Maputo, Mozambique, 4 Oct – Annual investment by companies, most of which are foreign, in Mozambique’s mining sector now totals US$1 billion as compared to just over US$20 million in 2001, said the National Mines Director, Eduardo Alexandre.
Cited by Mozambican newspaper Notícias, Alexandre noted that the exponential rise in investments in the sector was mainly due to the price of coal on the international market. In 2001 each ton of coal cost US$80 and now costs US$300.
According to projections over the next decade Mozambique can produce around 100 million tons of coal, to which Tete province is expected to contribute around 40 million tons.
So far, the Mozambican authorities linked to the sector have issued around 1,060 mining licenses.
“Most of the mining rights that we have issued are for coal, which is the sector that has attracted many investors. Secondly, in terms of investor appetite is the base metals area and, lastly, we have the construction materials sector that includes the limestone use to manufacture cement” said Alexandre.
The contribution of the mining sector to Mozambique’s Gross Domestic Product (GDP) is currently less than 3 percent, but given the currently untapped potential, not only of coal, the sector’s contribution could increase to 10 percent by 2020. (macauhub)