Mozambique: Regulatory Hurdles Continue to Hinder Operations of Dingsheng Minerals

Maputo — Operational disruptions, regulatory hurdles and destruction of five core production lines continue to hinder the operations of the Chinese-owned company Dingsheng Minerals, which mines heavy mineral sands, in Chibuto district, in the southern Mozambican province of Gaza.

As a result of this situation, over 100,000 tonnes of heavy mineral sands remain stranded for nearly three months.

Dingsheng minerals has a factory budgeted at 700 million US dollars, occupying an area of 3,000 hectares, consisting of two production lines with the capacity to process 10,000 tonnes of minerals a day (mostly titanium ores).

Heavy sands are deposits enriched with high-density minerals such as ilmenite, zircon, and rutile. These minerals are used in various industrial applications, such as the manufacture of ceramics, and pigments.

Beyond the physical destruction, the full resumption of operations remains blocked pending the restoration of the plant's water supply system and the acquisition of critical export equipment.

According to the Secretary of State for Gaza province, Jaime Neto, cited by independent newspaper "O País", the stockpiled minerals currently sitting at the processing yard cannot be shipped abroad until the finalization of crucial export licenses.

Compounding its operational woes, Dingsheng Minerals is facing renewed scrutiny from labour inspectors over safety and working conditions.

According to Neto, the authorities are preparing to establish a permanent presence at the site to monitor future operations and enforce compliance. The firm was fined approximately 285,000 meticais (about 4,460 US dollars at the current exchange rate) last year for failing to supply workers with essential personal protective equipment (PPE).

"While working conditions have shown gradual improvement following state intervention, regulatory oversight remains strict. Despite the prolonged three-month operational standstill, Dingsheng Minerals continues to pay its workforce", he said.

However, the company cannot restart production until it satisfies all state regulatory conditions, solves its licensing backlog, and fully repairs its damaged infrastructure.

Read the original article on AIM.