Mozambique | Business and Economy News

[alama]

Rio Tinto group starts exporting coking coal from Mozambique
JUNE 26TH, 2012 NEWS

Anglo-Australian group Rio Tinto has started exporting coal mined at the Benga mine, in the Moatize district of Mozambique’s Tete province, after the Genco Loire ship set off from Mozambique Monday carrying 35,000 tons of coking coal, Mozambican newspaper Notícias reported.

The newspaper said that the coal was carried to the port of Beira along the Sena railroad on 20 trains, which had been carrying coal from Moatize since 27 April.

Dough Ritchie, chief executive of Rio Tinto Energy, said that exporting the first lot of coal, “is an important moment for the phased development of our resources such as first quality coking coal in Mozambique.”

The Rio Tinto group has so far invested over US$120 million in this operation in Mozambique and this year plans to spend a further US$160 million, as well as another US$250 million to relocate people currently living in areas covered by its project.

Due to current infrastructure problems in the Zambezi basin, Rio Tinto is negotiating with state port and rail company Portos e Caminhos de Ferro de Moçambique to build a branch line between the Moatize railway station and the Benga region by 2015.

Five years later – by 2020 – the company expects to be mining an average of 50 million tons of coal per year at Benga, a figure which is dependent on good quality road and rail facilities reaching as far as the production area.

By 2017 the Benga mine will have a power plant fired by coal slag mined by Rio Tinto, and the power produced there may also supply other parts of the country. (macauhub)

http://www.macauhub.com.mo/en/2012/0...om-mozambique/

[alama]

Brazilian company Medabil to supply metallic structures for Nacala airport, Mozambique

JUNE 26TH, 2012 NEWS
[B]Mozambican state airport manager Aeroportos de Moçambique (AdM) has started importing metallic structures from Brazil for the project to convert the Nacala airbase into an international airport, which is being carried out by Brazilian construction group Odebrecht, Mozambican newspaper O País reported.]

The metallic structures – specifically 1,000 tons of pillars, joists and tiles, Will be supplied by Brazilian group Medabil (http://www.medabil.com.br/), which has been sub-contracted by Odebrecht.

According to the newspaper, the first load of metallic structures has been loaded at the Brazilian port of Rio Grande, and on 29 June the first shipment will be sent to Mozambique.

The metallic structures are expected to arrive in Nacala in July when they will be assembled at the future international airport. A technical team from Medabil will supervise the construction process.

Construction work at Nacala airport is due to end in July, 2013, and at the moment work to level the ground is underway, particularly in the area of the future runway and the airport apron. (macauhub)

http://www.macauhub.com.mo/en/2012/0...rt-mozambique/

[alama]

Natural gas reserve discoveries continue in Mozambique

JUNE 26TH, 2012 - Large new natural gas reserves continue to be discovered in Mozambique, attracting an increasing amount of international attention to the country’s energy sector and particularly to the Rovuma basin, according to the Economist Intelligence Unit.

“Industry observers have described the rate and size of discoveries in the area [of the Rovuma basin] as the biggest and the most significant in recent years,” said the EIU in its latest report on the Mozambican economy.

In the “prolific” basin of Cabo Delgado province (northern Mozambique), the most recent discoveries were made by Anadarko Petroleum and by Italy’s ENI.

Whilst Anadarko, on 15 May announced the discovery of over 20 trillion cubic feet of gas, increasing its previous estimate for reserves in the area, ENI almost at the same time announced it had found reserves of 40 trillion cubic feet.

Partly due to increasing attention on gas in the Rovuma basin, Royal Dutch Shell and Thai oil group PTT are vying for control of Irish company Cove Energy.

Shell has offered US$1.7 billion for Cove, which is US$200 million less than PTT has offered, but may still increase its offer, given that it is trying to boost its presence in the emerging East African energy sector, the EIU said.

One of the giants of the industry, Shell is also “interested in buying other exploration assets from ENI in Mozambique,” it said.

The Mozambican state is also expected to benefit from the “fight” for Cove, as it recently established a capital gains tax in an effort to tax mergers and acquisitions.

Mozambique’s newly established position as a global energy producer involves an investment of almost US$68 billion, which is more than five times the country’s GDP in 2011.

An investment of US$18 billion, which would be the biggest ever in Mozambique, is being planned by US oil company Anadarko Petroleum in a unit for processing and exporting natural gas.

Other large international groups such as Malaysia’s Petronas and South Africa’s Sasol, are also involved in the development of the natural gas industry in Mozambique.

According to the EIU, the economically positive period in Mozambique is also being felt by the country’s biggest port, in Maputo, which saw traffic increase by 30 percent last year, and this year is expected to total 14 million tons.

Volume is expected to total 40 million tons in the next six years, following an expansion project that is now underway costing US$1.7 billion.

The EIU expects Mozambican economic growth of 8 percent in 2012 and 8.5 percent in 2013, then slowing to 8.0 percent in 2014 and 7.8 percent in 2015. (macauhub)

http://www.macauhub.com.mo/en/2012/0...in-mozambique/

[Paperyostrich]

Just out of intrest, how big is the area in which all of this gas is being discovered, is it across the whole coastline of the country or only a small part of it?

[alama]

Now it's being discovered on the coast of Cabo Delgado Province only.
https://maps.google.com/maps?q=cabo+...ed=0CAgQ8gEwAA

[alama]

...

Seed company Empresa Sementes de Moçambique under State control once more

JUNE 29TH, 2012 NEWS
The Mozambican state once again owns 100 percent of seed company Sementes de Moçambique (Semoc) after the government bought all the shares previously owned by Mozambican private shareholders, Mozambican newspaper Correio da Manhã reported.

The newspaper also reported that the government decision was intended to ensure that Mozambique stopped importing seeds as of 2013, according to a source from state stake-holding company Instituto de Gestão das Participações do Estado (Igepe).

As part of the same strategy, in 2011 the government spent around 14 million meticals on buying four refrigeration units and installing them at the Semoc unit in Chimoio, Manica province.

Semoc now has a cold storage system made up of eight refrigeration units, four of which were financed by the Agriculture Ministry’s Agrarian Development Fund, with a bulk storage capacity of 200 tons each.

Agriculture Minister, José Pacheco, recently announced that Mozambique, in the 2011-2012 season had re-launched seed production after Sementes de Moçambique was brought back from technical bankruptcy via a project supported by India.

Pacheco noted that Mozambique wanted to produce seeds for all basic food products, such as corn, cassava, leguminous plants, rice, and potatoes, and had drawn up a plan of action to turn the company around. (macauhub)

Mozambique to spend US$13 million on Prosavana projects

JUNE 29TH, 2012 NEWS
The Mozambican Agrarian Research Institute plans to spend 307 million meticals (US$13 million) over the next five years on Prosavana projects, Carolino Martinho, an executive from the institute said Thursday.

Financed by Mozambique’s partners in Prosavana, Japan and Brazil, the funding will be used to build and equip a laboratory to carry out experiments and train technicians.

Prosavana, which covers an area of 700,000 hectares, is being implemented in 12 districts of four provinces in northern Mozambique, Cabo Delgado, Nampula, Zambézia and Niassa and is intended to promote business-driven agriculture, with a specific focus on technology transfer. (macauhub)

http://www.macauhub.com.mo/en/2012/0...vana-projects/

Forestry company Ifloma plans to invest US$348 million

Mozambique-based forestry company Indústrias Florestais de Manica (Ifloma) plans to invest US$348 million in planting trees and construction of a paper factory in the provinces of Manica and Sofala, in central Mozambique, Mozambican newspaper Correio da Manhã reported.

Citing a government source, the newspaper said that 2011 had marked the start of the process of attributing land for planting the trees and for construction of the wood chip processing plant at the port of Beira, in Sofala province.

In Manica Ifloma plans to plant 73,000 hectares of pine and eucalyptus trees to feed its future paper factory, which will turn the company into the market leading paper company in Mozambique, the director of the factory, Cremildo Rungo told the newspaper.

Rungo also said that the project had already been drawn up and presented to the government, via the Sofala Provincial Agriculture Directorate, and was now awaiting approval from the Agriculture Ministry to launch.

Ifloma currently has a pine and eucalyptus plantation covering an area of 25,000 hectares, and has just finished planting 7,000 hectares of the two types of tree. (macauhub)

http://www.macauhub.com.mo/en/2012/0...in-mozambique/

[alama]

Development in Nacala, in Mozambique, requires building new dam

JUNE 29TH, 2012 NEWS
The Mozambican government is studying the possibility of building a new dam and water collection and treatment station along the Lúrio River, which separates the province of Nampula and Cabo Delgado, Mozambican daily newspaper Notícias reported.

The dam will be used to provide drinking water to the Nacala Special economic Zone (ZEEN), taking into account the investments and infrastructure that the region is receiving, specifically in Nacala-Porto and the neighbouring town and district capital, Nacala-a-Velha.

The project for a new dam on the Lúrio River, which is almost 100 kilometres from Nacala, has been suggested because the current dam, which is being rebuilt, is still not enough to meet expected demand from the two towns.

As well as this, another alternative that had been considered, which was building the dam along the Monapo River, was excluded because the river is already overused due to a dam built along it for irrigation of the Matanuska banana project.

Daniel Chapo, the administrator of Nacala-a-Velha, told Notícias that the ZEEN would need a large amount of good quality water, “the solution for which does not involve reconstruction of the current Nacala dam.” (macauhub)

http://www.macauhub.com.mo/en/2012/0...lding-new-dam/

Fuel terminal due to be built at port of Beira in Mozambique
JUNE 29TH, 2012 NEWS
Construction work for a fuel terminal at the port of Beira is due to begin, “soon” and take 15 months to finish, a source linked to the new facility told radio station Rádio Moçambique.

The new terminal, the environmental impact study for which was presented Thursday in the capital of Sofala province, will have a capacity of 85,000 cubic metres and will require investment of US$50 million.

Altogether four tanks will be built to store diesel, gasoline, and Jet A1 aviation fuel, although Rádio Moçambique did not name the company chosen to build the facility.

The port of Beira serves several land-locked African countries, including Zimbabwe and Malawi. (macauhub)

http://www.macauhub.com.mo/en/2012/0...in-mozambique/

[HansonHood]

Hello Alama,

I have been following your post and well done for all your efforts. I have some questions that I will to ask you pertaining the Mozambique Construction Industry.

What are your views about the sector?

With all the developments and ''going ons" What are the key topical issues influencing the sector that must be addressed?

Then, what do you think are the future trends in the sector?

Best Regards,

Hanson

[HansonHood]

Hello Alama,

I have been following your post and well done for all your efforts. I have some questions that I will to ask you pertaining the Mozambique Construction Industry.

What are your views about the sector?

With all the developments and ''going ons", What are the key topical issues influencing the sector that must be addressed?

Then, what do you think are the future trends in the sector?

Best Regards,

Hanson

[alama]

I will answer your questions via PM.

[HansonHood]

Thanks Alama,

I await your answers.

[Paperyostrich]

I was wondering if anyone has heard anymore about the Maputo Metro thats ment to conect Maputo and Matola, I heard about it once but since then I've heard nothing, is it still going to get built?

[GSantoz]

Originally Posted by alama

I will answer your questions via PM.

Hi Alama,

I'm interested as well on your view of the construction and real estate industry in MZ. Will you please share your insight?

Thanks in advance.

GS

[HansonHood]

Hi Alama,

[Ulpia-Serdica]

What are the current natural gas estimates in Mozambique in bcm?

[alama]

Mozambique has potential to be one of Southern Africa’s main tourist destinations


Mozambique has the potential to be one of Southern Africa’s main tourist destinations and the country’s tourism revenues and number of visitors have been growing, but it is still far from fulfilling its potential, according to the Economist Intelligence Unit (EIU).

In a recent analysis of Mozambique’s tourism potential, the EIU said that tourism had been identified by the Mozambican authorities and its partners as a key economic sector with huge potential for development, but which needed renewed efforts.

As the sector is labour intensive, its contribution to employment in the country could be bigger than that of capital intensive activities such as mining or other extractive industries, it said.

It could also be a source of diversification of economic growth, driving other areas such as transport and handicrafts, helping to diversify the country’s export base, which is currently 34 percent dependent on Mozal’s aluminium exports.

At the 3rd National Tourism Meeting, Prime Minister Aires Ali said that over 2 million tourists visited Mozambique in 2011, providing revenues of around US$230 million, which was significantly more than the US$197 million posted the previous year.

South Africa provides the largest group of tourists that visit Mozambique, accounting for 25 percent of visitors, followed by Portugal with 12 percent, according to figures from the City of Maputo Tourism Observatory.

With all of its potential and despite some positive developments in the last few years, the country, “needs to improve its basic infrastructure and make investment easier,” said the EIU.

The developments includes modernisation of the country’s airports, with a new terminal inaugurated and another for domestic flights in its concluding stages in Maputo, along with construction of new airports in Vilanculos, Pemba, Beira and Nacala.

Along with large natural reserve on the border with South Africa’s Kruger Park is expected to attract even more tourists, two tourist resort projects have also been launched to drive large investments, which are subject to international tender.

But tourism, according to the EIU, “still operates far below its potential,” particularly due to a lack of infrastructure and lack of international links, which means that the cost of flights is high.

There are also deficiencies in road and rail transport as private investment has fallen short of expectations due to investors fears about bureaucracy in the country and because more of the existing projects are on a small scale.

“Thus, despite many entries, tourist spending in Mozambique is very limited compared to other countries in the region, such as Tanzania or Mauritius,” said the EIU.

Despite this, the sector will continue to grow, mainly benefitting from a great influx of business trips related to expansion of the mining industry, whilst reforms are awaited. (macauhub)

...

[alama]

Asia may be the destination of natural gas discovered in Mozambique

JULY 23RD, 2012 NEWS

Asia may be the main destination of the natural gas found in the Rovuma basin, in Mozambique’s Cabo Delgado province, whose reserves of 100 trillion cubic feet are expected to start being explored in 2018, Mozambique’s Mining resources Minister said recently in Nampula.

Cited by daily newspaper Notícias, Minister Esperança Bias also said that whilst Asian markets were offering US$13 per kilojoule of gas Europe offered just US$8, and that these prices would remain unchanged given the high demand for natural gas in Asian countries.

The minister said that countries such as South Korea, whose company Kogas is one of the world’s largest buyers of natural gas, plan to make deals with Mozambique’s government in order to be involved in natural gas exploration in the East African country.

Kogas is involved in the gas surveying underway in the Rovuma basin as part of a partnership with Italian multinational ENI, which is also the largest distributor of natural gas in Europe.

Available figures show that between January and May of this year the companies involved in prospecting for natural gas in the Rovuma basin have discovered over 100 trillion cubic feet of gas.

Along with ENI and US company Anadarko Petroleum, other multinational companies such as Malaysia’s Petronas and Norway’s Statoil also operate in the Rovuma basin.

Petronas and Statoil are currently preparing to drill wells over the next few months, which may lead to new natural gas discoveries in the Rovuma basin. (macauhub)

http://www.macauhub.com.mo/en/2012/0...in-mozambique/

Fitch Ratings raises Mozambique’s sovereign debt outlook

Credit rating agency Fitch Ratings Friday raised its outlook on Mozambique’s sovereign debt from stable to positive, due to more prudent fiscal and monetary policies that the country has implemented over the last decade.

In the same report the agency, which noted the country’s high growth levels and even higher projected growth due to exploration of natural resources, kept Mozambique’s long term debt rating at “B+” with a stable outlook and the short term rating at “B”.

Noting that the fastest growth would be bolstered by coal mining, as Mozambique may become one of the largest African coal producers, it said that expansion of the mining industry would be a new source of revenues for the State and would help to diversify export products and attract foreign direct investment (FDI).

The recent discovery of large deposits of natural gas in northern Mozambique, in the Rovuma basin, is also expected to give a significant push to tax revenues which, as they are only expected in the long term, were not included in the Fitch analysis.

In its statement the agency noted the progress made by the Mozambican government in its macroeconomic management and consequent growth of the economy and added it was necessary to complement this with improvements to the business climate as well as reducing levels of poverty.

According to Fitch Ratings, Mozambique’s budget deficit is expected to remain high at around 6 percent over the next three year due to increased social and capital expenditure, which will be partially offset by an increase in tax revenues from coal mining and exports. (macauhub)

http://www.macauhub.com.mo/en/2012/0...-debt-outlook/

[alama]

Anti-retrovirus medication factory in Mozambique starts packaging drugs produced in Brazil

The future anti-retrovirus drugs factory in Matola, on the outskirts of Maputo, Saturday began packaging, storing, quality control and distribution of medication, mainly nevirapine, produced in Brazil, the Mozambican press reported.

The factory was set up with the involvement of the Drug Technology Institute (Farmanguinhos), of the Oswaldo Cruz Foundation (Fiocruz) and the official laboratory of the Brazilian Health Ministry, and is part of a cooperation programme between Mozambique and Brazil.

The two governments are making efforts for the factory to start producing medication in Mozambique by the end of this year, when the facility will be inaugurated.

The project for the anti-retrovirus drugs in Maputo has been planned for over four years, but only on 22 December last year did Mozambique and Brazil sign the agreement for it to be built. It is the first facility of its kind to be built in Africa.

Initially production will mainly meet demand in Mozambique, which has a high HIV/AIDS rate (around 2.5 million people or 11.5 percent of the population), but a low level of treatment (anti-retrovirus medication only reaches 260,000 people infected with HIV).

Total investment in the factory is estimated at 200 million reals (US$99 million), shared by the Brazilian government and private companies such as Brazilian mining giant Vale. (macauhub)

http://www.macauhub.com.mo/en/2012/0...ced-in-brazil/

[Kangaroo MZ]

Awesome news !!?!
Alama, parece-me q o gov assinou ontem o acordo sobre a construccao da ponte Maputo-Katembe, o projecto total custara 700 bilioes de dolares norte-americanos!
Finalmente saiu do papel e ja vai ser uma realidade!

[alama]

Tas a falar disto aqui, nem?

Funds for Maputo-Katembe bridge guaranteed

(2012-07-20) With the signing on Wednesday in Beijing of an agreement between the Mozambican government and the Chinese Exim Bank, the funds are now guaranteed to build a bridge across the Bay of Maputo, connecting central Maputo with the district of Katembe.

According to a source in the Finance Ministry, cited in Thursday’s issue of the Maputo daily “Noticias”, the loan from the Exim Bank is for 681.6 million US dollars, which is 85 per cent of the total cost (725 million dollars) of the project.

As for the rest of the money, 10 per cent is in the form of a soft loan, also from the Exim Bank, and five per cent come from the Mozambican state budget.

The bridge will be built 48 metres above the bay, thus ensuring that ships of any size can enter and leave Maputo port at any time of day. The bridge will have two carriageways and a total length of 2.7 kilometres.

The project includes not only the bridge, but the construction of 120 kilometres of road from Katembe to Ponta de Ouro, an important tourist resort on the border with the South African province of KwaZulu-Natal.

The bridge will come as a great relief to people who live in Katembe , but work or study in Maputo. Currently they are obliged to queue for a ferry service across the bay.

The bridge will make Katembe a much more desirable place to live. Its population is expected to expand from the current 20,000 to perhaps as many as 400,000 in the next two to three decades. Many of these people will doubtless move from the more overcrowded neighbourhoods of Maputo.

(Source: AIM)http://www.clubofmozambique.com/solu...25442&tipo=one