“The mining industry in Mozambique is quite diversified in terms of large-scale mining” 04.12.2024 – Speaking at the 5th German-African Business Summit (GABS) in Nairobi, Kenya, the chairman of the board of the Mozambique Chamber of Mines, Geert Klok, said that the mining industry in Mozambique is quite diversified in terms of large-scale mining. In the last 20 years, the country has made a lot of progress and is now the 3rd largest global producer of natural graphite.
From left to right: Standing H.E Ronald Munch (German Ambassador to Mozambique).
Seated: Gil Bires (Director General of APIEX), Wilson Mujovo (Head of Small-Scale Artisanal Mining, MIREME), Sokwani Chilembo (President of MIASA), Monica Gichui (AWIMA Consultant for Maval Africa), Seleen (Head of Competence, AHK Sub-Saharan Africa), Cedric Simonet (CEO, Altona Rare Earths), Geert Klok (Chairman of the Board, Mozambique Chamber of Mines) & Christoph Neuberg (CEO – IHK Chemnitz)
The panel discussion on “Mozambique’s role in the international discourse on critical minerals”, moderated by H.E. Ronald Munch, German Ambassador to the Republic of Mozambique, aimed to address pertinent questions such as;
– The investment climate and opportunities for the Mozambican mining sector: Status and needs for improvement,
– Minerals and Critical Metals: Dynamics between Mozambican mineral resources and European needs.
Klok pointed out that the country is a major producer of coal, heavy sand minerals and concentrates, and precious stones; the mines are often located in rural areas with no qualified staff, so many of the professionals in the mining sector have had to be trained. As a result, the sector has created at least 10,000 formal direct jobs and another 10,000 indirect jobs. Mining companies have created many opportunities for suppliers, such as the supply of spare parts, consumables and logistics; these chains have had to be gradually built up. Moz Parks has launched an interesting concept in all Mozambican provinces to work with mining and oil and gas projects as its anchor clients, such as the one in Nampula, close to Kenmare’s operations.
Cedric Simonet, when asked about the opportunities and challenges, said: “In terms of the business environment, it’s generally positive. The first thing I look at in a mining country is how easy it is to get a mining license. Also, if you look at Mozambique’s mineral cadastre, you’ll notice that the licenses displayed are mining licenses and not just exploration licenses, compared to Kenya, which only shows the status of the application. However, the ease of doing business is not as straightforward as in Kenya, as most applications are carried out online and are usually available within a few hours; processes in Mozambique tend to take much longer due to bureaucracy, and this is an aspect that can be improved.”
When approached with the same question, Gil Bires mentioned that “the government approved the PRONAI program with the aim of stimulating the local processing of commodities. The government wants to change the approach from a country oriented towards exporting commodities to one that processes minerals internally, in order to create more jobs, increase tax revenue and other benefits associated with the mining sector, which is a key driver of the economy.”
When asked about the dynamic between Mozambican mineral resources and European needs, Christoph Neuberg said the following. “There are two main reasons why Germany is interested. The first reason that brings Germany to Mozambique is the issue of critical raw materials and the second is the joint project funded by the German government with the Mozambican Chamber of Mines (CMM) to help establish minimum conditions for Mozambique’s mining sector.” Neuberg sees an opportunity to introduce German companies based in Saxony to the Mozambican market. Saxony also has one of the oldest mining universities in Germany, which teaches and trains many Mozambican mining experts. “This project presents a win-win situation that will help bring development to local communities and the German economy. There are challenges, such as ESG criteria; Germany has new supply chain legislation that will soon become European law, which will be strict and require supply chains to be certified according to ESG standards. The project with CMM aims to raise awareness and find ways to help obtain certifications so that minerals can be extracted,” according to Neuberg,
The event was organized by the Konrad Adenauer Stiftung (KAS) & Chamber of Mines of Mozambique in Cooperation with IHK Chemnitz