Mozambique 24 Feb 2017: The course of Mozambican mega-projects rarely does run smooth
Good afternoon. Mozambique’s various energy authorities have been meeting with international finance institutions today and yesterday to find a way forward for Sasol’s planned large gas-fired power project near Vilankulo, which will have broad implications for the national grid and electricity utility EDM’s expansion plans for the coming years.
SEE: Mozambique convenes finance meeting for 400 MW Sasol power plant
As Mozambican newspaper O Pais reported today, however, the Temane plant was not the only matter on the meeting’s agenda. EDM is heavily in debt to Cahora Bassa Hydroelectric, which was also at the table, and needs paying.
Sasol made the news again this week as national oil company ENH is looking for advice on how to buy into the South African company’s oil project in Inhambane.
SEE: Mozambique’s ENH prepares to take stake in Sasol oil project
Norwegian fertilizer company Yara, which last month was awarded an allocation of Mozambican gas to make fertilizer in the country, announced it has been forced to shut a fertilizer blending facility in Beira that it bought last year, and convert it into a larger, modern warehouse.
SEE: Yara closes Mozambique fertilizer facility with loss of 49 jobs
Syrah Resources’ graphite project in Cabo Delgado has created a lot of excitement, but the course of Mozambican mega-projects rarely does run smooth. Their current issue is use of water from a nearby dam, but it seems agreement is on the horizon.
SEE: Mozambique graphite development snagged on water use permit
The latest optimistic entrants on the Mozambican scene are a Sino-Brazilian company which today signed an MoU to build a facility in Nacala converting thermal coal to coking coal.
SEE: Chinese company plans $1.2bn project to process Mozambican coal for export to Brazil
Among their suppliers, if the project goes ahead, will be Brazil’s Vale which which ‘only’ lost $105m last year on its Mozambican operation. Pictures emerged this week apparently showing one of its trains having derailed on the new Nacala line - which the company has so far failed to confirm or deny for Zitamar News.
SEE: Vale Mozambique makes ‘significant improvement’ to lose $105m in 2016
And finally, we have more details on the month’s good-news story so far - simpler visa processes for Mozambique tourists and investors. Come one, come all!
SEE: Dual-entry tourist visas could come into force by mid-March
Have a great weekend.
RECENT POSTS
Chinese company plans $1.2bn project to process Mozambican coal for export to Brazil
Vale Mozambique makes ‘significant improvement’ to lose $105m in 2016
Yara closes Mozambique fertilizer facility with loss of 49 jobs
Mozambique convenes finance meeting for 400 MW Sasol power plant
Mozambique’s ENH prepares to take stake in Sasol oil project
