Moz urged to be open on mining contracts as Beira terminal opens

By: Keith Campbell
22nd June 2012
Mining Weekly
The Mozambique government should publish the contracts it signs with mining and other extractive industry companies operating in the country. This was urged recently by the International Monetary Fund’s (IMF’s) representative in Maputo, Victor Lledó, in an address in the Mozambique capital.

“The contracts have clauses of a competitive nature which, in principle, ought to be kept secret to protect the signatory companies but I think the fiscal terms should be published,” he affirmed. The contracts should be of a standard pattern and follow international norms.

Meanwhile, the IMF has approved the fourth revision of its Policy Support Instrument (PSI). The PSI is a programme to assist low-income countries which do not need or want financial support but which intend to consolidate their economies with the support of the IMF.

The Fund has congratulated the Mozambique government “for its enterprising efforts in the execution of economic policies and appropriate structural reforms” and has given a positive eva- luation of the country’s economic consolidation. Mozambique has been able to both maintain eco- nomic growth and successfully contain inflation.

Earlier this month, the new $200-million coal export terminal in Beira harbour was opened by Mozambique President Armando Guebuza in the presence of former President Joaquim Chissano. The terminal will export coal mined in the Moatize region of the Tete province by global major diversified mining groups Vale and Rio Tinto. In fact, the new terminal was constructed by a partnership between Vale, Rio Tinto and the Empresa Portos e Caminhos de Ferro de Moçambique (Ports and Railways Company of Mozambique – better known as CFM).

Vale was represented at the opening by the CEO of Vale Mozambique, Mourilo Pereira, and Rio Tinto by its CE: Energy, Doug Ritchie.

The new terminal will be able to handle trains of 42 ore wagons, with a total length of 600 m. It is able to stockpile 300 000 t of coal, and has an annual capacity of six-million tons.

Guebuza highlighted that the terminal’s completion was an example of his administration’s commitment to strategic public–private partner- ships to increase efficiency in national development. It also displayed the government’s commit- ment to solving the logistical challenges facing the country’s coal mining sector. “[Even] though there still are limitations, there is a capacity to identify and remove these bottlenecks.”

Mozambique is seeking to further develop the coal handling capabilities of Beira to increase its capacity to 20-million tons a year. In addition, a coal terminal is also planned for Nacala, which will also be for coal from Moatize.

“[In] the pipeline are other projects to give us more options for transporting minerals and other cargo,” stated Guebuza. “These are huge challenges that we must face and overcome. For this, the principle of public–private partnerships will be fundamental – partnerships based on a strong legal and regulatory framework.”

He also cited the upgrade work being carried out by CFM on the Sena railway line, which links Moatize to Beira. The current phase of the upgrade started in March and will cost about $45- million. It will increase the capacity of the line to some 6.5-million tons a year. A subsequent phase will follow, increasing the line’s annual capacity to 12-million tons.

Edited by: Creamer Media Reporter