Mozambique’s soil simmers with untapped potential. Beneath the surface lie riches in the form of coal, graphite, lithium, and gemstones, a treasure trove waiting to be unearthed. The mining industry is poised to become a major economic driver, but hurdles need to be cleared before Mozambique can truly sparkle.
“Mozambique’s mineral wealth is largely unexplored,” enthuses Geert Klok, chairperson of the Mozambique Chamber of Mines (CMM), the voice of the industry. “This offers a vast playground for new players,” he says, his voice brimming with excitement.
The Indian Ocean coastline provides a natural export channel, while existing transport corridors like the Maputo Corridor act as arteries, pumping resources to neighboring countries. South Africa, a seasoned pro in the mining game, sits right on the doorstep, offering a wealth of expertise and mining suppliers.
This is all good news for investors, and the Mozambique government is keen to play its part. The 2014 Mining Law established a stable framework, and the 2022 Package of Economic Acceleration Measures promised to streamline bureaucracy. However, hiccups remain.
“The implementation of certain measures is a concern,” cautions Klok. The recently introduced Reference Pricing decree for natural resource exports has ruffled some feathers. The CMM is calling for a more efficient mining registry and a resolution to taxation issues.
“Imagine the possibilities if the mining cadastre functioned smoothly,” sighs Klok. Streamlining license applications and approvals would be a game-changer. While improvements are anticipated, a timeline remains frustratingly vague.
Looking ahead, Klok identifies graphite and lithium as stars on the rise. The Balama mine, the world’s largest natural graphite mine according to Statista, is a testament to Mozambique’s potential. Despite ranking third globally in graphite production, the country is only operating at a fraction of its capacity. Market oversupply and security concerns in Cabo Delgado province are dampening the party.
Lithium, a future battery powerhouse, is another exciting prospect. The recent acquisition of lithium blocks by Bombay Stock Exchange-listed Decan Gold Mines highlights the growing interest.
To maximize the benefit of its resources, Mozambique is toying with the idea of banning the export of unprocessed minerals. The devil, however, lies in the details. “Collaboration with the industry is key to ensure competitiveness,” emphasizes Klok.
Building a skilled workforce and expanding infrastructure are also crucial. “The mining industry already employs over 10,000 people,” says Klok. “Imagine the impact if we could unlock the full potential.” Roads, electricity, and railways are the missing pieces of the puzzle.
Mozambique’s mining story is one of vast potential, but the path to prosperity is paved with challenges. The government, the industry, and the CMM need to join forces to create an environment that fosters sustainable growth. With the right approach, Mozambique’s mineral wealth could propel the nation towards a bright, glittering future.
