Mozambican government to increase mining industry inspections

16 September 2011

Maputo, Mozambique, 16 Sept – The Mozambican government plans to increase inspections of the mining industry given the rapid development the sector is undergoing in the country, said the deputy Minister for Mining Resources, Abdul Razak.

Cited by Mozambican newspaper Notícias, the deputy minister added that the government, alongside preparatory activities in the country, was also sending staff and technicians to be trained abroad.

“There is national capacity to inspect, but this needs to be increased because we will soon have more facilities and the need for more people to inspect the mining industry (…),” said Razak.

Mozambique’s high mining potential, mainly high quality coal and natural gas, has been internationally recognised and is of interest to international investors.

Investments in the coal sector over the last few years in Mozambique have totalled billions of dollars, notably those by Brazilian company Vale as well as Australia’s Riversdale and Minas de Revobué.

As well as these companies India’s JSPL, Midwest Mozambique and Osho Gremach Mining, and Eurasia Natural Resources Corporation, of Kazakhstan.

The recent discovery of significant reserves of natural gas in the Rovuma basin by US company Anadarko Petroleum, has put Mozambique on the world oil and gas map and has opened the door to the biggest foreign direct investment (FDI) ever carried out in Mozambique.

By the end of 2013, according to Anadarko’s projections, there will be enough data to decide on whether the liquid natural gas (LNG) project will go ahead. Estimates point to investment in the project will total US$15 billion in its first production module, which is expected to be completed by 2018. (macauhub)

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