Mozambique’s growing mining industry

At the 5th German-African Business Summit in Nairobi, Geert Klok, Chairman of the Chamber of Mines of Mozambique, shared insights on the significant growth of Mozambique’s mining sector, which has provided thousands of direct and indirect jobs over the past two decades. This expanding industry has created a wealth of business opportunities for both local and international suppliers. The country is notably a large producer of coal, heavy sand minerals, natural graphite, and gemstones, with mining activities often taking place in rural regions that have traditionally lacked qualified personnel. The mining sector has played a vital role in addressing this gap by training skilled professionals and fostering the growth of various supply chains in spare parts, consumables, and logistics.

During a panel discussion, moderated by the German Ambassador to Mozambique, H.E. Ronald Munch, Klok elaborated on the current status of Mozambique’s mining industry and its future prospects. He discussed the establishment of industrial parks, such as the Moz Parks initiative, which aims to develop parks in all provinces, with mines and oil and gas projects serving as anchor clients. The first of these parks opened in Nampula province next to the Kenmare heavy sands mine.

Cedric Simonet, another panelist, highlighted the relatively positive business environment in Mozambique but pointed out that while the mining cadastre system is transparent, with mining licenses displayed publicly, the bureaucratic processes involved in obtaining a license are more time-consuming compared to countries like Kenya, where applications are processed online and often completed quickly.

Gil Bires added to the conversation by discussing the Mozambican government’s PRONAI program, which aims to transform the country into a hub for mineral processing. This initiative is designed to shift the focus from exporting raw commodities to adding value locally, which will generate more jobs, increase tax revenues, and boost the economy.

On the relationship between Mozambique’s mineral resources and European demand, Christoph Neuberg from Germany explained that two main factors drive Germany’s interest in Mozambique: the critical raw materials issue and a collaborative project between the German government and the Chamber of Mines of Mozambique. The project aims to improve conditions within the mining sector and create benefits for both local communities and the German economy. Neuberg also pointed out challenges related to Environmental, Social, and Governance (ESG) criteria, particularly with new European laws on supply chains that will require certification. He sees potential for German companies, particularly those from Saxony, to expand into the Mozambican market. Additionally, Saxony’s mining university plays a key role in training many Mozambican mining professionals.

The event was organised by the Konrad Adenauer Stiftung (KAS) and the Chamber of Mines of Mozambique in cooperation with IHK Chemnitz, further strengthening the ties between Mozambique and Germany in the mining sector.

The discussions at the summit underscored the growing importance of Mozambique’s mining industry and its potential for global collaboration, particularly with European nations, to drive mutual economic growth and sustainable development.

Tirupati Graphite PLC (LON:TGR) is a fully integrated specialist graphite and graphene producer, with operations in Madagascar and Mozambique. The Company is delivering on this strategy by being fully integrated from mine to graphene. Its global multi-location operations include primary mining and processing in Madagascar, hi-tech graphite processing in India to produce specialty graphite, and a state-of-art graphene and technology R&D center to be established in India. 

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