Mozambique looks for partners for industrial projects

6 June 2007

Windhoek, Namibia, 6 June – The government of Mozambique is looking for investors to build the second aluminum foundry and other industrial projects linked to the Moatize coal mining project, the Mozambican minister of Mining Resources and Power, Esperança Dias said in Windhoek Tuesday.

On the sidelines of an international seminar on mining investment in Southern Africa in Windhoek, Namibia, the Mozambican minister said that the government was trying to “sell satellite projects” associated to the Moatize project which, at an investment of US$1.2 billion, is likely to be operated by Brazil’s Companhia do Vale do Rio Doce.

“we would like to have a second aluminum foundry in the center of the country and a cement factory, as there is a lack of cement in that region, as well as other industrial projects and we hope to find partners to develop them, ” Dias said.

Mining group BHP Billiton, the world’s sixth largest producer of aluminum, controls the only metal foundry in the country, located near Maputo.

Brazil’s Vale do Rio Doce, the world’s largest iron ore producer, has handed in a plan to develop Moatize and construction is expected to start soon, Dias said.

This mine, which was badly damaged during Mozambique’s civil war in the 1970s and 80s, has coal reserves of 2.4 billion tons, making it one of the largest deposits in the southern hemisphere.

Some of the coal will feed a 1,500 megawatt power plant and the remainder will be exported. The first production is expected to occur in 2010 and average production over the lifetime of the mine will be 26 million tons per year. (macauhub)