Maputo, Mozambique, 20 Aug – The Mozambican government has established a loss to the State from the Chibuto heavy minerals project after mining group BHP Billiton withdrew from it arguing that it was not viable, according to a statement from the Council of Ministers published in Maputo.
BHP Billiton, which held the exploration rights on the project until October 2009, had expected to set up an integrated open-face mining project, with concentration and foundry facilities in Chibuto to produce titanium and iron as well as rutilium and zircon.
However, the mining group decided that the project was not viable and brought it to an end in the pre-feasibility survey phase.
“The decree outlines that the project will be put in the hands of the State as the investors did not move ahead with the Chibuto heavy minerals project,” the statement said.
The government added that the surveys recently carried out on the concession showed that the heavy minerals in the area were of excellent quality. (macauhub)