Mozambique’s coal sector will come under growing pressure as weak global metallurgical prices continue, according to BMI Research in its latest report on investment opportunities in the African Mining industry. But growth in the coal sector will still be healthier that in the gold sector.
The research company expects the value of the country’s mining industry to grow 6% y/y to 2018 and contribute 3.3% of GDP by that date. This is despite the government announcing its intention at the beginning of last year to increase taxation on the sector, a move that may worry foreign investors.
“Although we expect the country to remain amenable to foreign investment and to maintain a broadly attractive business environment, this policy move in the mining sector will be a cause for concern amongst investors,” BMI Research said.
Yet the country remains a relatively stable and attractive place for foreign investors compared to neighbouring Zimbabwe: “Mozambique continues to pursue its goals of opening up its mining sector to greater foreign investment and boosting its competitiveness as a mining destination.”
Written by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/coal/27052015/mozambique-coal-industry-will-grow-to-2018-2332/