Expansion of Mozambique’s Mozal expected to include downstream industries

29 June 2009

Maputo, Mozambique, 29 June – The third phase of the Mozambique Aluminium Smelter (Mozal) is expected to include Mozambican industry downstream by reserving a percentage of production, a government source told Macauhub Friday in Maputo.

The source said that during the negotiations with the government to set up Mozal in Mozambique “no downstream industry was considered,” but now that the company is moving ahead with the second phase of expansion, “the government’s idea is for companies that work with aluminium to be able to negotiate directly with Mozal.”

A source from the Centre for Investment Promotion (CPI) told Macauhub that several proposals had been received from Mozambican and other business owners with a view to investing in factories to process the aluminium produced locally by Mozal.

Expanding Mozal into its third phase depends on the availability of energy to do so.

Due to the energy crisis affecting the countries in the Southern African Development Community (SADC), particularly South Africa, Mozal was forced to reduce its energy consumption by 10 percent. (macauhub)