Mozambique wants to double new mining investments in the next five years and boost economic growth by fast-tracking mining licenses, National Mining Director Fatima Momade said. Momade told Reuters in an interview on Saturday that 50 companies invested $203 million in prospecting and exploration between 2006 and the first half of 2007.
"We hope to double these (new) investments to $410 million in the next five years. We are aiming for major investments in gold, coal, copper, tanzanite and heavy sands explorations", she said. A project by Irish firm Kenmare Resources Plc in titanium bearing heavy sands in the northern province of Nampula will start operating next week.
BHP Billiton aims to start production at its 800,000 tonnes per year Corridor Sands ilmenite project by 2011. Momade said the Corridor Sands projects would create at least 1,000 jobs.
The government will fast-track the issuing of licenses to companies as an incentive and hopes the sector will create 20,000 jobs and entice the 72,000 miners working in neighbouring South Africa. "The mining sector has potential but remains underdeveloped, we want to boost the industry and create more jobs", she said.
Momade said junior international mining companies listed on the stock exchanges of Canada, Australia and Britain led the growth in prospecting.
The supply of grid power to the mines, improved roads and additional services would improve the living standards of the people near the mines, she said. "This is our priority ...to promote economic growth, improve the balance of payments, and guarantee increased participation in the sector by Mozambican businesses", Momade added.
Mozambique's GDP growth has been among the highest in the world - an annual average of 10 percent a year over the past few years. But the former Portuguese colony remains one of the world's least developed countries, with a per capita annual income of US $210. It is also one of the most heavily indebted nations in the world with public and foreign debt at $5.2 billion. The government sees benefits for the economy from income tax royalties, and the duties paid on consumables and non-mining goods.