Coal
Mozambique
Mozambique, in south-eastern Africa, is bordered by the Indian Ocean to the east, Tanzania, Malawi and Zambia to the north, Zimbabwe to the west and Swaziland and South Africa to the south.
Politics and Economy
The country is politically stable after four peaceful general elections and a presidential transition following the implementation of a new constitution in 1990 and the establishment of a multiparty system. Mozambique is also one of Africa's fastest growing economies, achieving an average annual real GDP growth rate of 8.8% between 1996 and 2008 and is generally considered a successful example of post-conflict reconciliation and recovery.
Activity in the Natural Resource Sector
The Mozambican Government is firmly committed to encouraging foreign investment in order to develop the country's strategic natural resources. In line with this, a new mining and geological policy, funded by the World Bank, was implemented, as well as a new cadastral system. These policies have streamlined the licensing procedure, provided increased security of tenure and a more attractive environment for resource exploration and development.
The Tete province, which has been defined as a globally significant coking coal region, has seen a dramatic increase in exploration activity over the past five years. Several leading international mining and steel companies currently operate in the area, including Vale Riversdale and Ncondezi Coal, which are all planning to develop coal mines in the area.
Infrastructure and Services
Mozambique benefits from good infrastructure with major recent investments into transport and communications. The country also has a robust power supply which is both low cost and easily accessible.
The closest port to Tete is at Beira, approximately 600km away and linked by both a main road as well as the Sena railway, which has recently undergone a US$200 million upgrade, partly financed by the World Bank. The estimated coal carrying capacity of the Sena line is expected to be in the region of 6-8Mtpa once fully operational.
In addition to Beira, there is an existing natural deepwater port at Nacala with associated railway line that runs to Blantyre in Malawi. The Nacala port and railway line will provide a larger and more long-term alternative to the smaller port of Beira, as coal output from the Tete region is expected to far exceed the transport capacity of the Sena railway and Beira Port by 2015. The Mozambican government is already progressing discussions to upgrade the existing Nacala line and build 200kms of new railway to link the existing line with Tete across Malawi. The Nacala line is also seen as a vital link for land locked countries like the Democratic Republic of Congo, Malawi, Zimbabwe and Zambia to gain access to the coast for export. The Mozambican government has already announced that US$500 million has been secured from European governments to develop the line.
Location
