The Mozambican government has approved requests made by the Obtala Resources group, a company listed on the Alternative Investment Market (AIM) of the London Stock Exchange, for two new forestry concessions, the group said Tuesday.
The two new concessions, covering a joint area of 117,618 hectares, are located in Cabo Delgado and Nampula provinces, from where the group expects to extract 8.994 cubic metres of wood with a high retail value.
In the statement filed with the market regulator, the group noted that the concessions, located less than 200 kilometres from port facilities, contained species such as African Blackwood.
The chairman of the group, Francesco Scolaro, said that production of railway sleepers was already a profitable business that employed over 300 people and added that, as well as processing wood for export, Obtala Resources had been contacted with a view to manufacturing furniture and other wooden items for the Mozambican market.
In a recent statement, the group announced it would supply a total of 33,200 sleepers to Vale Moçambique to improve rail facilities in northern Mozambique.
Montara Continental Corp, which is 75 percent-owned by Obtala Resources, will fulfil the contract and the group is in negotiations with the Mozambican subsidiary of Brazilian group Vale to increase the order. (macauhub)