The biggest challenge in Mozambique is to provide transport capacity to carry large amounts of coal said the country’s Natural Resources Minister, adding that the government and mining companies were identifying appropriate solutions.

“The new transport routes, power transmission lines, water supply systems, communications systems and other means set up for the development of these or other projects in the mining sector will serve to develop other economic activities and benefit the population in general, thus contributing to the country’s social and economic development,” said Minister Esperança Bias.

At the opening of the 27th Coordinating Council held from 3 to 6 August in the town of Cateme, in the Moatize district of Tete province, the minister said that so far 1,165 mining titles had been awarded along with 12 oil surveying and production contracts.

The natural gas potential in the Rovuma Basin could turn the country into a large natural gas producer without affecting its use within Mozambique to develop new industries and for use as fuel.

“The concession holders of the areas of the new discoveries have already drawn up detailed feasibility studies to develop the reserves and install industrial units for liquefaction of the natural gas and its export to international markets,” noted the minister, adding that investment in an initial phase would exceed US$20 billion for a processing capacity of 20 million tons of natural gas per year.

The minister said she estimated that exports of processed natural gas from Mozambique would begin in 2018. (macauhub)