Abstract
Government officials remain positive about the outlook for Mozambique’s
mining sector, but it is likely
to be affected by the global downturn and
falling commodity prices. Speaking at the World Economic
Forum in January
2009, Mozambique’s Prime Minister, Luisa Dias Diogo, said the
country’s economy
should grow by 6.5-7% in 2009, and that the
downturn would be countered by higher agricultural input
and aid flows.
The national director of Mining Resources, Fatima Momade, said in July 2008
that the
mining and oil sectors should be the primary drivers behind GDP
growth hitting around 15% by 2010 – it
is unclear whether this
figure has been revised. Momade was upbeat on the prospects for the Moma
and
Chibuto minerals projects and the Moatize coal project. Some US$217mn
was invested in the country’s
mining sector in 2007, up from
US$169mn in 2005, but it seems unlikely that this upward trend will hold.
The government is also taking steps to speed up the awarding of mining
licences by putting maps
detailing existing licence holders online. At
present, prospective miners must apply for mineral licences
from local
directorates, who then have to go manually search paper records to check
whether the area has
already been sold off; however, unconfirmed reports
in January 2009 suggest that the government may
cancel all mining licences
held by companies not mining the areas granted to them.
The government is
prioritising the provinces with the most mining activity (such as Manica,
Tete,
Zambezia and Nampula), but hopes to have the entire country mapped
eventually.
There are several high-profile mining projects underway in the
African nation, including Vale’s
US$1.5bn Moatize coal project,
Kenmare Resources’ US$450mn Moma titanium project and Corridor
Sands’ Chibuto heavy mineral sands project. However, reports at the time
of writing from the
Mozambique News Agency suggest that the latter project
may be put on hold for several years.
Since 2003, the mining industry of
Mozambique has attracted increased attention from the private sector.
Capital inflows have surged and a number of companies from countries such as
South Africa, Russia,
Brazil and India are buying stakes in mines
throughout the country, signifying the emerging importance
of
Mozambique’s mining industry in its economy. Direct investments in
mining increased from
US$101mn in 2004 to US$804mn in 2008, according to
the government. The diverse geology of
Mozambique offers a range of
minerals and metals including gold, uranium, titanium, coal and bauxite.
The Manica belt spanning western Mozambique is the primary source for the
country’s gold, copper, iron
ore and lead resources. High-grade
bauxite is also found here.
| 
View Cart
