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Further investment in Mozambique coal industry

World Coal,

Two coal mining contracts in the Moatize district of the Tete province, each lasting 25 years, have been approved by the Mozambican government.

Following a meeting, deputy minister of mineral resources, Abdul Razak, said the two contracts will be made public once they have been approved by the administrative tribunal.

Indian investment in Tete coal

One of the concessions was granted to the Indian company Midwest Africa, covering an area of 15,840 ha. 50 km from Tete city. Razak said the viability study of this area showed reserves of 480 million t of coal. 363 million t of this is metallurgical coal, with the remaining reserves thermal coal.

Total investment in this concession is estimated at US$ 1.4 billion. Coal production is expected to begin in 2019, with expected production rates of 1 million tpa metallurgical coal and 6 million tpa thermal coal.

Razak said the mine will employ 1320 workers in the production phase, providing the state with US$ 35 million/year in taxes.

The Mozambique state will hold a 5% stake in the mine, represented by the Mozambican Mining Exploration Company (EMEM)

Rio Tinto adds to Mozambique coal mining portfolio

The second mining contract was awarded to Rio Tinto-Mozambique, a local subsidiary of the Rio Tinto group.

This contract was bound to the Zambeze project, which lies 10 km from Tete city, covering an area of 9,700 ha.

Rio Tinto estimates it will invest US$ 3.3 billion in the project.

Production at the minesite should begin between 2023 and 2025, producing 7 million tpa of metallurgical coal and 5 million tpa of thermal coal. The Zambeze project will provide 1400 jobs to workers.

This is Rio Tinto’s second coal mining contract in the Tete province. Its first project is located at Benga, where an opencast mine is currently in production.

As with Midwest Africa, the Mozambican Government will hold a 5% stake in Rio Tinto’s Zambeze project. 

Edited from various sources by Sam Dodson

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