Premier African Minerals to exit timber concession in Mozambique

1 September 2017

The Premier African Minerals group plans to dispose of a timber concession held in Mozambique by TCT-Indústrias Florestais in order to concentrate on exploiting tungsten and lithium in Zimbabwe and potassium in Ethiopia, the company indicated in a statement released on Thursday in London.

TCT-Indústrias Florestais is a company controlled by the Premier African Minerals group, which in November 2016 acquired a controlling stake of 52 percent from Transport Commodity Trading Mozambique Ltd (TCTM) and GAPI Sociedade de Investimentos, against payment of US$2.1 million, subject to conditions.

The company has a licence to exploit limestone deposits in a 27 square km area and a forest concession of 24,812 hectares located in central Mozambique, with associated sawmill and factory to produce furniture and semi-finished products for export.

The statement specifies that although the group is still interested in the limestone deposits, the forest assets do not fit in the group’s current strategy, which is confirmed by the recent suspension of authorisations to fell trees and respective export licences.

The group highlights that the controlling stake was dependent on the allocation of tree-felling quotas by the Mozambican government, whereby the current interim period “provides an opportunity to renew the rights and obligations under the acquisition agreements, simultaneously maintaining a 50 percent stake in the limestone assets.”

The group’s management “is studying possible partnerships and/or the sale of its stake in the forestry business while maintaining interest in the limestone deposits.”

The Premier African Minerals Group controls a portfolio of strategic metal assets and agro-mineral projects in southern and western Africa. (Macauhub)