The diversity and vastness of unexploited mineral resources that Mozambique is endowed with allows for major investment opportunities for the exploration, extraction, processing and utilisation of these resources. The mining activities are growing from Cabo Delgado, Gaza, Manica, Maputo, Nampula Niassa, Tete, right up through to Zambezia. Coal is the biggest mining commodity in Mozambique however other mineral resources include gold, graphite and precious stones.
Mozambique holds some of the world’s largest untapped coal deposits. Vale of Brazil has made major investments in their coking coal mine. Their first coking coal shipments were in 2011. Vale, through its participation in the Northern Corridor Development (CDN) consortium, has refurbished the Nacala rail line, which runs through parts of Malawi to the deep-water Port of Nacala.
Two large investment projects focused on the mining and processing of heavy sands deposits are moving forward. The Moma Heavy Sands (Kenmare Resources) and Corridor Sands (BHP Billiton) projects together will require more than USD1 billion in investment.
Mozambique’s mineral potential is largely untapped. Gold deposits in Niassa, Tete, and Manica Provinces have attracted domestic and international investor interest in recent years. Gold mining has been slow to develop as most of its activities are done by informal artisanal miners. However, increasing regulation of gold mining may lead to larger scale production, as the Government begins to require miners to formalize their legal status.
Syrah Resources made its first shipment of graphite from its Balama project in the second half of 2017 and formally inaugurated the project in April 2018. The Balama project has a production capacity of 350,000 tons per annum, which represents a 40% share of the worldwide graphite market. Mustang Resources Ltd. has announced the fast-tracking of its Caula Graphite and Vanadium Project in northern Mozambique. Total graphite deposits are estimated at 700,000 tons from 5.4 metric tons of ore, with an associated vanadium content of the ore estimated at up to 1.02%.
Gemfields (UK) owns a 75% stake in Montepuez Ruby Mining Limitada, which commenced operations in February 2012, and represents a $130 million investment in developing northern Mozambican ruby deposits in a concession area of 2600 square kilometers. Gemfields estimates that their existing concession contains an estimated 467,000 carats worth of rubies in both primary and secondary mineralization
A volatile international market and technology-driven changes in product demand, and increasing regulations drive the need for cost reduction in the mining industry. While demand fluctuates, commodity prices drop, and increased government regulations affect revenue; overhead and operational expenses remain constant. Keeping these costs as low and predictable as possible can help mining operations remain profitable and better plan for future market disturbances.
At Serviços Moçambique we are offering strategic procurement solutions and subject matter experts to help mining companies reduce costs associated with mining and natural resource extraction, as well as increase their supply chains value and improve their operational efficiency. However, in Mining regulation compliance and product quality are top priorities, increasing value without compromising service levels is crucial. The lowest cost option is not always the best choice. We meet specific requirements like requested country of origin, certifications, and material quality when sourcing products, regardless of their category, their uniqueness as per client requirements
Our team can also help analyze current spend with a detailed spend analysis, benchmark, or market assessment to identify practical and beneficial savings opportunities. In addition to reducing costs, our strategic procurement solutions can increase service levels and develop long-term supplier relationships.
Once our strategic solution is in place, our experts can also assist in tracking compliance, to ensure end-user purchasers within an organization are utilizing using preferred suppliers or the appropriate products, and buying under agreement, in order to realize the full savings potential.
Mining Services in Mozambique
Companies in the mining equipment sector require expensive and sophisticated equipment to meet customer demands, and achieving cost savings through procurement and the supply of improved mining equipment is a major concern. Numerous mining companies have deferred investments in new mining projects due to declining commodity prices. With our experts who combine their industrial expertise with advanced tools, Serviços Moçambique offers procurement market intelligence solutions that will help procurement managers identify efficient suppliers, compare supplier costs, and make informed sourcing decisions.
Direct Equipment and Materials
- Construction and building materials
- Packaging materials
- Metals
- Plastics
- Castings and forgings
- Fabricated products
- Mining equipment (haul truck, drills, shovels, excavators, and underground mining equipment)
- Pressure vessels
- Drilling and blasting equipment
- Refractories
- Coal/coke
- Conveyors belts
- Construction and building materials
- Packaging materials
- Metals
- Plastics
- Castings and forgings
- Fabricated products
- Mining equipment (haul truck, drills, shovels, excavators, and underground mining equipment)
- Pressure vessels
- Drilling and blasting equipment
- Refractories
- Coal/coke
- Conveyors belts
Ferrous & Non-Ferrous Metals
From fluctuating prices to intense competition, mining companies face constant challenges in sourcing ferrous and non-ferrous metals. This sector is characterized by low flexibility and high capital intensity. Accessing raw materials and energy at competitive prices is a key challenge for metal producers. By realizing the sector’s complexities, our procurement market intelligence experts provide a detailed analysis of the cost elements, efficient suppliers, and the associated risks and savings opportunities that can help clients adopt comprehensive procurement practices.
Precious Metals
The market has several precious metals suppliers, and SpendEdge’s procurement market intelligence solutions help enterprises make informed procurement decisions based on our in-depth analysis involving aspects such as present and future requirements, supplier conduct, and compliance with regulatory requirements.
Mozambique’s mining sector, particularly its substantial unexploited coal deposits in the central province of Tete, has recently attracted significant attention from international mining companies. Recognizing this potential, a new Mining Law (Law No. 20/2014) was published on 18 August.
Several key bodies are currently responsible for regulating mining activities, namely the Council of Ministers, the Ministry of Mineral Resources (Ministério dos Recursos Minerais) (MIREM) and the National Directorate of Mines (Direcção Nacional de Minas) (NDM).
The Council of Ministers, the highest governmental body in Mozambique, includes the president, prime minister and other government ministers and is responsible for creating primary legislation for the mining sector.The Council of Ministers is also Technically responsible for the granting of concessions and
mining licenses, the process of which is run by NDM.
On a day-to-day basis, the sector is primarily governed by MIREM, which is responsible for overseeing NDM and the new regulatory body, the National Institute of Mines (Instituto Nacional de Minas) (INM). MIREM develops and implements policies relating to the exploration and production of mineral resources, including minerals and metals.
Pursuant to the new Mining Law, the Mineral Resources General Inspection is responsible for overseeing compliance with that law and any other legislation, regulations and national standards governing mining activities. In addition, the new Mining Law provides that a new authority, the High Authority for the Extractive Industry (Alta Autoridade da Indústria Extractiva), will be created to oversee the extractive
industry. That said, the new Mining Law is silent as to the powers and role of this High Authority. In particular, it is uncertain as to whether the new authority will be regulatory in nature or will take the role of ombudsman and/or whether its role will conflict or overlap with NDM and/or the Mineral Resources General Inspection.
Scope of the new Mining Law
- The new Mining Law clarifies that activities concerning the industrial processing of raw materials from mining operations are subject to specific legislation.
- As per the previous regime, all mineral resources found in the soil and subsoil, inland water, territorial sea and continental shelf within Mozambique are the property of the State.
- The new Mining Law expressly excludes oil, natural gas, methane gas and natural gas from its scope. Such hydrocarbons are governed by the new Petroleum Law.
- In addition, the new Mining Law provides that mineral water is expressly included within the scope of the new mining regime.
The new Mining Law makes a number of key changes to the mining regime in Mozambique, in particular regarding the licence regime. Nevertheless, many significant uncertainties remain concerning the rules and regulations governing the sector and a number of provisions within the new Mining Law may prove difficult for investors to navigate. That said, it is likely that outstanding uncertainties will be addressed by subsequent regulations and secondary legislation. Given the significant potential of natural resources in Mozambique, the regulatory regime governing its mining sector is expected to continue to develop and mature in the near future.
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Doing Business in Mozambique
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Serviços Moçambique operates in line with international standards, policies and procedures. Our set of core values and a strong code of ethics guides our business decisions, creating a corporate culture that fosters teamwork, intellectual growth and leadership.
Our dedicated team of professionals and collaborators include key players from all sectors across Mozambique, business managers, entrepreneurs, project engineers, HR specialists, attorneys and research specialists with extensive experience in the local and regional market. We are deeply engrained in the culture, language, laws and local regulations of this unique market allowing us to tailor solutions to our clients’ needs.
We have been providing high-quality consulting and procurement services in Maputo to a diverse base of clients from sole traders to multinational enterprises across a variety of industries and sectors, mining, manufacturing, construction and finance among others. The wealth of experience we have gained from our clients also fortified our role as top notch business development advisors.
We operate in Maputo, Pemba, Beira, Tete, Nacala and Nampula, dedicating all of our resources to the long-term success and general well-being of our clients.