Mozambique | Gov’t prepares eight new contracts for coal mining

A conveyor belt unloads coal from a river barge

The government of Mozambique will sign eight new contracts for coal mining within two years, the Mozambican Minister of Mining Resources revealed  Wednesday in Maputo.
Minister Esperança Bias said that six of these projects will become operational “within 18 to 24 months,” while the remaining two will be authorized “soon,” one of which is related to an underground mine in Tete province, the region where all the projects are located.
The Mining Resources Minister, who was speaking at the 4th Mozambique Annual Coal Conference, which ended yesterday  in Maputo, also noted there were 1,773 mining titles in the country, of which 124 are in the coal sector, although only four of these are currently exploring coal.
Admitting that the drop in coal prices on international markets was affecting development of the Mozambican coal sector, Bias said the government was working towards reducing tariffs for transportation and logistics in the country, with a view to reducing businesses’ operating expenses.
Moreover, the minister called for mining companies to seek alternatives to export, mainly by focusing on the domestic market, announcing a drop in production tax (royalties), from 3 percent to 1.5 percent on coal that is used in Mozambique.
“We want to encourage the emergence of industries and the availability of coal can develop the economy,” she said, claiming later that “this reduction will mean that there is much more investment focused on industrialization,” of the country. MDT/Macauhub