Mozambique to receive $ 90 bn for energy and mining sectors investment

May 28, 2012 12:00 AM

The energy and mining sectors in Mozambique are due to receive $ 90 bn in investment over the coming years, according to a report by the London-based Economist Intelligence Unit (EIU).
The latest EIU "Country Report" on Mozambique states that the country "is in the initial stages of sustainable expansion of foreign direct investment, as a result of its energy and mining potential". Investments included in the report include the large scale coal mining projects in Tete province, natural gas exploitation off the northern coast in Cabo Delgado province, railways and ports, and proposed hydroelectric and thermal power generation.

The report puts the $ 90 bn within the context of the country's Gross Domestic Product running at $ 12.4 bn. Of the total investment, $ 18 bn is due to come from the US based company Anadarko which plans to build a liquefied natural gas plant to commercialise its huge gas finds in the Rovuma Basin. A further $ 50 bn is said to be planned by the Italian hydrocarbon company ENI.
Anadarko has so far discovered perhaps up to 75 tcf of natural gas, whilst ENI have found about 40 tcf. Both companies still have more locations to explore.

The EIU report pointed out that the Mozambican government is preparing to launch another round of exploration licences for the Rovuma Basin.
The report stated that the Mozambican authorities intend to increase the maximum stake that its oil company, ENH, can take in future exploration blocks from 25 % to 40 %, stating that "raising the State's stake is expected to be one of the main reforms to the country's new mining legislation".

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