Mozambique braces up for its first iron-ore mining project in Tete

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Mozambique braces up for its first iron-ore mining project in Tete

9:18 CAT | 29 Apr 2016

Mozambique’s first Iron-ore mining project, in the Moatize and Chiúta districts of Mozambique’s Tete province, may begin as soon as 2019.

The project will cost approximately EUR 666 million (US$750 million) and will be developed over an area of 20,000 ha, excavating an estimated 750 million tons of ore over approximately 25 years.

Tete provincial director of mineral resources and energy Grácio Cune explains that “after 25 years, if it is proved that there is still ore to extract, activity will continue”.

Grácio Cune, provincial director of mineral resources and energy for Tete

Iron-ore mining is seen as a possible substitute for coal, which is currently in decline due to the fall in coal prices in the international market.

“The iron-ore project will also use coal and provide leverage for the coal industry giving some relief from the lack of markets being felt in the sector”, Cune said.

Cune believes in the project and expects iron-ore mining to benefit the whole of southern Africa. “The emergence of an iron-ore project may also lead to the emergence of other industries able to consume the product that comes from iron processing. It can boost development and further reduce steel imports to the region.”

At least 800 direct jobs will be created

The project will create over 800 direct jobs in mining and processing in its operation phase, and Tete provincial government believes this number could increase to over 2,500 during the implementation phase.

Initially, the iron-ore extraction project in Moatize and Chiúta will supply ore for Mozambique and Southern Africa Development Community countries. But there are also plans to improve the Sena and Moatize-Nacala railway lines, “If you want to export ore, these two lines [Sena and Moatize – Nacala] may be useful,” Cune notes.

Almost 200 to be ressettled

Iron samples that may be extracted in Moatize and Chíuta

More than 180 people will have to leave their homes if the project goes ahead, 35 families in Moatize district and 16 in Chiúta. The Tete provincial government says it is already discussing resettlement with the communities involved. “We have identified three possible resettlement areas which are currently the subject of study, evaluation and communities consultation,” Cune says.

The Association of Legal Support and Assistance to Communities (AAAJC) is one of the mediators in the public consultation process, and is already accusing the government of imposing choices on communities.

José Tomás is the association’s legal counsel and believes that procedures are not being followed. “When someone – whether a police officer or a figure of authority – forces a person to sign a document under pressure, it is not good.”

Tomas considers the resettlement process is already flawed. He says that the Tete government, in assessing compensation, counted only houses and no other buildings or improvements.

“As a result, in terms of compensation, you can no longer speak about the rest. Therefore we conclude that this resettlement is flawed,” he says, condemning the provincial government’s lack of candour.

Source: Deutsche Welle