Mozambique: Over US$200 million invested in mining sector between 2001 and 2007

25 August 2008

Maputo, Mozambique, 25 Aug – Mozambique’s national mines director, Fátima Momade, said Friday that over US$217 million had been invested in the Mozambican mining sector between 2001 and 2007.

“This is a great increase, as we have to remember that in 2001 we had investment of around US$30 million. We therefore think that mining activities are developing according to the market’s own demand and this is being driven by last year’s approval of the fiscal law,” she said.

Momade also noted that many companies were showing interest in entering the mining sector.

“In 2001 we had 140 requests, but now that ahs risen to 1,100. It is a dynamic activity and every day we receive requests for prospecting, surveying licenses and mining certificates,” she said.

The national mines director said that currently 42 companies held coal licenses, 95 percent of which were based in Tete and the remainder in Niassa province.

“Coal mining is still beginning, but we are counting on it to see an increment in production and export in Mozambique, not only in the mining itself, but mainly in increasing our Gross Domestic Product (GDP),” Momade said.

She also said that as well as coal, other areas of the mining sector were seeing strong growth.

“For example, we have the heavy minerals at Moma, which have already begun exporting and we already have significant revenues from that project, we also have the areas of Tantalite, which have also started exporting, as well as smaller precious metals and gems projects that are also producing. As well as taxes on the surface, those projects are paying taxes on production. We are talking about figures of 3 million meticais that will reach our coffers this year,” Momade said.

In terms of coal, the chief executive of state rail and port company, Portos e Caminhos de Ferro de Moçambique (CFM), Adelino Mesquita, recently said that an increasing number of companies licensed for exploration and/or export were vying for exclusive use of the Sena railroad, which together with the port of Beira are part of the natural logistics transport chain for coal. (macauhub)