The Mozambique coal mining industry is currently considered as the primary driver for infrastructure development in the country, with an esti- mated $22.4-billion being invested in transport infrastructure and $9.7-billion in energy and power infrastructure.

This is all because of the Mozambican coal boom, states Frost & Sullivan’s energy and environmental industry analyst, Sarah O’Carroll.

“There will be significant growth in rail and port infrastructure over the next ten years, expansion projects in these sectors will result in the rail network growing by more than 1 700 km and export capacity will increasie almost five times,” notes O’Carroll.

“The country’s infrastructure sectors have taken note of the ongoing multibillion- dollar infrastructure projects – ten of which are estimated to be valued at a total of $60-billion.

“Transport, energy and power, tele- communications, water and social infrastructure will see an investment of about $34-billion over the next few years,” she enthuses.

O’Carroll points out that several coal mines are being developed in the Tete province of Mozambique, which has been compared to the well-known Bowen basin, in Queensland, Australia.

This major coal-producing region contains one of the world’s largest deposits of bituminous coal, with more than 48 operating coal mines in August 2011.

Many experts believe that Tete could match this region, but improved logistics infrastructure to export raw materials will be necessary to make mines successful and competitive.

“The mining industry is also energy intensive. Currently, mines are expected to meet their own energy demands through the use of diesel generators,” says O’Carroll.

She states, however, that Mozambique is engaged in several capacity-building projects in the energy and power sector to meet projected increases in demand.

She adds that, owing to the significant coal reserves in the country, several coal-fired power stations are being developed.

“Through these projects, energy- generating capacity in the country will increase from 2 209 MW to 7 449 MW.

“The transport sector will benefit from investment to the value of $22.41-billion over the next decade. Further, investments in the roads sector will result in the reconstruction of several trunk roads that were destroyed during the civil war, as well as the development of the Nacala, Beira and Maputo corridors,” says O’Carroll.

She adds that investments in the rail sector will be used to expand the rail network, which is currently a single- railway corridor, to facilitate exports from Tete province.

“There are also significant expansion projects under way at many ports to increase the country’s export capacity fivefold.

“Government’s reliance on donor funding is the single most significant challenge restraining infrastructure development in the country,” cautions O’Carroll.

She adds that the private sector is supporting 65.6% of all infrastructure projects in Mozambique, thus stimulating infrastructure development in the country.

“Mining companies, in particular, account for 17.1% of all infrastructure investments, ensuring that infrastructure is sufficient to support their coal exports.

“Companies that have been in the market for several years can demonstrate their ability to overcome challenges, work within a specified budget and deliver projects timeously. They also have the greatest advantage in winning tenders in Mozambique. Here, it is not only price, but also quality and service that are equally important,” she says.

O’Carroll adds that the Ministry of Environment rejected 146 mining licence applications last year, as they violated environmental legislation.

“It is hoped that government will maintain this attitude when granting mining licences going forward. If sustainable mining practices are implemented for new mining developments, environmental impacts should be greatly reduced and socioeconomic development enhanced.”

She concludes that the lack of a sustain- able mining policy and the lack of skills and expertise are key concerns in the country.