Mozambican government and Canada’s Rock Forage expected to sign mining agreement this year

9 August 2011

Maputo, Mozambique, 9 Aug – The signing of an agreement between the Mozambican government and the company awarded the international tender for the Chibuto heavy sands project in Gaza province, is due soon, according to Mozambique’s Mining Resources Minister.

According to daily newspaper Notícias, Minister Esperança Bias said that discussions about the “agreement of principles” were in their final stages and that it was expected to be signed this year.

Mining rights had been acquired by BHP Billiton from Corridor Sands, and the license was withdrawn in 2009 due to successive delays in starting the development of the mine.

After the government cancelled BHP Billiton’s license, which had given the company 100 percent of the mining rights on the project since 2006, the area was reserved for mining in 2010 and after this an international public tender was launched, which was awarded to Rock Forage Mining, a Canadian company.

The studies carried out so far show that the area has reserves of more than 72 million tons of ilmenite, exploration of which would take at least 30 years. (macauhub)