Damodar Ferro Limitada, a family business established in Maputo in June 2005, will resume iron ore mining in a deposit located in the Lalaua district, Nampula province, due to rising prices in the international market, said the provincial director of Mineral Resources and Energy.

The exploration of the mine located in the village of Namarrepo 2, in Lalaua was suspended for about a year due to a drop in the price of iron ore in the market, which made activity unsustainable, according Mozambican state news agency AIM.

Olavo Deniasse, provincial director of Mineral Resources and Energy in Nampula added that the creation in the province of an ore processing industry was another factor that encouraged Damodar Ferro Limitada to resume activities in Lalaua.

The processing capacity of the facilities at the mine is 75 tonnes per hour and since operations began in 2009 the company exported about 23,000 tonnes of iron ore to China.

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