Mozambique 21 Feb 2017: Rain and resettlement
Good afternoon. Relief efforts are underway in Inhambane where Cyclone Dineo hit last week. Seven people died and over 128,000 families were affected by the storm, which also damaged key infrastructure. Locals and the government are blaming poor construction for the level of damage.
SEE: Cyclone Dineo caused $13m of damage in Mozambique’s worst-hit province
The tribulations of Vale’s coal mining project in Tete continue to highlight the difficulties of doing business in Mozambique. Just when the company’s second mine had got up and running, and its rail logistics were finally running smoothly, the company was hit by a shortage of explosives.
SEE: Vale Mozambique’s Q4 mining hit by explosives shortage
Xtract Resources, which has a gold mining concession in Manica, has decided to outsource operational risk for at least part of its project to local operators who will pan for gold and take a share in the profits.
SEE: Mozambique gold mine to enlist local panners to monetize alluvial deposit
Mozal aluminium plant reported it returned to profit in the second half of last year, thanks to a recovery in global aluminium prices and efficiency improvements at the plant, which was Mozambique’s first ‘mega-project’ after the end of the civil war in the 1990s.
SEE: Mozambique aluminium smelter returns to profit
Mozal is still held up as an example of how mega-projects in Mozambique can be successful, but it will be eclipsed by the LNG projects in Cabo Delgado, if and when they finally go ahead. Anadarko and Eni have had their resettlement plan for the local community approved, on one level, but are still arguing with government over some of the finer points, Zitamar revealed last week.
SEE: Mozambique government wants more from LNG resettlement plan
Some families will also need to be resettled in Gaza province to make way for a new airport to serve Xai-Xai and surrounding areas, which the government hopes will be financed by Chinese cash.
SEE: Mozambique expects Chinese funding for $60m Xai-Xai airport
Have a great week.