New $1.3 bln energy fund for transmission links across Southern Africa
Photo: Chamber of Mines of Mozambique
Speaking at the Junior Mining Indaba in Johannesburg, Chamber of Mines president Geert Klok invited junior miners to invest in Mozambique.
For historical reasons Mozambique’s mineral resources are relatively unexplored. According to the Chamber of Mines of Mozambique’s Geert Klok, this presents a big opportunity for junior mining companies. These are small and medium mining companies involved in the exploration and development of new deposits. They play a crucial role in the development of the industry. Currently, exploration work is ongoing in minerals such as heavy sands minerals, rare earth elements, lithium, gold and magnetite.
Mozambique has a young but well-established mining industry, featuring amongst others heavy sands minerals, coal and graphite. In fact, Mozambique is now the third largest producer of natural graphite in the world. Due to its geographical location, 2500 km coastline and established logistical corridors it is especially attractive to miners looking to export minerals in bulk.
Investors in junior miners tend to be based in the UK, Canada and Australia. According to fellow panelist Boris Kamstra, investors may not be familiar with certain African countries and could be experiencing a language barrier. This may translate into a higher perceived risk to the investor.
African mining jurisdictions should do their utmost to position themselves as investor friendly. Industry bodies, such as the Chamber of Mines of Mozambique have an important role to play, said Klok.
The Junior Mining Indaba is a popular meeting place to discuss the challenges and opportunities in junior mining in South Africa and elsewhere in Africa. It’s in its tenth edition this year.
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