IN THE STOPE
initial USD55-billion to USD60-billion has to be spent by 2024
because these companies have off-take agreements in place
to deliver gas in the next five years. The second tranche of that
investment is expected in 2023/4.
In the meantime, there has been an influx of oil and gas
exploration companies searching for good deposits outside of
the Palma/Pemba area. A number of companies are exploring
blocks near Nacala and Beira and there is even exploration as
close as 100km north of Maputo, which is extremely exciting
from a South African perspective.
So, is it safe to say that this is a long-term project that will
create wealth and opportunity in the region for many years
to come?
This is not just a once-off project rolling out over five years.
These are projects that will last for 30 to 40 years. It’s not
simply about building an LNG train and then everybody goes
home. There are operations, maintenance, and cities that
develops around this infrastructure, there is an enormous
amount of development in these areas.
Furthermore, Cabo Delgado also hosts some of the world’s
biggest high-quality jumbo flake graphite deposits, and
those are only about 100km from Pemba. In addition, there
are great deposits of gemstones like rubies and massive
agricultural and tourism potential in that area. It is really
an integrated opportunity in a corridor stretching for
about 400km from Pemba to Palma. There are many, many
opportunities in Mozambique.
It’s not about the actual LNG infrastructure. In that part
of Mozambique there is almost no infrastructure, so
infrastructure like roads, power, water and sanitation needs
to be put in place. There will be more than 50 000 workers on
site, and they will need permanent housing and recreational
facilities. It is not only about extracting and exporting gas.
Further south, in Tete, the coal mines are starting to stir again.
Vale is looking to up their coal production, and there has
been talk about a couple of coal fired power stations and
a few hydro powered stations. Mozambique is an exciting
place right now, and South Africa is in a good position to take
advantage of that.
There have been numerous reports about attacks and
violence in the north of Mozambique. What is your take on
the situation?
Obviously, that is a concern. Our understanding is that
the security situation is largely under control and that the
key routes from Pemba to Palma are well secured by the
government. Most of the attacks happened further inland. I’m
not saying it’s perfectly safe, but it would appear to be pretty
www. africanmining.co.za
African Mining Publication
"Nigeria is the gateway
into West Africa, while
Ghana and Côte d'Ivoire can
be regarded as gateways
into certain other hubs of
influence in West Africa.
much under control. I don’t think that will be a great show-
stopper, and certainly nobody in Mozambique thinks so.
Which other African countries would you regard as hotspots?
The whole eastern seaboard of Africa has huge potential and
could provide business opportunities for many years to come.
Kenya, Tanzania, Rwanda and Ethiopia are set to grow at
phenomenal rates over the next few years. Kenya and Uganda
are both making concerted efforts to start delivering oil as soon
as possible, and there is a healthy regional rivalry of who will
deliver first. These projects are not on the same level as what is
happening in Mozambique, but they are also not insignificant.
The value of Uganda’s Lake Albert project is about USD10-billion
and in Kenya the figures looks similar.
In West Africa, Nigeria remains a key market, even with forex
issues at present, with Cote d’Ivoire and Ghana as other key,
fast growing economies. Both of these are also gateways to
the newly developing mining jurisdictions in the Sahel to the
north, which is also starting to attract much attention from
donors and investors to stabilise and grow the area that is
seen as a gateway for migrants to Libya and eventually Europe.
Moreover, both Senegal and Mauritania are growing hubs for
oil and gas development, with a number of large projects being
developed or underway, which offers good opportunities for
our companies. The numbers are not the same as those in East
Africa, but the fit with our natural export profile is better.
African Mining
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