The company Obtala Resources welcomed the adoption by the government of Mozambique of a two-year moratorium on simple licensing for logging, according to a statement issued Wednesday.
In a statement, the executive vice president, Kevin Milne said the company had received inquiries from shareholders regarding the recently announced decision of the Mozambican government.
Under Mozambican law there are two types of logging license, the first being a simple license that allows operators to log without obligatory processing in the country.
The second license is a forestry concession contract, which involves much larger areas and requires concessionaires to respect limits on logging and initial wood processing in the country.
Milne said the government of Mozambique had introduced the moratorium only for simple licenses, and thus did not affect the company, which has several forest concessions.
Obtala Resources is a Guernsey-based company that focuses its business on sub-Saharan Africa, both in agricultural production and in exploration of forest resources, and is present in Tanzania, Mozambique and Lesotho. (macauhub/MZ)