Government of Mozambique sells stake in mining project on the stock exchange

12 December 2017

The government of Mozambique plans to sell the 10% stake it owns in the Chiuta iron ore mining project, in Tete province, on the Mozambican stock exchange (Bolsa de Valores de Mozambique – BVM), announced on Monday in Maputo the Minister of Mineral Resources and Energy.

Minister Letícia Klemens said at the end of the ceremony to sign the mining contract with Capitol Resources, the Mozambican subsidiary of Australian group Baobab Resources, that the government intends to dispose of the stake but gave no further details, according to daily newspaper Noticias.

The chief executive of Baobab Resources, Ben Jamens, said that by setting up this vertically integrated mining and steel project, Mozambique could become a regional exporter of steel.

This project will require an investment of approximately US$20 million and is expected to create 100 direct jobs, 90% of which will be taken up by Mozambicans.

Representatives of three Chinese groups – Magang (Group) Holding Company Limited (Masteel), Shanxi Zhangze Electric Power Co., Ltd and Sinosteel Corporation, expressed an interest in participating in this project during an audience granted by the minister of Industry and Trade, Max Tonela. (macauhub)