The government of Mozambique approved a resolution authorising Capitol Resources, a subsidiary of Australia’s Baobab Resources, to carry out mining activities in the district of Chiúta, in the central province of Tete, announced on Tuesday in Maputo the spokesman of the Council of Ministers.

Spokesman Armindo Ngunga said that the resolution is intended to grant the company rights to carry out its activities in the region, including iron production and steel processing.

“The contract is valid for 25 years, can be renewed and is subject to the conditions set out, in accordance with the government’s plan,” he said.

Mozambican news agency AIM reported that the Capitol Resources project includes the construction of a plant for steel production and a thermoelectric power plant.

Meanwhile, five Chinese companies, with licenses for prospecting, exploration and mining plan to conduct studies to assess the size of mineral deposits in the Erati district, in the northern province of Nampula, Mozambique for exploration in the future.

The five companies intend to explore minerals that are abundant in the region, such as quartz, garnets, corundum, limestone, tourmalines, aquamarines, iron ore and gold. (macauhub)