Australian groups Baobab Resources, via its Mozambican subsidiary Capitol Resources, is expected to invest US$1 billion to build a pig iron factory in Tete province, said director Iain Plews.
Speaking to newspaper Diário de Moçambique, Plews said that construction of the factory in the Moatize district would begin at the end of 2015 and that it would start operating in 2016.
The decision to go ahead with construction of the pig iron factory follows confirmation of the existence of 750 million tons of iron ore in the concession area of that province, which is valid for 25 years.
According to Plews the factory is expected to cost over US$1 billion and will have a production capacity of 1 million tons of pig iron per year.
“We believe that this industrial project will make a significant contribution to Mozambique’s development,” said Plews. (macauhub)