Mozambique: Steel and iron project may be approved this year

29 September 2008

Maputo, Mozambique, 29 Sept – The joint Mozambique-South Africa project for setting up an iron and steel production industry could be approved by the Government this year, according to Mozambican newspaper Notícias.

The newspaper added that the project would likely be set up on Mozambican soil, making use of existing potential, particularly availability of natural gas from Pande/Temane, water and a workforce.

The exact amounts being invested are not yet known and so far only an initial economic feasibility study has been carried out, which drew up a framework for the project, although it is estimated that the budget will be over US$1 billion, and the project may employ at least 500 people.

The national director of industry, Sérgio Macamo said, based on the economic feasibility study, that the project would need around 300,000 of iron ore and 38 million gigajoules of natural gas to operate.

Macam said that, at least on a political level, construction of the industrial unit had been accepted since last year, since the annual bilateral summit of the heads of state of Mozambique and South Africa.

As well as approval, from the Mozambican government, of the outline of the project’s gas supply, negotiations are underway for supplying it with raw materials, specifically the iron ore that will be imported from South Africa. (macauhub)