Mineral industry of Mozambique: Difference between revisions

In 2006 [[Central African Mining]] also acquired exploration licenses in the Moatize basin coalfield and started construction of a mine.<ref name=usgs/> Beacon Hill Resources acquired the Minas Moatize Coal Mine in December 2010 and from 2011, operated it through a local subsidiary, Minas Moatize Limitada.<ref>http://www.bhrplc.com/minasmoatize.aspx</ref> Beacon Hill converted the mine from underground to open-cast mining. In 2012 the Minas Moatize Coal Mine was estimated to have proven reserves of 25 million tons and probable reserves of 17 million tons of thermal [[coke (fuel)|coking coal]]. Beacon estimated production was 0.1 million tons of coal in 2012, transported to the port of [[Beira, Mozambique|Beira]] using a fleet of 40 trucks. Beacon hoped to reduce transport costs in the future by using the railway.<ref>(2012) [http://www.mining-technology.com/projects/minas-moatize-mine-mozambique/ Minas Moatize Coal Mine, Tete, Mozambique] Mining-Technology.com, Retrieved 5 April 2013</ref> In March 2012, Beacon Hill entered a marketing partnership with the Dutch [[Vitol]] trading group who would market and export the coal.<ref>http://www.vitol.com/latest-news/160-vitol-establishes-coal-marketing-partnership-with-beacon-hill-resources?page=2 Bob Finch, Vito's Head of Coal announces Coal Marketing Partnership with Beacon Hill</ref>

In April 2010 the Australian company [[Riversdale Mining]] (bought by the [[Rio Tinto Group]] in 2011<ref>Miller, John W. et al (17 January 2013) [https://www.wsj.com/articles/SB10001424127887323468604578247011197822002 Miner Rio Tinto Ousts CEO as Bad Bets Cost Billions] Wall Street Journal, Retrieved 4 April 2013</ref>) opened the [[Benga coal mine|Benga coal]] project in Tete.<ref>http://www.miningweekly.com/article/riversdale-opens-mozambique-coal-project-appoints-contractor-2010-04-14</ref> Riversdale estimated in 2010 that the Benga coalfield had 502 million tons of coal reserves<ref>(1 June 2010) [http://www.macauhub.com.mo/en/2010/06/01/9178/ Riversdale mining’s Zambezi project in Mozambique has reserves of 9 billion tons of coal] Macauhub, Retrieved 5 April 2013</ref> but in 2013 Rio Tinto downgraded these reserve estimates and noted that "...the development of infrastructure to support the coal assets is more challenging than Rio Tinto originally anticipated..."<ref>[http://www.riotinto.com/media/18435_media_releases_22524.asp Rio Tinto impairments and management changes] Rio Tinto web page, Retrieved 5 April 2013</ref>

However, development of the Moatize basin coalfield depended crucially on the rehabilitation of the railway from [[Beira, Mozambique|Beira]] to [[Tete]], and the construction of a maritime export terminal at [[Beira, Mozambique|Beira]].<ref name=usgs/> Total costs of the project were estimated to be $2 billion.<ref name=usgs/> RICON, an Indian consortium of [[IRCON International|Ircon International]] and [[Rites]] Ltd., had been contracted to rebuild and run from Beira to Tete a 650-kilometer rail line which would link the Moatize basin coalfield with the Port of Beira.<ref name=usgs/> Rehabilitation was originally expected to be completed in early 2009.<ref name=usgs/> After numerous delays, the Sena railway line from Tete to Beira was partly reopened for passengers in 2010.<ref>http://www.trademarksa.org/news/coal-brings-boom-mozambiques-tete-city</ref> RICON missed deadlines and had quality control issues, so, in December 2011, CFM, the [[Mozambique Ports and Railways]] authority, took over control of the Beira rail system. The reconstruction of the freight line was restarted in March 2012<ref>http://allafrica.com/stories/201202170238.html Completion Work on Sena Line to Start in February</ref> but the work was still not finished by February 2013<ref>(25 February 2013) [http://www.clubofmozambique.com/solutions1/sectionnews.php?secao=business&id=27764&tipo=one Sena railway line closure costing CFM millions of dollars] Club of Mozambique, retrieved 4 April 2013</ref> In 2012 it was reported that coal exports had to be transported to Beira by a combination of truck and rail. Since Beira port was shallow, the coal had to be transported by barge out to larger vessels off the coast.<ref name = Breath>Russel, Clyde (22 November 2012) [http://www.mineweb.com/mineweb/content/en/mineweb-energy?oid=163305&sn=Detail Don’t hold your breath waiting for Mozambique coal] Mineweb, Retrieved 5 April 2013</ref> In early 2013 floods prevented parts of the railway line from operating, coal stocks piled up and some coal mines had to stop production. In April 2013, three coal mining companies were reported to be building or planning to build their own railway lines to export their coal, possibly through [[Malawi]] to the deep water port of [[Nacala]].<ref name = Breath/><ref name = BBC>Akwagyiram, Alexis (4 April 2013) [http://www.bbc.co.uk/news/world-africa-22008933 Will Mozambique end up like Nigeria or Norway?] BBC News Africa, Retrieved 4 April 2013</ref>

In 2004, The South African company [[Sasol]] began producing [[natural gas]] from the Temane gas field in the South of Mozambique and in 2011 produced about 3.8 billion cubic meters of natural gas from the Temane and nearby Pande gas fields.<ref name=usgs/><ref>Castel-Branco, Ruth (2011) [http://cdmscannotdeliver.wordpress.com/chapters/chapter-6-mozambique/ Manipulating gas in Mozambique] The CDM in Africa, Retrieved 5 April 2013</ref> Sasol exported the gas through an 865-km pipeline to supply its South African chemical plants.<ref name=usgs/> The Temane and nearby Pande gas fields have proven reserves of 100 billion cubic metres (3.5 trillion cubic feet) in 2013.<ref>(22 January 2013) [http://www.ukti.gov.uk/export/sectors/creativemedia/digitalmedia/sectorbriefing/435580.html Oil & Gas sector in Mozambique] United Kingdom government department of Trade and Inductry, Retrieved 5 April 2013</ref>