Natural Resources in Mozambique Mozambique is on the Eastern part of South Africa and has considerable amount of natural resources, of which major part is yet to be explored including coal, Gold, titanium, bauxite etc. The exploration and export of natural resources positively contributes to the poverty reduction and economic growth of the country. Natural resources are the gift to the country given by the nature and can be divided into renewable and non renewable resources. The principal natural resources of Mozambique are coal, Gold, iron ore, titanium, tantalum etc. Mozambique is blessed with abundance of natural resources; in fact there is no deficiency in Mozambique natural resources. Thus, natural resources help in boosting up the economy of Mozambique. In Mozambique dependence on forest resources is high because almost 70% of Mozambique is covered in forest. Approximately 80% of the total population lives in the rural areas where poverty detected is 54%. Natural resources can generate economic dynamics and a flow of income can help the Mozambique Government in fighting the poverty and stimulate economic growth. Natural Resources Laws in Mozambique Mining & Exploration activities in Mozambique contributes only 2% to GDP and thus the Mozambique’s rich mineral deposits remain largely undeveloped. The Mozambican Government is firmly committed to encourage foreign investment for developing Mozambique’s fledging mining industry. Recently, a new mining and geological policy has been implemented with the existing legislation, which is likely to improve the country’s competitive position in the region. All applications for exploration and mining rights have to be addressed to the Minister of Mineral resources and Energy for processing by the National Directorate of Mines. Coal Sector in Mozambique Mozambique is already exporting coal from Matola Coal Terminal at Maputo. Mozambique also exports coal to the neighboring state of Malawi, but the Government expects export on a large scale in the coming years. The growing mining sector in Mozambique is a source of export income and also creates a large number of well paid jobs. Many Mozambicans have worked in South African Mines and so they have plenty of mining sector experience in that region. Apart from export, coal can be used for domestic industries and thermal power plants. The new coal mine in Tete Province of Mozambique is a reflection of the government’s policy of using mineral wealth as a lever to eradicate poverty from Mozambique. The rights to the Mozambique coal mines have been given to multinational companies at a rapid rate in recent years. 36,742 tons of coal production was expected in Mozambique in 2003 comparing 43,512 tons in 2002. Mozambique has substantial coal deposits situated in the Moatize and Mucanha - Vuzi coal basins in the Tete province. The basin contains seven coal seams and has reserves estimated at 750 Mt. The Mucanha †Vuzi basin is said to contain as much as 3 600 Mt coal reserves. Coal production from Moatize reached a peak in the early 1980’s at 5,00,000 tons per year. Mozambique has recently announced plans to export 2Mt of coal to Nigeria annually. These studies reveal that Mozambique is emerging as a great potential source of thermal and coking coal. Rachana Global is a mining company and has successfully acquired license in the areas of Tete and Mutara provinces of Mozambique. The company is focused on growth through investment in suitable Mozambique mining opportunities and thus planning to develop itself as a diversified mining house in the years to come. According to Mr. Manoj Sompura, the Promoter & Managing Director of Rachana Global, the group is successfully involved in the coal mining process in Mozambique. It has identified sources of exploring and mining coal in various areas of Mozambique such as Minjova basin, Zambezie basin and few more. Our mining company is well equipped with state-of-the-art facility for finding new avenues for mineral mining & exploration in various parts of the world.
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