Mozambican state’s stake in mining projects expected to remain at between 5 pct and 20 pct

26 November 2012

The Mozambican state’s stake in mining projects in Mozambique is expected to remain at between 5 and 20 percent in order to attract investment, and there are no plans to increase this in a disproportionate way, said the chairman of Mozambican mining company Empresa Moçambicana de Exploração Mineira (EMEM).

Unlike what is happening in some African countries where there are calls for nationalisation of mining projects or for taking controlling positions in them, António Manhiça said that the Mozambican government aims to balance the interests of the Mozambican state with those of investors.

“In each project we have a stake of between 5 percent and 20 percent and we do not expect to see great changes to that.” Manhiça told financial news agency Reuters.

The chairman of EMEM noted that the government was aware of the huge investments needed to replace the infrastructure needed to support the coal sector, namely railroads and ports that were destroyed during the civil war that ended in 1992.

“We continue to call for creation of a business climate that attracts as much investment as possible,” he said, noting that a lot of effort was being made to convince foreign companies that their investment would not one day see the same outcome as in many other countries, in both Africa and other continents.

“This is an almost daily task,” noted the chairman of EMEM, a company set up in 2009 to manage the State’s and local interest in the mining industry by taking stakes in projects and the development of concessions up until the mining stage. (macauhub)