Mining and energy roundup: 16 suspend activities, Guebuza’s mine shut down, and renewables

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Mining and energy roundup: 16 suspend activities, Guebuza’s mine shut down, and renewables

4:38 CAT | 13 Nov 2020

Picture: Energy Matters

A total of 16 companies in the mining sector in Mozambique suspended activities due to the Covid-19 pandemic this year, with more than 500 workers losing their jobs.

Among those at a halt is Montepuez Ruby Mining (MRM), whose chairman of the board is Samora Machel Júnior.

This Wednesday, two more companies in this sector announced the suspension of activities.

“The pandemic situation is worrying. The mining sector is suffering from this shock. Unfortunately, this situation still continues and we are managing it. There is no doubt that it is a great loss for mining activity in Mozambique,” director of the National Institute of Mines (INAMI) Adriano Sênvano said.

Adriano Sênvano told reporters on Wednesday that, over the past five years, 2,000 mining prospecting licenses were withdrawn from the holders as a result of their not having initiated any mining activities.

This year alone, the National Institute of Mines withdrew 145 mining titles for the same reason.

Government withdraws licence of Guebuza mining company

One of the 145 licenses withdrawn was the gold prospecting licence for a Manica company owned by former president Armando Guebuza.

“It was registered in an area where it shouldn’t have been. Unfortunately, these things happen, due to our colleagues’ distraction or ignorance. It is located less than two kilometres from the border with Zimbabwe,” the director of the National Mines Institute explained.

Whether political “arm wrestling” or not, Adriano Sênvano says that “these conditions cannot be tolerated”, while the Ministry of Mineral Resources and Energy says it is investigating another case of a mining license granted outside Mozambique’s [mining] borders.

Renewable energies auctions

The government also announced, at the press conference on mining activity and the energy sector, that it is evaluating 132 potential investors for a future renewable energy production plant in Dondo, in Sofala province.

This assessment comes 40 days after the launch of the renewable energy auction contest by President Nyusi in Maputo.

Because of the high number of potential investors, the Energy Regulatory Authority (ARENE) was forced to extend the deadlines for expressions of interest for the Dondo plant.

“The initial deadline would have ended next week (16 November), but due to the growing number of expressions of interest, we decided to extend it to 23 November,” the Energy Regulatory Authority’s Paulo da Graça said.

Of the 132 potential investors, 30 are said to be Mozambican entities, both companies and individuals.

The Dondo plant will be the first of four in the country, all of them able to produce 120 megawatts of clean energy, aimed at achieving universal access to electricity in Mozambique by 2030. Renewables will be decisive in achieving this goal.

Solar energy is the most abundant renewable energy source in Mozambique with a potential 23,000 gigawatts, although hydropower accounts for most projects (more than 5.6 GW).

Source: O País