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...