Mozambique: Delta Trading group granted gold mining license in Manica

4 November 2008

Maputo, Mozambique, 4 Nov – The Delta Trading group of Mozambique has been granted a gold mining license in Penhalonga, Manica province (central Mozambique), and expects to start mining in 2009, the company’s technical director said in Maputo Monday.

Morais Lasse said that the Government granted license authorised Delta Trading to mine a non-specified amount of gold from the Monarch mine, but which he said was “millions of ounces.”

The first quantities of gold must be sold to the Bank of Mozambique according to the country’s laws.

If the Bank of Mozambique is not interested in buying the gold, Delta Trading will sell the gold on the foreign market, Morais Lsse said.

In order for mining to begin, as of 2009, the company has already invested US$8 million, and is expected to increase that value up to US$11 million in the first year of production, he said.

Morais Lasse noted that geological surveys were underway to assess the potential of the Monarch mine, adding that being located in the province with the largest mines in Mozambique provided guarantees for the project’s sustainability.

The Delta Trading group, which also imports rice and owns a higher education facility, will be the second company to be involved in gold mining in Manica province, where illegal gold mining is at high levels. (macauhub)