Resource Sector Mozambique - Club of Mozambique
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Resource Sector
Mozambique
New Markets - New Opportunities
Published in 2018 by:
General figures (2016 by Worldbank) Population density: 37 people per km²
The Republic of Mozambique Rural Population: approx. 70%
Time zone: UTC+2 GDP per capita: approx.480 USD (Atlas
Official language: Portuguese Method)
Currency: New Mozambican Metical (MZN) Population growth: 2.9% p.a.
Capital: Maputo Prevalence of HIV, total (% of population
Land area: 801,590 km² ages 15-49): 12.3 %
Population: approx. 28 million Life expectancy at birth: approx.57 years
1
ECONOMIC
ECONOMIC DATA
DATA
Economic data
Resource Sector – Mozambique
After years of relative stability and growth, Mozambique is currently facing a
period of macro-economic turbulence. Unstable global prices, high partly unex-
plained foreign debt and strong inflation slowed down growth and led to a short-
age of forex. With adjustment activities on the way and negotiations with donors
and supranational institutions being held Mozambique’s economy should be back
on a more stable growth path from 2018 on. Nevertheless, business environment
reforms are urgently needed to attract more investment.
Mozambique
© GAUFF Engineering
2
Economic data 2012 to 2018
year 2012 2013 2014 2015 2016 2017 2018
Real GDP growth (%) 7.2 7.1 7.4 6.6 3.8 4.2 4.8
Origin of Growth
(%real change)
Agriculture 2.0 1.9 3.7 3.2 1.8 2.1 3.8
Industry 6.6 6.5 7.8 12.1 1.9 10.5 5.5
Services 10.3 7.8 9.0 7.0 5.3 3.0 5.0
Source: EIU 2017
Due to a political and macroeconomic crisis, growth has recently slowed down.
Yet, the prospects are good. After a decade with an average growth of above 7%
until 2014, GDP growth is expected to peak again in 2018/19. The mining sector
will play an important role mostly with direct investment (DI) coming from abroad.
Foreign direct investment peaked between 2012 and 2014 with a net inflow of
more than 30% of GDP much of it in the mining /natural resources sector. How-
ever, agriculture remains weak as a pillar for development and poverty reduction
and it does not contribute to growth, food security or job creation as it should.
For many years, Mozambique has been characterized by a chronic foreign trade
deficit with little diversified export products and few value addition efforts within
the country. Although some imports led to investment most of the trade deficit is
explained by consumption and did not contribute to more production or import
substitution.
3
ECONOMIC DATA
Foreign trade 2012 to 2018
Resource Sector – Mozambique
After years of relative stability and growth Mozambique is currently facing a
period of macro-economic turbulence. Instable Global prices, High – partly
unexplained- foreign debt and strong inflation slowed down growth and led to a
shortage of forex. With adjustment activities on the way and negotiations with
donors and supranational institutions being held from 2018 on Mozambique
economy should be back on a more stable growth path. Nevertheless business
environment reforms are urgently needed to attract more investments.
Economic data 2012 to 2018
year 2012 2013 2014 2015 2016 2017 2018
Mozambique
Exports fob (million USD) 3,856 4,123 3,916 3,413 3,351 4,643 4,390
Imports fob (million USD) 7,903 8,480 7,952 7,577 4,856 5,194 5,362
Source: EIU 2017
Exports:
The Main markets for Mozambican products in 2016 were:
The Netherlands 25.1%; South Africa 11.9%; India 12.4%;
With the main products: aluminium, electricity, coal, gas, tobacco, sugar, and gem-
stones.
Imports:
The main suppliers in 2016 were located in South Africa 39.3%; PR China 11.7%;
Bahrain 5.6%; the Netherlands 8.3%
With main products: petrol, bauxite, machines, pharmaceuticals, cars, rice, cereals,
and corn.
Investment
The investment climate in Mozambique is relatively stable, which does not mean
that it is good (see business environment). Nevertheless, investor confidence in
4
long-term project development is growing again, particularly in the extractive in-
dustries. In recent years, foreign direct investment (FDI) has increased steadily
(31.8 billion USD in 2016). A record inflow of 5.9 billion USD was registered in
2013. Most FDI comes from South Africa, China and Portugal, larger part of this
capital was applied in the extractive sector and associated infrastructure projects.
For the future, numerous opportunities for downstream industrial projects are
arising, such as gas liquefaction (4-6 billion USD), fertilizer production, energy
production, chemicals etc.
In order to attract more industry to the country, the government is setting up spe-
cial economic zones offering tax breaks, for instance in the northern city of Naca-
la. Nonetheless, investors continue to face significant challenges. One hurdle is
the country’s lack of skilled workers, which means companies are forced to invest
strongly into the training of their own personnel. Moreover, companies have often
been expected to rely on their own initiative in terms of infrastructure. On the
positive side it has to be mentioned that rising incomes from the resources sector
are leading to public infrastructure projects.
Development of foreign direct investment
year 2013 2014 2015 2016
Net inflow (million USD) 6,175 4,902 3,867 3,093
Cumulative amount (million USD) 19,968 24,870 28,737 31,830
Source: UNCTAD World Investment Report 2017
Business environment
The business environment is still a challenge for Mozambique. Even when com-
pared to regional standards there is a lot to be improved. This applies not only to
the physical infrastructure but also to regulations, bureaucracy, corruption, law
enforcement etc.
• Ease of Doing Business 2017: ranked 138 out of 190 countries
• Corruption Perceptions Index 2016: ranked 142 out of 176 countries
5
ECONOMIC
ECONOMIC DATA AND PROSPECTS
STRUCTURE
• World Economic Forum – Global Competitiveness Index: ranked 133 out of 138
countries.
• Hermes Country Risk Rating: 4- high risk
Economic structure and prospects
Mozambican economy is characterized by a dual development. On one hand there
is FDI, megaprojects and growth and on the other hand many informal business-
es and small, less competitive companies which are not linked to the rest of the
economy. It is estimated that the Mozambican economy counts approx. 50,000
formal companies with approx. 750,000 formal jobs, most of them in SMEs. The
industry sector accounts for approx. 100,000 jobs, while mining offers less than
20,000 as it is quite capital intensive.
According to the Mozambican Enterprise Survey2014 (CEMPRE) the extractive
Mozambique
industries accounted for approx. 200 formal companies offering approx. 13,000
6
jobs. This is less than 2% of the total formal employment in Mozambique.
However, the natural resources industry has registered fast-paced growth rates
over the past year, and this trend is expected to continue. Especially the gas and
oil industries are believed to contribute to GDP and employment in the long run.
Industries associated with the resource boom in particular are emerging as further
growth sectors. The construction industry is benefiting from infrastructure im-
provements and the installation of international business operations. Transporta-
tion and communications, the energy industry and the domestic financial industry
are also showing strong growth. In contrast, local manufacturing is lagging behind.
Mozambique depends almost entirely on imports of finished products, machinery
and equipment, and on technical and advisory services from abroad. That means
up-grading local industries and linking them to FDI remains a challenge. It has to
be seen what the proposed Local Content Laws will bring.
In regional terms, the greater Maputo/Matola area is still the economic, political
and cultural centre of Mozambique, accommodating most investments and jobs.
Matola, where the Mozal Aluminium smelter is located, is the country’s largest
industrial region.
Mineral and gas production sites are being developed in the central and northern
provinces far from the capital, bringing new economic activity to the under-de-
veloped interior where there is clearly a huge lack of infrastructure and qualified
human resources. There are also logistical needs: Mozambique is traditionally
marked by east-west development and logistics corridors (Nacala, Beira, Mapu-
to). A North-south infrastructure is missing (railway, roads, energy, transportation
service etc.).
7ECONOMIC DATA
OPPORTUNITIES IN THE NATURAL
RESOURCES SECTOR
Opportunities in the natural resources sector
Despite the economic turbulence between 2014 and 2016 and partially declining
commodity prices, compared to 2012, Mozambique continues its way to become a
key location for extractive industries. Mozambique’s economic upswing in the be-
ginning of this century can be largely attributed to growth in the natural resources
sector. There is a large variety of commodities that are already exploited; from
metallurgic coal and thermal coal to iron ore in Tete province, from heavy miner-
al sands alongside the country’s coastline, high-quality rubies in Montepuez to
graphite in Ancuabe (both in northern Cabo Delgado). Gold mining in Manica and
Niassa provinces is important, although mostly still done by the artisanal sector.
Projects for gold mines are on the way. Sand, gravel, clay and dimension stone for
the construction sector are exploited mainly in the southern part of Mozambique.
The south has thick sediment coverage and is therefore poorer in minerals, but
closer to the main cities. Regarding oil and gas, on-shore production in Inhambane
Mozambique
8and Sofala provinces is already ongoing and planned to be extended. Larger gas
reservoirs have been discovered in the Rovuma Basin, offshore the northern Mo-
zambican coast and exploitation is on the way.
Metallurgical coal and thermal coal
The commodity sector is diverse, however Mozambique’s mining sector remains
dominated by coal extraction, mainly high-quality coking coal, i.e. metallurgical
coal for steel production, sold for example by Vale as “Chipanga Market Premium
HCC”. In land-locked Tete province, where coal mining is performed within the
Permian Karoo formation, reserves for exportable coking coal amount to 23 billion
tons (t). Export regions for coking coal are India, the Americas, Europe and Eastern
Asia. Thermal coal, as a side product, is exported for electricity generation in
power plants and for heating. Contributing 22% thanks to increased coal exports,
the extractive industry was in 2014 the fastest growing sector of the Mozambican
economy. Yet, the situation changed in 2014 when coal prices remarkably dropped.
Low prices together with overblown high expectations and an inadequate rail and
port network made coal projects rather inefficient. Amongst the 124 exploration
licenses and 11 approved mining concessions, only four operating licenses have
been issued. Coal mining in Tete became hardly profitable– only large international
corporations with long-term plans and investment kept producing. Since mid
2016 the situation has been improving due to the new rise of the (coking) coal
price and infrastructural amendments. There have been rehabilitation works at
the 575 km-long Sena Railroad Line from Moatize to Beira, increasing its capacity
from 6.5 million tons (t)/year to 20 million t/year. Even more ambitious was the
rehabilitation and partly new construction of the 912 km-long Nacala Logistics
Corridor railway project (CLN), which crosses Malawi and included the construction
of a new coal terminal at the deep water port in Nacala. Overall costs of this project
are 4.4 billion USD. Test transport operation started in 2015.
The biggest producer within the Mozambican coal sector is the Brazil-based
international company Vale, running Moatize 1 and 2 mines. Moatize was the
first coal mine and is Mozambique’s biggest one with a production capacity of
9ECONOMIC DATA
OPPORTUNITIES IN THE NATURAL
RESOURCES SECTOR
18 million t per year. The metallurgical coal reserves of Vale’s Moatize mine are
estimated at 1.4 billion t.
Vale International holds 80% of Vale Mozambique, 15% were sold to Mitsui
(Japan) in 2017 and 5% are locally held. The CLN railway line and coal terminal in
Nacala belong at 35% to Vale and Mitsui each, 30% are hold by the Mozambican
“Ports and Railway Company” (CFM). Of the originally 22 million t of coal Vale had
planned to export 2017, only 18% were transported via the Sena Railway Line
to Beira. A planned increase of produced coal comes along with forecasted lower
production. In the 3rd quarter 2017, Vale’s transported coal volumes were 38%
higher than in the 3rd quarter 2016.
The second mine in Tete is the Chirodzi open pit mine, operated by Jindal Africa,
a subsidiary of the Indian private sector group Jindal Steel Power. Proven coal
Mozambique
reserves are 700 million t, the annual capacity is 3 million t, whereas production
was limited in the last years due to the coal price development. Chirodzi is linked
to the railway network, using the Sena Railway Line to Beira.
The third coal mine in Tete is Benga, run by India’s International Coal Venture
Limited (ICVL), a consortium created to assure the supply of metallurgical and
thermal coal to India. Due to low coal prices, operations had been stopped in May
2016 but were restarted with the rising of coking coal prices in 2017. Until 2016,
35% of the mined material was coking coal, 10% thermal coal and the remaining
55% were rejects. ICVL owns 65% of Benga mine; Indian private sector group
Tata Steel owns the remaining 35%. ICVL also holds 100% of two additional coal
projects, Tete East and Zambeze.
Minas Moatize, formerly run by Beacon Hill Resources (BHR), was operated until
2015 and then suspended.
10Coal Projects in Tete Province
Project Annual production Actual Production Investment
capacity
Vale, Moatize 1 22 million t /year 6.5 million t/year 3.8 billion USD
and 2 (2016) Nacala railway and
port 4.4 billion USD
Jindal, Chirodzi 10 million t/year 3 million t/year (2016)
ICVL, Benga 5.3 million t/year 3.6 million t/year, 50 million USD from
stopped May 2016, Mozambique
restarted 2017
BHR, Minas 0.6 million t/year stopped 2015, 35 million USD
Moatize planned
Source: “Mining Weekly”, presentations of Vale and Jindal
Ongoing exploration of coal deposits in Niassa province has been done by 7
companies, including Vale, Riversdale Mining (Australia) and JOGMEC (Japan Oil,
Gas and Metals National Cooperation) since 2011. Although results were partly
promising, further exploration activities are on hold due to the development at
the coal market.
Iron /Vanadium/ Titanium mine with attached steel production
Mozambique continues to diversify its mining industry beyond coal, taking into
account the coal price development of the last years for thermal coal and the
worldwide growing share of renewable energies.
One important project is the “Tete Steel Project” of Baobab Resources, which has
the ambitious target to establish Mozambique’s steel industry, using the 100 m
thick magmatic vanadiferous titano-magnetite ore resources of the Tenge/Ruoni
with an iron grade of 36%. Steel production will be operative close to the open
pit mine and use Vale’s coking coal and local limestone for the steel production.
In addition, an industrial free zone has been established in the area, attracting
industries linked to steel production like re-rolling mills producing specialty steel
products, rail production, ferro-vanadium refinery, prefabricated reinforced con-
crete sections, hydro-electric coal power plants, clinker and cement production,
pigment/paint production utilising titanium by-product, vanadium battery pro-
11ECONOMIC DATA
OPPORTUNITIES IN THE NATURAL
RESOURCES SECTOR
duction etc. The project is planned to be commissioned in 2018. In 2017, around
60 million USD had already been invested.
Heavy Mineral Sands
By the Mozambican beaches, heavy mineral sands with an economic potential for
the production of rutile, titanium, ilmenite and zirconium have been explored. Il-
menite and rutile are titanium minerals used to produce titanium dioxide (TiO2)
pigment, titanium metal and welding electrodes.
Zirconium is an important raw material for ceramics industry mainly for wall and
floor tiles and sanitary ware. Zirconium is also used in the refractory and foundry
industries.
Mozambique
Ireland’s Kenmare Resources has worked in Moma mine, Nampula Province, since
2007. Ore reserves are 1.52 billion t while resources are estimated at 6.5 billion t.
In 2016, 30 million t of ore have been mined and 1,405 million t of heavy mineral
concentrate (HMC), 903,000 t of ilmenite and 68,000 t of zirconium were extract-
ed. In 2016, HMC production in Moma increased 28%, compared to 2015.
Another ongoing project is Quelimane in Zambézia province, which has been run
by China’s “Africa Great Wall Mining Development Group” since 2012. In 2013,
production started with 30,000 t of heavy mineral sands. The capacity is 600,000 t
per year. Since 2010, the same company has been running under its subcontractor
Haiyo operating a zirconium mining project Angoche in Nampula province with an
installed annual processing capacity of 12 million t of heavy mineral sands.
In Gaza province, Dingsheng Minerals is expected to start production in Chibu-
to/ Xai-Xai by July 2018. Operations taken over from BHP by Dingsheng are per-
formed by two companies: Anhui Foreign Economic Construction Group and Yun-
nan Xinli Non-Ferrous Metals. Mainly titanium and ilmenite will be exploited; the
volumes of the reserve are 500 million t, which are planned to be mined within a
period of 15 years. For the production of 1 million t of concentrates per year, 471
million USD have been invested so far (2017).
Savannah Resources’ Jangamo and Rio Tinto’s Mutamba, Dongane and Chilubane
12projects have formed since 2016 the collective Mutamba consortium project in
Inhambane and Gaza provinces. Savannah’s share is 51%. Resource has been es-
timated at up to 4.4 billion t at a heavy mineral grade of 3.9 % million t. Planned
production start date is 2020. A pilot plant has been opened in December 2017.
Pre-production investment, including contingencies, is 226 million USD. An asset
of this project is the connection to the power line and the good access to roads
and the ports of Maxixe and Inhambane.
Graphite
Mozambique is becoming a center for graphite mining, too. This carbon variety
mineral– classically known for pen mines and lubricants– is actually of rising im-
portance, mainly due to its use with electrodes in batteries, for example for the
growing electro mobility market. Mozambique-based Twigg Exploration Mining, a
subsidiary of Australian Syrah Resources, is developing the graphite deposit Bala-
ma. With reserves of 114.5 million t of contained graphite, it is the world’s largest
graphite deposit. According to the United States Geological Survey USGS, the rest
of the world’s graphite deposits sum up to only 77 million t. Based on given figu-
res, the life of mine (LOM) would reach with a production rate of 2 million t per
year nearly 60 years. During the production phase, which is planned to start in
2018, the number of employees will be approximately 200.
Australian Triton Minerals explores graphite deposits in the vicinity of Twigg in
Balama North. In 2014, exploration drilling was conducted in four exploration
zones, leading to the assumption that between 730 and 1,200 million t of 5-6%
graphitic carbon mineralisation could be available.
There is an ongoing exploration done by Australia’s Mustang Resources Lda. in the
same area along with the activities of Syrah Resources and Triton Minerals.
Further to the East of Cabo Delgado, the Dutch-German company AMG Graphit
Kropfmühl (AMG GK) took over the existing Ancuabe graphite mine that had been
closed in 1999. The mine was reopened in June 2017 after an investment of 12
13ECONOMIC DATA
OPPORTUNITIES IN THE NATURAL
RESOURCES SECTOR
million EUR. The capacity of the mine was increased from 6,000 to 9,000 t of
graphite per year.
Tantalum
The Highland African Mining Company (HAMC) closed their Marropino mine in
Zambézia province in 2013 due to high production costs. Exploration plans in
Morrua mine have not been transacted yet. Morrua mine in Zambézia represents
one of the largest tantalum reserves in Mozambique, bearing reserves of 7.5 mil-
lion t of ore grading 0.07% tantalum.
Ruby
A special type of mining is Montepuez Ruby Mining Lda. (MRM) in Montepuez,
Mozambique
Cabo Delgado province, because mining for ruby and corundium is done in grand
industrial scale here. Usually, this kind of gemstones mining is done in a smaller
scale and mostly by artisanal miners. 75% of the project is owned by Gemstones
Lda. and 25% by Mwiriti Lda. The open pit mine provides the technical capacity
to move 150 t of soil per hour. MRM has invested 70 million USD into the project,
excluding taxes and royalties of up to 55.3 million USD paid to the Mozambican
government in 2016.The mine is expected to exploit 10,000 ct (metric cerate) of
rubies per year. 322 workers have been listed so far (2017).
Australian Mustang Resources Lda is investigating in the area connected to Gem-
stones Lda. and close to Namahaka village, where ruby is mined on a small-scale
base.
Gold
Manica province is Mozambique`s main gold exploration area, where mining is
done by artisanal miners. Small-scale gold mining is also found in Tete, Niassa and
Cabo Delgado provinces.
Clean Tech Mining in Manica has done ongoing large-scale gold mining since 2014.
The processing plant has a capacity of 50 t of soil per hour. The mine employs
around 200 permanent workers. The complete investment was 3.5 million USD.
14UK-based XTRACT Resources acquired Manica Gold Project from Australian Auroch
Minerals for approx. 11 million USD, excluding the 700.000 USD taxes in 2016.
The company assumes that in 7 years 3.3 million t of ore will be processed from
both open pit and underground mines to produce 215 koz gold (6,095 kg). The in-
dicated resources are 782 koz (22169 kg). Operations started by the end of 2017.
Exploration for alluvial gold is also ongoing, e.g. by Chinese Republic Gold at
Mucurumazi, Manica province.
Rare Earth Deposits
Along the Malawian border in Tete province, Mágoè district, the opportunity for
rare earth deposits is given. Australian Kimberley Rare Earths has detected occur-
rences for rare earth minerals, while Anova Metals is targeting gold in the same
zone.
Phosphate
Evate deposits at Monapo in Nampula province would allow an annual production
of 2 million t of phosphate. In 2014, Vale abandoned the project, which would
require an investment of 3 billion USD. In 2017, INAMI invited investors to submit
proposals. Another deposit is Muande in Tete province.
Nickel
In 2012, important nickel reserves of estimated 23 million t have been discovered
in the area of Montepuez, Cabo Delgado. Another deposit is the Mavita copper-
nickel-cobalt project in Manica, from which Rio Tinto withdrew. An exploration
licence had been given to Canada-based AXMIN in 2010.
Diamond
In 2017, exploration results suggested the existence of kimberlites in Gaza pro-
vince, which might bear diamonds. Further exploration is ongoing.
15ECONOMIC DATA
OPPORTUNITIES IN THE NATURAL
RESOURCES SECTOR
Mineral Resources Mining Projects in Mozambique
Project Company Commodity
Tenge/ Ruoni “Tete Steel Baobab Resources Iron, Vanadium, Titanium:
Project”
Moma, Nampula Kenmare Resources Heavy
Mineral Sands;
titanium, ilmenite, zirconium
Quelimane, Zambezia Africa Great Wall Mining Heavy Mineral Sands
Development Group
Angoche, Nampula Haiyu Mining Ltd. (Africa Heavy Mineral Sands;
great Wall Mining Develop- Zirconium
ment Group)
Mozambique
Chibuto, Xai-Xai, Gaza Dingsheng Minerals SA Heavy Mineral Sands
Under development: Savannah Resources/ Rio Heavy Mineral Sands
Mutamba/Jangamo Tinto Ilmenite, Zirconium
Inhambane
Under development: Twigg Exploration Mining Graphite
Balama, (Syrah Resources)
Cabo Delgado
Exploration phase: Triton Minerals Graphite
Balama North
Cabo Delgado
Ancuabe, Ancuabe Graphite Mine AMG Graphite
Cabo Delgado GK- (Graphit Kropfmühl)
Montepuez, Cabo Delgado Montepuez Ruby Mining Ruby, Corundum
Limitada
Manica, Manica XTRACT Resources Gold
Manica, Manica Clean Tech Mining Gold
Source: Companies’ Websites and MIREME
16Resources Production Investment
759 million t To be started in 2018 1.1 billion USD
60 million USD
(in 2017)
6,507 million t total 1,405 million t HMC (Heavy Mineral 774 million
Concentrate) USD (2016)
m 900,000 t ilmenite
68,000 t zirconium
1.12 million t total: 600,000 t per year 163 million USD
1 million t ilmenite
0.12 million t zirconium
2 million t 12 million t per year capacity 150 million USD
1,764 million t 33 million t per year from 7/2018 471 million USD
4.4 billion t, 3.9% total heavy Planned: 574,000 t per year 226 million USD
minerals
Reserves: 114.5 million t with 2 million t per year to process 193 million USD
16.6% TGC (total graphite 380,000 t per year graphite concen- + 7 million USD
content) trate contingency
Resources: 1.2 billion t with 11%
TGC
EEstimated 730- 1200 million t
1 million t 60,000 t per year; start in June 2017 12 million EUR
in recovery
150 t soil per hour; 10,000 ct [metric 70 million USD
carate]/year planned for 2017
782 koz (22,169 kg) Planned: 30,7 koz / year (870 kg / 11.7 million
year) USD
Processing plant capacity: 50 t/h 3.5 million USD
17ECONOMIC DATA
OPPORTUNITIES IN THE NATURAL
RESOURCES SECTOR
Gas
Mozambique’s onshore natural gas production is operated by South Africa’s Sasol
in Inhambane province, which holds proven reserves of 2.6 trillion cubic feet (TCF).
The liquid natural gas is produced and processed at a central facility in Temane
before being transported to South Africa. Gas for domestic use is transported to
southern Mozambique.
In addition, Sasol started to develop its Production Sharing Agreement (PSA) li-
cense in 2016. The PSA development is an integrated oil, liquefied petroleum gas
and gas project in northern Inhambane province. The first phase of the project
includes 13 wells and an LPG production facility at an estimated cost of 1.4 billion
USD.
Mozambique
Project Company Commodity Resources Production Investment
Inhambane SASOL, ZA Gas (LNG) 4.8 TCF 194 million
Gas Project [trillion cubic GJ of gas per
feet] year (2016)
Inhambane SASOL, ZA Oil, LPG, 0,8 TCF- Gas LPG- 20 1.2 billion
PSA project LNG 200 Mbbl- million t 86 USD
Light Oil MScf/d
15,000 bbl/d
Anadarko Anadarko Gas (LNG) 100 TCF Proposed 23 billion
Deep Water Onshore LNG USD
Project, Cabo production
delgado 12 million
t per year
(Anadarko)
Eni Offshore ENI/ Exxon Gas (LNG) 84 TCF Approved 8 billion
Project, Cabo offshore USD
Delgado floating
LNG (FLNG)
project for
production
of 3.4 million
t/year
Source: Websites and MIREME, INP
18A new chapter in Mozambican his-
tory is about to start in 2019 with
the offshore gas production on ma-
jor scale. USA’s Anadarko and Italian
ENI have discovered resources of far
more than 100 TCF in the Rovuma
Basin, which spreads offshore from
Cabo Delgado province and contin-
ues further north off the Tanzanian
coast. Anadarko recently invested
770 million USD into its offshore ac-
tivities. The total investment sum is
reported to be 30 billion USD. Share-
holders are Anadarko (USA) with
26,5%, Mitsui (JAP) with 20%, ONGC
(India) with 16%, ENH (Mozambique)
with 15%, Bharat (India) with 10%,
PTTEP (Thailand) with 8,5% and Oil
India Ltd. with 4%.
Shareholders of ENI’s concession of
area 4 are ENI East Africa (EEA) with
70% and Galp Energia (Portugal),
Kogas (South Korea) and ENH (Mo-
zambique) with each 10%. Eni East
Africa is held by ENI with 71.4% and
by CNPC (China) with 28.6%.
19ECONOMIC
ADVISORY DATA
SERVICES AND SUPPORT SCHEMES
German Advisory services and support schemes
AHK – Southern African-German Chamber of Commerce and Industry
The German Chambers of Commerce Abroad (AHK):
The network of German Chambers of Commerce Abroad (AHKs), which consists
of bilateral chambers of commerce abroad, delegations and representatives of
German business, advises, consults and represents German companies worldwide
that wish to develop or expand their business activities abroad. The AHKs are in-
stitutions of German foreign trade promotion. The Association of German Cham-
bers of Commerce e.V. (DIHK) continuously coordinates and develops the network
of German Chambers of Commerce Abroad. They are co-funded by the Federal
Ministry for Economic Affairs and Energy (BMWi).
Mozambique
www.germanchamber.co.za
GIZ: Informal construction stone
20Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
As a German public-benefit federal enterprise, GIZ has been involved in interna-
tional cooperation for more than 50 years. A large proportion of its commissions
are carried out on behalf of the Federal Ministry for Economic Cooperation and
Development (BMZ), but GIZ also works for other federal ministries and public
and private partners in Germany and abroad. It is currently active in more than
120 countries.
GIZ provides professional expertise in developing appropriate business models
and creating favourable economic and political frameworks. The GIZ office in Ma-
puto provides companies with contact details for government agencies, associa-
tions and other local partners. GIZ provides advice on value chain management
and environmental and social standards. Training courses and expert placement
are also available to facilitate the international assignment to staff.
Between 2013 and 2017, GIZ ran together with BGR, a programme that aimed to
strengthen the natural resources sector by improving governance in the mining
sector. Main tasks were:
• Support to the Mozambican Ministry of Mineral Resources & Energy (MIREME) at
central level
• Resource governance in relevant regions at local level
• Support to the Extractive Industries Transparency Initiative (EITI)
• Promotion of the public-private dialogue between MIREME and mining compa-
nies
Since 2017, GIZ’s support to the extractive sector in the country has continued
within the Good Financial Governance Programme. The focus is now on the trans-
fer of 2.75% of revenues from the mining, oil and gas industries to the develop-
ment of local communities as well as on safety in mines
https://www.giz.de/en/worldwide/320.html
21ECONOMIC
ADVISORY DATA
SERVICES AND SUPPORT SCHEMES
Bundesanstalt für Geowissenschaften und Rohstoffe (BGR)
The German Federal Institute for Geosciences and Natural Resources, BGR, is the
Geological survey of Germany under the Ministry of Economy and Energy. BGR’s
general tasks are to collect, store and provide geoscientific expertise of Germany
and abroad to the government and the public. BGR’s activities in the internation-
al cooperation sector are, like GIZ, funded by the German Ministry for Economic
Cooperation and Development (BMZ). In sectorial, regional and bilateral projects,
technical support in the geoscientific sector is transferred to developing coun-
tries, mainly in Africa, Asia and Latin America.
Since 2013, BGR has been running a BMZ-funded project with MIREME to strength-
en public management in the mining sector, which is linked to GIZ’s activities.
Main components are:
Mozambique
• Capacity building and staff training in different geoscientific issues, related to
licenses of mining activities
• Support in the Potential Analysis of specific commodities
• Support in economic and price building issues for commodities
• Support in procedures in the mining sector
https://www.bgr.bund.de/EN/Themen/Zusammenarbeit/TechnZusammenarb/Projekte/
Laufend/Afrika/2002_2012-2520-0_Mosambik_Staerkung_Bergbausektor_en.html
KfW Development Bank
KfW Development Bank implements financial cooperation with developing and
emerging countries on behalf of the German Federal Government. Staff at the
Frankfurt am Main headquarters and the almost 70 regional offices cooperate with
partners around the world. The aim is to fight poverty, secure peace, protect the
environment and climate and promote equitable forms of globalisation. Amongst
other things, KfW Development Bank finances investment, structural reforms and
in-process advisory services in the partner nations. The inputs and services associ-
ated with implementation are launched to tender internationally by the partners.
German companies are welcome to submit tenders.
22Opportunities are thus opened up to German export companies wishing to pro-
mote their products in challenging future markets.
www.kfw.de
develoPPP.de
Through the develoPPP.de programme, the German Federal Ministry for Economic
Cooperation and Development (BMZ) provides companies investing in developing
and emerging countries with financial and, if required professional support.
The partner company is responsible for covering at least half of the overall costs;
BMZ contributes with up to a maximum of 200,000 EUR. These development part-
nerships with the private sector may last up to a maximum of three years and
cover a wide variety of areas and topics.
BMZ has appointed three public partners to implement the programme on its be-
half: DEG, GIZ GmbH and Sequa GmbH. Companies taking part in develoPPP.de
always cooperate with one of these public partners.
Companies are invited to register their interest with DEG, GIZ or Sequa by partici-
pating in one of the ideas competition held four times a year. These are open to all
German and European companies and their subsidiaries in developing countries
as well as emerging economies. Development partnerships with the private sector
with the potential to achieve outstanding development benefits and involve sev-
eral countries may receive more generous funding as Strategic
Development Partnerships.
www.developpp.de/en
23ECONOMIC
CONTACT DATA
Contacts Published by:
BGR Maputo Office: Bundesanstalt für Geowissenschaften
c/o Direcção Nacional de Geologia e Minas
und Rohstoffe (BGR)
(DNGM) B 4.1 Internationale Zusammenarbeit
Praça 25 de Junho, no. 380 - 4° andar / International Cooperation
Maputo, Mozambique Stilleweg 2
T +258 829177345 or D- 30655 Hannover
T +258 827859830 T +49 511 643-0
E + bgrmozambique@gmail.com E poststelle@geozentrum-hannover.de
Representative Office of the Southern Southern African-German Chamber of
African-German Chamber of Com- Commerce and Industry (AHK)
47 Oxford Road Forest Town
merce & Industry (AHK) in Maputo
ZA 2193 Johannesburg,
Mozambique
Rua António Simbine, no211 T+ 27 11 4862775
Sommerschield E info@germanchamber.co.za
Maputo, Mozambique
T +258 21493260 Deutsche Gesellschaft für Internatio-
nale Zusammenarbeit (GIZ) GmbH
E maputo@germanchamber.co.za
Dag-Hammarskjöld-Weg 1-5
I www.germanchamber.co.za D-65760 Eschborn
T +49 6196 790
E info@giz.de
GIZ Programme I www.giz.de
C.P. 2766
GIZ Mozambique office Credits Cover and photos: GIZ and
C.P. 2766 Av. Francisco Orlando Ma- ©GAUFF Engeneering
gumbwe, nº 976
Maputo, Mozambique Design and Layout: GIZ, BGR, AHK
T + 258 21 491245 Mozambique
+ 258 21 492323
E giz-mozambique@giz.de Kindly supported by:
2425
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