COMMENT: Infrastructure delays dictate Mozambique’s coal future

Mozambique's lack of infrastructure could seriously damage its ability to benefit from the exploitation of its extensive coal resources.


Two decades ago, Mozambique emerged from a brutal civil war to become the darling of the west, attracting investment from many of the world’s largest resource companies looking to mine its coal-rich northern provinces.
Steel producers across China, India, Europe, Japan and the Middle East are now eagerly looking to tap into Mozambique’s coal as a low-cost alternative to output from the dominant producers in Australia, Canada and the US.
But they may be waiting a while yet.
Funding for the ambitious multi-billion dollar infrastructure projects that will transform Mozambique into a 100 million-tpy coal exporter needs to be found fast if the government’s production targets are to be met.

Getting the coal out of the ground has not been a problem. Since the Mozambican government opened up a tender process for coal licences in the province of Tete in 2008, mining majors have flooded into the...

Published

November 29, 2012

14:45 GMT

London