Midwest Africa and the Rio Tinto group plan to invest over US$4.7 billion in coal mining in Tete province, Mozambique, under the terms of mining contracts signed Thursday in Maputo, Mozambican daily newspaper Notícias reported.
Midwest Africa Ltd (MAL), an Indian-owned company base din Mauritius, has plans to invest US$1.416 billion in Ncondezi whilst Anglo-Australian group Rio Tinto will invest US$3.3 billion in its “Zambeze” project.
The feasibility study for the Midwest Africa project found estimated reserves of 453.92 million tons, of which 363.71 million are coking coal and 90.21 million tons are thermal coal.
Rio Tinto’s Zambeze project will be carried out in phases and the first is expected to mine 3.5 million tons, which will then be doubled to 7 million tons in the second phase. In a third phase production is expected to reach 12 million tons.
In both cases the companies have set aside 10 percent stakes for Mozambicans to be involved in the projects, 5 percent of which will be freely given to the Mozambican state and the remaining 5 percent will be sold to Mozambican individuals or companies. (macauhub)