Iron & steel project in Tete, Mozambique: 10% of state shares to be sold on stock market

Login

Register

http://www.clubofmozambique.com/

Iron & steel project in Tete, Mozambique: 10% of state shares to be sold on stock market

12:39 CAT | 12 Dec 2017

File photo / Minister Klemens announced the sale

The future iron ore extraction and processing project in Tete, Mozambique, will float shares on the stock market, Minister of Mineral Resources and Energy Letícia Klemens announced yesterday.

“Under the terms of the agreement, 10 percent of the shares will be offered for sale to Mozambicans and national institutions through the Mozambican Stock Exchange,” while another 5 percent will be taken up by the Mozambican state.

The minister was speaking at the signing ceremony of the mining contract with Capitol Resources, in association with Baobab Resources, an Australian multinational.

The project is budgeted at around 16.9 million Euros, with the construction phase expected to generate 3,550 jobs for Mozambicans, 2,110 jobs of which will persist going forward, the company announced.

Also Read: Tete iron and steel contract signed

Tete iron and steel project attracts Chinese companies

“We are now in the process of securing the development and funding partners,” said Ben James, chief executive officer of Capitol Resources.

The investment base is a mining concession in the districts of Chiúta and Moatize in an area of about 19,878 hectares, expected to contain 92 million tonnes of iron ore to be exploited in a 34-year open-cast mining operation.

Of the total area, about 4,500 hectares are destined to for an iron processing factor, which will be connected to the Moatize district by a 41-kilometre asphalt road and 58 kilometres of electric power line.

Letícia Klemens announced that a EUR 7.3 million of social responsibility programme focusing on socio-economic activities and negotiated between communities, local government and Capitol Resources was planned.

Ben James clarified that the number of families needing resettlement was less than 50.

“We are working with local government and families,” he said. “The area chosen is as close as possible to the mine, allowing people to remain within their communities and benefit from employment opportunities.”

Source: Lusa