Timor-Leste Accelerates Mining Sector Development: Navigating Challenges and Opportunities

DILI, TIMOR-LESTE – Timor-Leste, a burgeoning nation in Southeast Asia, is actively fast-tracking the development of its mineral resources sector. Emphasizing robust regulatory frameworks to mitigate adverse impacts, the Timorese government is strategically balancing the exploitation of finite resources with long-term sustainable development goals. This endeavor is particularly critical given the substantial economic potential alongside inherent environmental and social risks associated with extractive industries.

The nation's commitment to establishing a resilient operational framework has been evident since mining legislation consultations commenced in 2013. This culminated in the enactment of Law No. 12/2021 in June 2021, which now serves as the foundational legal instrument governing all mining activities within the country. This legislation is meticulously designed to ensure sound governance, transparency, and accountability across the sector.

In a significant move, Timor-Leste launched its inaugural mineral exploration licensing round in March 2023, offering 49 concession areas that garnered considerable investor interest. This initiative was swiftly followed in September by the IX Constitutional Government's promulgation of six decree-laws for the extractive sector. Key among these was the establishment of the National Mining Authority (ANM), an independent body tasked with regulating and overseeing mining operations, and the redefinition of the state-owned mining enterprise as Murak Rai Timor, E.P. The ANM further solidified its operational presence by launching its website in January 2025, a critical step towards enhancing transparency and information accessibility for both the public and potential investors.

Key Players and Recent Developments

Following the 2023 licensing round, nine companies successfully passed eligibility screening, with four ultimately securing contracts in November 2023. Several prominent entities are now active within the sector:

• Company (Australia): Awarded three licenses in March 2024 for mineral exploration in Lautem, this Company subsequently announced significant manganese discoveries. Notably, Company and Murak Rai Timor, E.P. formed a joint venture in June 2024, signaling a collaborative approach between foreign entities and the state-owned enterprise. The Company also acquired additional areas in Baucau in September 2024 and successfully secured over $3 million for its drilling program in January 2025, which commenced in late May 2025 in Ira Miri.

• Company (Timor-Leste): As the sole non-Australian company to receive a license in the 2023 bidding round, this entity highlights local participation potential within the extractive industry. It previously held a license in 2018 for manganese samples in Oecusse.

• Company: Currently engaged in exploration for copper and other minerals in the Baucau and Viqueque regions, demonstrating a diversified approach to mineral prospecting across Timor-Leste.

• Company: Exploring for metals in Baucau, Manatuto, and Oecusse. The ANM licensed this Company for exploration in Oecusse and notably conducted a pre-mining cultural ceremony there in July 2024, underscoring the importance of respecting local customs in operational planning.

• Murak Rai Timor, E.P.: The re-established state-owned company was licensed in May 2024 to explore for metallic minerals in Bobonaro, Covalima, and Liquica. The involvement of this state-owned entity is expected to ensure national control over strategic resources.

• Company (Timor): Reportedly licensed in February 2025 for mineral exploration in Baucau.

• Company Ltd.: Also licensed in February 2025 for copper and gold exploration in Manufahi. This marks their first project outside Australia, with an ambitious drilling program slated to commence in April 2026.

Environmental Permitting and International Collaboration

Throughout 2024, the ANM demonstrated efficiency in its permitting process by issuing 30 environmental licenses, all for Category C projects, to various companies. These included licenses for Company, Murak Rai Timor, Elegant Marble Group, Company (Timor-Leste), Company, and Company Limited. The early integration of environmental assessments is crucial for mitigating potential adverse impacts of mining.

In March 2025, the ANM further expanded its reach, issuing eleven new Mineral Exploration and Evaluation licenses to Company (Timor), SIIC Unipessoal, Nova Energy Resources, and Company.

The prominent Australian Financial Review welcomed the fact that the majority of new mining licenses were awarded to Australian companies, indicating investor confidence and the potential for increased foreign investment in the sector. Furthermore, Portugal's National Energy and Geology Laboratory (LNEG) is collaborating on minerals research, including in Oecusse, highlighting international support and expertise in developing the sector. Additional information on mining activities through 2022 is also available in Timor-Leste's reports to the Extractive Industries Transparency Initiative (EITI), which underscores the nation's commitment to transparency in managing its natural wealth.

With a strengthening legal framework, enhanced institutional oversight via the ANM, and growing investor interest, Timor-Leste is well-positioned to advance its mining sector. The primary challenge moving forward will lie in the rigorous implementation of regulations, ensuring that mining operations are conducted responsibly, and that the economic benefits derived from these mineral resources genuinely contribute to the broad and sustainable well-being of the Timorese people.