Yara Group announces investment of US$2 billion in Mozambique

3 November 2017

Norwegian group Yara is analysing an investment of US$2 billion in construction of a factory in Mozambique, and is considering the entry of more partners to share costs, Chief Executive Svein Tore Holsether told Reuters in Oslo.

In July last year the group signed a memorandum of understanding for the production of fertilizers from natural gas extracted in the Rovuma basin, Cabo Delgado province, northern Mozambique with the Mozambican Ministry of Mineral Resources and Energy.

This agreement follows the results of an international public tender to award of a portion of the natural gas to be extracted in the future, and Yara International was one of the three winning companies, along with Shell and GL Africa Energy.

The Norwegian company requested to be awarded 80 million to 90 million cubic feet of gas per day for annual production of 1.2-1.3 million tonnes of fertilizers (containing ammonia and urea) and 30 to 50 megawatts of electricity.

The group’s CEO also told Reuters there is no schedule for construction of the fertiliser plant, but said negotiations for the project were ongoing in Mozambique. (macauhub)