Thousands of jobs lost in Mozambican mining industry

18 August 2016

Mining companies operating in the Moatize coal basin in Mozambique’s Tete province, have eliminated at least 4,000 jobs since 2015 due to a drop in coal prices on the international market, said a provincial official.

Portásio Aurélio, head of the Department of Mineral Resources of the Tete Provincial Directorate of Minerals and Energy Resources, told Mozambican daily newspaper Noticias, that Vale Mocambique, a subsidiary of Brazilian group Vale, was the company that had fired more Mozambican workers, with 2,348 of the 3,937 jobs lost.

In the same period Vale Mocambique fired 520 foreign workers, of a total of 535 that are involved in coal mining across the province.

Aurelio also said that if the current situation does not change in the near future, some of these mining companies are at risk of losing the investments made, particularly in processing units and logistical ore transport, among others.

In the first half of the year coal mining yielded taxes on production in the amount of 166.3 million meticais of 5.591 billion forecast for the whole of 2016. (macauhub/MZ)