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Maputo conference highlights potential for growth

3rd June 2016

  

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Despite the subdued mining situation in Mozambique ,there is a lot of room for growth across mining, oil and gas, and energy, but public and private entities need to work together to advance the strategy.

This was the overall message conveyed at the fifth biennial Mozambique Mining, Energy, Oil & Gas conference and exhibition (MMEC), which took place in Maputo from April 26 to 28, and was host to 19 exhibitors, 410 dele- gates, 59 speakers and 1 000 visitors, from 31 countries throughout Africa and abroad, which is an increase from the 600 participants in 2015.

“It was a great experience of interaction and exposure of the oil and mining companies,” Mozambique’s Mining and Geological Association’s (AGMM’s) Felizardo Paulino notes.

The theme of the conference was Mozambique’s resources as the catalyst for infrastructure development, inclusive growth and economic transformation. The event was officially opened by Mozambique Mineral Resources and Energy Minister Dr Pedro Couto.

The keynote opening address was delivered by Ministry of Mineral Resources and Energy permanent secretary Alfredo Nogueira Nampete, with AGMM chairperson Dr Estêvão Sumburane, provider of property, casualty, professional liability, and specialty insurance Endurance Specialty Holdings (ENH) chairperson Omar Mithá and other industry stakeholders in attendance.

The 59 speakers discussed pressing issues during a variety of panel sessions. Some of the notable sessions included Mozambique’s new mining frontier in the Cabo Delgado province.

In March, Mining Weekly reported that, in the Cabo Delgado province, a concept study into ASX-listed exploration company Metals of Africa’s Montepuez project estimated that the project could deliver up to 100 000 t/y of graphite concentrate.

In addition, ASX-listed Mozambique-focused company Mustang Resources has exercised the option to acquire 90% and 95% interests in two additional exploration licences covering 205 km2 to the north of the company’s existing Balama graphite project, in Mozambique. Acquiring these new licences has enabled Mustang to hold more than 870 km2 of highly prospective graphite exploration licences in the Cabo Delgado graphite province of Mozambique.

The Nampula provincial government also opened a $50-million gem and other precious stones certification centre in March. The centre will evaluate and certify precious stones from the Cabo Delgado, Niassa and Zambezia provinces as well as Nampula.

Provincial governor Victor Borges believes the new centre will add value to Nampula’s economy not only directly through its development of its own operations, but also indirectly by stimulating the production of gem and other precious stones in the province.

The MMEC panellists also discussed liquefied natural gas pricing and financials, clean and green energy policies and investment, and local content with regard to the procurement of goods and services.

Other interactive sessions included gas monetisation and infrastructure development, the role of independent power producers in Mozambique’s generation, mining transport and logistics, and environmental development and strategies, and showcased leading corporate players currently investing in Mozambique.

In March, Mining Weekly reported that, despite the lower- for-much-longer oil price outlook, integrated chemicals and energy company Sasol is remaining focused on executing growth projects in Southern Africa and North America as part of a dual regional strategy.

In presenting 63%-lower earnings attributable to shareholders in the six months to December 31, outgoing Sasol CEO David Constable gave details of Sasol’s expansion in neighbouring Mozambique, where it had obtained Council of Ministers approval for a field development plan that would monetise more hydrocarbon resources in support of Southern Africa’s growth objectives.

“The Mozambique gas industry is playing an increasingly important role in the regional energy landscape,” Constable said at the company’s latest presentation of financial results.

The production agreement’s $1.4-billion first phase involved an integrated oil, liquefied petroleum gas and gas project next to the company’s existing production agreement area.

Against that background, R2.7-billion was being invested in the Loop Line 2 natural gas pipeline project to increase the capacity of the Mozambique-to-South Africa gas pipeline to 191-billion cubic feet a year from the second half of this year.

Overall, the company is going all out to ensure that its balance sheet and earnings remain resilient at an oil price of $30/bl.

The next MMEC event is scheduled to return to Maputo in 2018.

Edited by Tracy Hancock
Creamer Media Contributing Editor

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