Mineral resources Minister Esperanca Bias told Reuters that the government understood the pain the companies have been suffering from the declining coal prices

"We’re studying this," Bias said. "We are working on it to see what can be done from our side."

Bias said that the government will not offer any special concessions or tax breaks to the companies.

"We don’t believe that reducing tax will resolve the problem. We don’t think the tax system needs to be changed."

Mozambique is estimated to have over two billion tons of untapped recoverable coal reserves.

Bias noted that revised mining laws offered tax breaks to companies that intend to process minerals, including coal, in Mozambique.

"We’re not saying the additional value has to be brought by the mining companies.

"It would be other companies. But if the mining companies have other industries in their portfolio, why not them too?"