Annual Information Service
Africa Mining Report - Mozambique
|Published by||Roskill Information Services||Product code||357155|
|Published||annual subscription||Content info||57 Pages, 10 Chapters, 16 Tables, 11 Figures|
|Africa Mining Report - Mozambique|
|Published: annual subscription||Content info: 57 Pages, 10 Chapters, 16 Tables, 11 Figures||
After 16 years of post-independence civil conflict, Mozambique held its first multi-party democratic elections in 1994. Since then, the country has enjoyed relative stability and an upturn in the economy. Mining activities that stopped during the conflict resumed in earnest in the early 2000s.
The extractive sector currently represents less than 4% of economic activity but has scope to grow considerably. With recent exploitation of vast coal reserves in Tete, discoveries in Niassa, and world -class natural gas deposits in the Rovuma basin, the mining and natural resources sectors are poised for growth. In the period between 2010 and 2015, over US$10Bn was invested in these sectors - with a further US$34Bn set to be invested to 2020.
The recent discovery of large reserves of minerals resources, combined with ongoing reforms and subsequent improvement of the business climate in Mozambique, provide good opportunities for the transformation of the country into a middle-income nation. The country is host to gold, copper, nickel, iron ore, bauxite, graphite, rare earth minerals, lithium, bismuth and antimony, as well as world-class coal deposits and both onshore and offshore natural gas deposits. The new mining law and petroleum law have provided clarity and transparency, and Mozambique possesses huge potential to provide both the power and water resources necessary to develop the mining industry.
However, there are current downside risks to the mining sector in Mozambique, most notably the lack of proper infrastructure, which results in an inability to meet the demands of the mining sector. Falling global commodity prices, coupled with infrastructure bottlenecks associated with connecting the hinterland areas rich in natural resources to the ports, has delayed the unlocking of the true value of the country's natural resources riches.