Mozambique 21 July 2017: Healthy profits for Vale, but at what cost?
Good afternoon. First, an announcement about the service that Zitamar News brings you.
After launching our daily round-up email earlier this month, this newsletter will now switch to once a week, every Friday.
Our top story this week is the shooting of a protester at Vale’s coal mine in Moatize, Tete province. The Brazilian mining giant also released its latest production report yesterday, with financial results next week expected to show healthy profits from its Mozambican operation. But are they counting the human cost?
FREE TO READ: Protester killed by police at Vale Mozambique coal mine
SEE: Vale hits new coal mining records in Mozambique
No one was surprised by the latest default by the Mozambique government this week - though the bondholders have condemned it, as we highlighted in today’s Daily.
SEE: Mozambique defaults again on sovereign bond as IMF visit concludes
Perhaps just as predictable was the IMF’s firm stance, having been far from impressed with Mozambique’s lack of collaboration with Kroll’s auditors. It confirmed yesterday that it wants gaps to be filled and the audit report published in full - and it has the backing of Mozambique’s political opposition in playing hardball with the government.
SEE: No sign of new Mozambique programme as IMF repeats transparency call
SEE: Mozambique opposition calls to hold back aid pending ‘hidden debt’ justice
SEE: Kroll obstruction ‘institutional and guided’ says top economist
Mozambique’s electricity utility, EDM, is playing hardball with its counterpart in neighbouring Zambia, which owes EDM over $100 million. EDM cut Zambia off in December last year - which came at a handy moment for the Mozambican utility.
SEE: EDM stops supplying electricity to Zambia, as debts hit $108 million
Meanwhile, the Mozambican grid now has another power plant, near Chokwe in Gaza province.
SEE: Mozambique’s Kuvaninga gas power plant finally starts operations
Another miner reporting increased production this week is Kenmare, owner of the Moma heavy sands mine in Nampula province. Meanwhile the owner of the Montepuez Ruby Mine will now definitely be bought out by its biggest shareholder, and delisted.
SEE: Kenmare ups production at Mozambique mine as prices head north
SEE: Pallinghurst completes acquisition of Mozambique ruby miner
And finally, two months from the Frelimo Congress, President Nyusi has taken another step towards consolidating his power, by changing the leadership at the military officers’ college named after his predecessor, Armando Emílio Guebuza.
SEE: Nyusi shakes up command of Mozambique war college
Have a great weekend.
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