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Mozambique extractive industry 2012 revenue soars to $2.5b

Investments in the extractive industry in Mozambique soared to $2.5 billion in 2012 up from $184 million in 2005, the Minister of Mineral Resources, Esperanca Bias disclosed on Wednesday.”With these investments, which resulted from high scale production of natural gas, heavy sands and coal, we consolidated the privileged position of Mozambique on the world map of countries benefiting from investments” Bais said.

He was speaking during a seminar on Liability Social Enterprise (BE), an event that was attended by the High Commissioner of Canada, Alain Latulippe.

Thanks to these investments, Mozambique currently has a collection of important geological information, available to all who want to invest in geological and mining activity in the country, he said.

The minister explained that the implementation of the projects contribute greatly to the increase in state tax revenues and stimulates the growth of various economic activities and services as well as creating new opportunities for employment generation.

Currently, according to the minister, several private hydrocarbons companies and associated national geological surveys are conducted under 12 contracts granting exploration and production of petroleum basins of Mozambique and Rovuma.

As a result of the adaptation and improvement of sector legislation, said Bias, there has been a consolidated increase in the participation and involvement of citizens in the Mozambican capital firms supplying goods and services.

To support their arguments, the minister cited the acquisition, in 2008 of 10 percent of the shares of the Mozambican Hydrocarbon Company, while enterprises natural gas from Pande and Temane were acquired for 1,247 Mozambican citizens across the country.

“As part of the promotion of investments in the exploration of mineral resources in view of the country’s sustainable development, there has been prospecting and ongoing research, resulting in the identification of a large potential for coal, iron ore sands heavy base metals and other minerals “he said.

However, the minister issued a note of caution that the potential benefits of the discovery and identification of large coal reserves and other resources are yet to be felt given that some mining projects are still in their investment phase while in other cases, the study phase was yet to determine their viability.

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