Kenmare Resources urges decision on Mozambique rights renewal
Mozambican government discusses falling mineral prices with industry
3:52 CAT | 16 May 2016
Notícias (File photo)
The Mozambican government is meeting mining sector companies, civil society and development partners to discuss the impact of lower mineral raw material prices in Maputo today, at a time when mining sector companies in Mozambique, especially coal and heavy minerals, have been reporting huge losses.
The boom in mineral resource exploitation, reflected in Mozambique by investments of around US$14 billion (approximately EUR 12 billion) in hydrocarbon and mineral research and production between 2004 and 2013, has been largely reversed by the fall in mineral product prices since 2009.
With the government considering it imperative to establish mechanisms to meet and withstand volatility in the prices of mineral products, it is expected that strategies supporting the long-term continuity of mining industry companies’ activities will be discussed.
The government’s biggest concern is the loss of direct and indirect jobs, along with the significant decrease in demand for goods and services, affecting thousands of Mozambican companies. The decline also affects tax revenues from the export of natural gas and liquefied natural gas produced in Pande and Temane.
Source: Notícias
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