Geert Klok , Managing Director Grafite Kropfmuehl de Moçambique

MACIG Connect Series

“GK Moçambique is reviving the Ancuabe Graphite mine aiming at production of 6,000 mt/y.”

Can you give us an introduction to GK Moçambique?

Grafite Kropfmuehl de Moçambique (GK Moçambique) is a subsidiary of  the German graphite mining and processing company Graphit Kropfmuehl GmbH (GK). In its turn, GK is part of the Advanced Metallurgical Group (AMG) which is listed on the Amsterdam stock exchange. GK has operations in Europe, Asia, and Africa. Our operations in Mozambique began in 2009, with exploration work through GK Moçambique. GK Moçambique has five prospecting licences in Cabo Delgado province. In addition to GK Moçambique, we have founded GK Ancuabe Graphite Mine. This company was set up to reopen the Ancuabe mine which ceased to operate in 1998.

How has the Ancuabe mine renovation process come along and what is its potential output? Continue reading

Mozambique Mining

Mozambique has a new government, a new mining code and a lot of new infrastructure

Nathan Allen

When Vale inaugurated its multibillion-dollar Moatize mine in 2011, the media proclaimed the start of a coal boom in the Tete province, with major mining houses and ambitious juniors scrambling to invest. They had mixed results. Rio Tinto’s 2011 acquisition of the Benga coal project for $3.7bn and subsequent sale for $50m in 2014 has become emblematic of the industry’s hubris and carelessness during the boom years.

Logistical problems have so far capped Vale’s total coal exports at 6.5 million mt/y, despite nameplate production capacity of 11 million mt/y. The operators resorted to storing mined coal in stockpiles, which has caused environmental and safety problems. Heavy rains then led the Brazilian major to declare force majeure on shipments of 500,000 mt in 2013. Eventually, the company decided to take matters into its own hands, constructing the Nacala Logistics Corridor, its own integrated logistics network consisting of a 900 km railway and deep-water port complex. The project was completed in late 2015 at a cost of around $4.4 billion and Vale hopes this will now allow Moatize to become profitable. Continue reading

Samuel Levy, Managing Partner, Sal & Caldeira Advogados, Lda.

Samuel Levy of Sal & Caldeira explains changes to Mozambique’s mining law.

Sal & Caldeira is Mozambique’s pre-eminent natural resources law firm. Please give us a brief introduction to the firm and its work?

Sal and Caldeira is a full service Mozambican law firm with offices in Maputo, Tete, and Pemba. As such, we are in a strong position to serve the country’s mining and oil and gas hubs. We offer a complete range of services from corporate law through to labour and administrative law, tax and litigation. We are particularly strong in the area of natural resources and are founding members of the Mozambican International Petroleum Operators Association (AMOPI). Through AMOPI, we are also involved in the development of resource legislation, because AMOPI is the interlocutor on legislation vis-à-vis MIRAM. We also assist the Chamber of Mines of Mozambique.

For investors coming into Mozambique what are the key competitive advantages of Sal & Caldeira over other firms operating in the area?

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Mário Deus, Director, Gondwana

Gondwana focus on Mozambique’s oil and gas potential as mining suffers.

We last met with Gondwana in 2014; please give us a brief update about Gondwana’s operations of the past two years?

Mario Deus (MD): Gondwana has managed to remain viable despite the slowdown in the mining industry.  Besides the slowing down in mineral exploration worldwide, Mozambique has been affected in the last couple of years by an electoral period, challenges in electoral results, changes in legislation and a new Government. Investors like stability and certainties and the present situation has affected investors, who are somehow holding on to see what will happen next. Most of exploration projects that were already underway are still in execution, but new ventures are at a standstill. Surface taxes have risen seven fold and that is being reluctantly received by the industry. Our main focus has been coal over the years, but we have lately been involved with graphite, iron, marble and some alluvial exploration in Tete, Cabo Delgado, Manica and Nampula Provinces. We have been fortunate with long standing clients like Vale and Baobab Resources.

How would you compare the available information and geographical mapping of Mozambique to some of its Southern African neighbours? Continue reading

Boris Atanassov, Director, Mayra Pereira, Director, GreenLight

GreenLight looks to provide renewable energy solutions in Mozambique and beyond.

Please provide a brief introduction to GreenLight and the company’s presence in Mozambique?

Boris Atanassov (BS): GreenLight was founded in 2010 as a consulting firm and over the years, the company gradually transformed into a project development and implementation company. We specialize in renewable energy projects where we are involved in project development, research, feasibility studies, and consulting services. Our other focus area is the environmental services sector where our business includes environmental impact assessments, auditing, monitoring and the development of environmental plans for the industry to be more sustainable.

GreenLight have been the pioneers in the sectors that we operate in and we provide great research and development services to many innovative projects in Mozambique. One of the innovative projects on which we were the lead consultants and developers was the introduction of ethanol for cooking stoves.

How many active projects does GreenLight currently have underway in both your operating spheres? Continue reading

Mozambican Natural Gas: Approval for Eni, More Uncertainty for the Country

Mozambican Natural Gas: Approval for Eni, More Uncertainty for the Country

Nathan Allen

On February 23, the Mozambican government gave formal approval to Eni’s plan of development (POD) for its 3.4-million-mt/y Coral floating LNG (FLNG) train, although the company has yet to give a final investment decision. This marks a crucial step in the southern African nation’s strategy to monetize its substantial gas reserves.

The Mozambican share of the Rovuma Basin, which is also shared with Tanzania, is believed to hold up to 150 trillion cubic feet of natural gas. The deposit was first discovered in 2012 by two exploration consortiums led by Eni and Anadarko Petroleum and delineated in more detail in subsequent drilling campaigns in 2013.

Continue reading

Liam Gover, Business Manager, Fircroft CBE

“We have a significant regional network and infrastructure in Mozambique. There are other recruiters present in the country but there is just no comparison.”

What is the relationship between Fircroft and CBE Southern Africa (“CBESA”) and how does the Mozambique office fit into this scheme?

Liam Gover (LG): Fircroft is a global business. Part of our strategy for the coming years is to continue to invest in Africa, particularly Mozambique and the rest of East Africa. We historically had some activity on Mozambique projects through our long-term relationship with Anadarko, although this relationship was managed from the Houston office. Mozambique is home to several major projects, and we are now a local Mozambican business that is well established in country to support our clients as these projects come online. It was never a question of whether or not we should set up a local presence in an office here, but what would be the best way to embrace the local market and have genuine local market knowledge. We chose CBE Southern Africa because, with over 20 years of operations, they were well networked in the country. We have offices in Pemba, Palma, Tete, Biera, and Nacala. Our international oil and gas expertise with strong local network will allow us to support our client’s international, national, and local content-resource solutions. Continue reading