and the Portuguese state 15per cent. Previously Portugal owned 82 per cent of HCB, and so there was always aPortuguese majority on the board, and a Portuguese chairperson.There are six Mozambican directors (Manuel Tome, Gildo Sibumbe, Max Tonela, IsabelGuembe, Domingos Torcida and Rosaque Guale), and two Portuguese directors(Fernando Marques da Costa and Alvaro Pinto Correia). (the Investor,www.clubofmozambique.com)Australian mining company says coal production to begin in 2010Coal production in Mozambique's Tete province is expected to be launched in 2010,according to concession-holder Riversdale Mining, of Australia. Riversdale is back byIndia’s Tata Steel, who recently invested US $100 million in the acquisition of a 35percent stake in two mining projects, in Benga and Tete.The Benga license, in the district of Moatize, Tete province, is estimated to have reservesof 1255 billion tons of coal, according to figures published by Riversdale.Last week, ArcelorMittal, the world’s largest steel maker, announced that it would gointo coal production in Mozambique, with an initial investment of US$2.5 million whichhas given the company a 35 percent share in Rio Minjova Mining and Exploration, in ajoint venture with Black Gold. (the Investor, www.clubofmozambique.com)Government to analyze tourmaline reserves in ManicaThe illegal mining for tourmaline stones, both by Mozambicans and by foreigners, hasled the Mozambican Ministry of Natural Resources to send a ream of geologists to thedistrict of Bárue, in Manica province, according to newspaper Notícias.In a dispatch dated November 12, the Natural Resources Minister, Esperança Biasordered the suspension of all activities related to the sale of precious and semi-preciousstones in the Bárue district, as well as issuing licenses for exploration in the region.The move, according to the dispatch, “aims to reorganize the processes for licensing, aswell as improve the system for inspection of license-holders for selling mining productsfrom the Bárue district." (macauhub)LEGAL NEWS BY MOZLEGALNew Regulations for Tourism PublishedLast week, new regulations for tourism activities were officially announced to the generalpublic. These regulations, all of which have officially entered into force, cover: TourismEntertainment, Tourism Transport, Tourism Accommodation and Restaurants and theRight to Periodic Habitation.The Regulation of the Right to Periodic Habitation establishes the conditions for the useof time share and fractional ownership in Mozambique, along with other forms of touristaccommodations. It establishes also the procedures to be followed and the requirementsfor the setting up of legal fractional systems for tourism developments such as priorapprovals and financial guarantees, among others. This new regulation undoubtedlyincreases opportunities for tourist accommodation projects and making the conditions fortourism investment more flexible and secure. For more information, contact Mozlegal’sElisabete Silva, elisabete.silva@mozlegal.com.Assembly passes new tax codes
The Mozambican parliament, the Assembly of the Republic, last Thursday passed thefirst reading of a government bill amending the country's tax codes.Under the bill anyone who earns, in a year, up to 36 times the statutory monthlyminimum wage is exempt from income tax, thus annual incomes of up to 59,220 meticais(slightly less than 2,500 US dollars) will pay no tax.On higher incomes, tax rates begin at 10 per cent and rise to 32 per cent. Only incomes inexcess of 1,512,000 meticais (62,500 dollars) a year are taxed at the highest rate.Pensions too will be entirely exempt from income tax.But for the first time, interest earned on deposit accounts, and on income from securitiesquoted on the Mozambican stock exchange will be taxed (at a rate of 10 per cent). Thisexplains why, despite reducing the tax burden on most citizens, the government isconfident that the new income tax code will raise more money than the old one. (theInvestor, www.clubofmozambique.com).Value-added tax undergoes changes under the new tax codeUnder the new tax code passed by the Mozambican parliament last Thursday, the Valueaddedtax (VAT) has undergone alterations. The new code, however, retains exemptionsfor key industries. Thus the sale of sugar, vegetable oil and soap, and the import ofmachinery, spare parts and raw materials for companies making these goods will remainexempt from VAT until the end of 2010.But the VAT exemption on rent of buildings for industrial or commercial purposes hasbeen abolished, with the exception of buildings in rural areas. So as from January 2008,the owners of the vast amount of rented office space in Maputo will have to pay VAT atthe standard rate of 17 per cent. The bill slashes VAT by 60 per cent on public works,such as roads, bridges and dams. (the Investor, www.clubofmozambique.com)CAL offers companies specific training sessions on new labor lawFrom 17 August to 24 October 2007, the Labor Arbitration Center (CAL) held severalseminars, in Maputo and throughout the provinces, to raise awareness about the newLabor Law (Law No. 23/2007, of August 1), which entered into force on 31 October2007. The Minister of Labor, Maria Taipo, was present at the opening seminar onAugust 17, and the Vice Minister of Labor was present at the seminar in Inhambane.CAL also organized training courses on the Labor Law according to the needs of some ofthe center’s clients. We are available to our customers to organize training courses withintheir companies, in particular, training in the area of labor relations in accordance toneeds of the company and its employees. For more information, contact:cal@arbitrationmz.com.OVER THE BORDERRessano Garcia border post open 24 hours a dayMozambique's main border post with South Africa, at Ressano Garcia, will operate 24hours a day through the month of December and until 15 January.Making this announcement, the southern regional director of Mozambican Customs,Gonçalves Mandava, said the measure is intended to speed up the clearance ofmerchandise, and the movement of tourists and other travelers during the festiveseason.This, he added, means that the number of customs and immigration staff and policeofficers on duty at Ressano Garcia over the next month and a half must be increased. (theInvestor, www.clubofmozambique.com)
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Page 9 and 10: neighbors, because it doesn't want
Page 11 and 12: Mozambique’s industry has a weigh
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Page 15 and 16: The eldest son of former Mozambique
Page 17 and 18: Peasant farmers in Chibabava distri
Page 19 and 20: The gold mining and exploration com

Date: 11 December 2007 MCLI takes pleasure in forwarding to you ...

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