Resource Sector Mozambique

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1 New Markets - New Opportunities Resource Sector Published in 2018 by:

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3 General figures (2016 by Worldbank) The Republic of Time zone: UTC+2 Official language: Portuguese Currency: New Mozambican Metical (MZN) Capital: Maputo Land area: 801,590 km² Population: approx. 28 million Population density: 37 people per km² Rural Population: approx. 70% GDP per capita: approx.480 USD (Atlas Method) Population growth: 2.9% p.a. Prevalence of HIV, total (% of population ages 15-49): 12.3 % Life expectancy at birth: approx.57 years 1

4 ECONOMIC DATA Economic data Resource Sector After years of relative stability and growth, is currently facing a period of macro-economic turbulence. Unstable global prices, high partly unexplained foreign debt and strong inflation slowed down growth and led to a shortage of forex. With adjustment activities on the way and negotiations with donors and supranational institutions being held s economy should be back on a more stable growth path from 2018 on. Nevertheless, business environment reforms are urgently needed to attract more investment. GAUFF Engineering 2

5 Economic data 2012 to 2018 year Real GDP growth (%) Origin of Growth (%real change) Agriculture Industry Services Source: EIU 2017 Due to a political and macroeconomic crisis, growth has recently slowed down. Yet, the prospects are good. After a decade with an average growth of above 7% until 2014, GDP growth is expected to peak again in 2018/19. The mining sector will play an important role mostly with direct investment (DI) coming from abroad. Foreign direct investment peaked between 2012 and 2014 with a net inflow of more than 30% of GDP much of it in the mining /natural resources sector. However, agriculture remains weak as a pillar for development and poverty reduction and it does not contribute to growth, food security or job creation as it should. For many years, has been characterized by a chronic foreign trade deficit with little diversified export products and few value addition efforts within the country. Although some imports led to investment most of the trade deficit is explained by consumption and did not contribute to more production or import substitution. 3

6 ECONOMIC DATA Foreign trade 2012 to 2018 Resource Sector After years of relative stability and growth is currently facing a period of macro-economic turbulence. Instable Global prices, High partly unexplained- foreign debt and strong inflation slowed down growth and led to a shortage of forex. With adjustment activities on the way and negotiations with donors and supranational institutions being held from 2018 on economy should be back on a more stable growth path. Nevertheless business environment reforms are urgently needed to attract more investments. Economic data 2012 to 2018 year Exports fob (million USD) 3,856 4,123 3,916 3,413 3,351 4,643 4,390 Imports fob (million USD) 7,903 8,480 7,952 7,577 4,856 5,194 5,362 Source: EIU 2017 Exports: The Main markets for Mozambican products in 2016 were: The Netherlands 25.1%; South Africa 11.9%; India 12.4%; With the main products: aluminium, electricity, coal, gas, tobacco, sugar, and gemstones. Imports: The main suppliers in 2016 were located in South Africa 39.3%; PR China 11.7%; Bahrain 5.6%; the Netherlands 8.3% With main products: petrol, bauxite, machines, pharmaceuticals, cars, rice, cereals, and corn. Investment The investment climate in is relatively stable, which does not mean that it is good (see business environment). Nevertheless, investor confidence in 4

7 long-term project development is growing again, particularly in the extractive industries. In recent years, foreign direct investment (FDI) has increased steadily (31.8 billion USD in 2016). A record inflow of 5.9 billion USD was registered in Most FDI comes from South Africa, China and Portugal, larger part of this capital was applied in the extractive sector and associated infrastructure projects. For the future, numerous opportunities for downstream industrial projects are arising, such as gas liquefaction (4-6 billion USD), fertilizer production, energy production, chemicals etc. In order to attract more industry to the country, the government is setting up special economic zones offering tax breaks, for instance in the northern city of Nacala. Nonetheless, investors continue to face significant challenges. One hurdle is the country s lack of skilled workers, which means companies are forced to invest strongly into the training of their own personnel. Moreover, companies have often been expected to rely on their own initiative in terms of infrastructure. On the positive side it has to be mentioned that rising incomes from the resources sector are leading to public infrastructure projects. Development of foreign direct investment year Net inflow (million USD) 6,175 4,902 3,867 3,093 Cumulative amount (million USD) 19,968 24,870 28,737 31,830 Source: UNCTAD World Investment Report 2017 Business environment The business environment is still a challenge for. Even when compared to regional standards there is a lot to be improved. This applies not only to the physical infrastructure but also to regulations, bureaucracy, corruption, law enforcement etc. Ease of Doing Business 2017: ranked 138 out of 190 countries Corruption Perceptions Index 2016: ranked 142 out of 176 countries 5

8 ECONOMIC STRUCTURE DATA AND PROSPECTS World Economic Forum Global Competitiveness Index: ranked 133 out of 138 countries. Hermes Country Risk Rating: 4- high risk Economic structure and prospects Mozambican economy is characterized by a dual development. On one hand there is FDI, megaprojects and growth and on the other hand many informal businesses and small, less competitive companies which are not linked to the rest of the economy. It is estimated that the Mozambican economy counts approx. 50,000 formal companies with approx. 750,000 formal jobs, most of them in SMEs. The industry sector accounts for approx. 100,000 jobs, while mining offers less than 20,000 as it is quite capital intensive. According to the Mozambican Enterprise Survey2014 (CEMPRE) the extractive industries accounted for approx. 200 formal companies offering approx. 13,000 6

9 jobs. This is less than 2% of the total formal employment in. However, the natural resources industry has registered fast-paced growth rates over the past year, and this trend is expected to continue. Especially the gas and oil industries are believed to contribute to GDP and employment in the long run. Industries associated with the resource boom in particular are emerging as further growth sectors. The construction industry is benefiting from infrastructure improvements and the installation of international business operations. Transportation and communications, the energy industry and the domestic financial industry are also showing strong growth. In contrast, local manufacturing is lagging behind. depends almost entirely on imports of finished products, machinery and equipment, and on technical and advisory services from abroad. That means up-grading local industries and linking them to FDI remains a challenge. It has to be seen what the proposed Local Content Laws will bring. In regional terms, the greater Maputo/Matola area is still the economic, political and cultural centre of, accommodating most investments and jobs. Matola, where the Mozal Aluminium smelter is located, is the country s largest industrial region. Mineral and gas production sites are being developed in the central and northern provinces far from the capital, bringing new economic activity to the under-developed interior where there is clearly a huge lack of infrastructure and qualified human resources. There are also logistical needs: is traditionally marked by east-west development and logistics corridors (Nacala, Beira, Maputo). A North-south infrastructure is missing (railway, roads, energy, transportation service etc.). 7

10 OPPORTUNITIES ECONOMIC DATA IN THE NATURAL RESOURCES SECTOR Opportunities in the natural resources sector Despite the economic turbulence between 2014 and 2016 and partially declining commodity prices, compared to 2012, continues its way to become a key location for extractive industries. s economic upswing in the beginning of this century can be largely attributed to growth in the natural resources sector. There is a large variety of commodities that are already exploited; from metallurgic coal and thermal coal to iron ore in Tete province, from heavy mineral sands alongside the country s coastline, high-quality rubies in Montepuez to graphite in Ancuabe (both in northern Cabo Delgado). Gold mining in Manica and Niassa provinces is important, although mostly still done by the artisanal sector. Projects for gold mines are on the way. Sand, gravel, clay and dimension stone for the construction sector are exploited mainly in the southern part of. The south has thick sediment coverage and is therefore poorer in minerals, but closer to the main cities. Regarding oil and gas, on-shore production in Inhambane 8

11 and Sofala provinces is already ongoing and planned to be extended. Larger gas reservoirs have been discovered in the Rovuma Basin, offshore the northern Mozambican coast and exploitation is on the way. Metallurgical coal and thermal coal The commodity sector is diverse, however s mining sector remains dominated by coal extraction, mainly high-quality coking coal, i.e. metallurgical coal for steel production, sold for example by Vale as Chipanga Market Premium HCC. In land-locked Tete province, where coal mining is performed within the Permian Karoo formation, reserves for exportable coking coal amount to 23 billion tons (t). Export regions for coking coal are India, the Americas, Europe and Eastern Asia. Thermal coal, as a side product, is exported for electricity generation in power plants and for heating. Contributing 22% thanks to increased coal exports, the extractive industry was in 2014 the fastest growing sector of the Mozambican economy. Yet, the situation changed in 2014 when coal prices remarkably dropped. Low prices together with overblown high expectations and an inadequate rail and port network made coal projects rather inefficient. Amongst the 124 exploration licenses and 11 approved mining concessions, only four operating licenses have been issued. Coal mining in Tete became hardly profitable only large international corporations with long-term plans and investment kept producing. Since mid 2016 the situation has been improving due to the new rise of the (coking) coal price and infrastructural amendments. There have been rehabilitation works at the 575 km-long Sena Railroad Line from Moatize to Beira, increasing its capacity from 6.5 million tons (t)/year to 20 million t/year. Even more ambitious was the rehabilitation and partly new construction of the 912 km-long Nacala Logistics Corridor railway project (CLN), which crosses Malawi and included the construction of a new coal terminal at the deep water port in Nacala. Overall costs of this project are 4.4 billion USD. Test transport operation started in The biggest producer within the Mozambican coal sector is the Brazil-based international company Vale, running Moatize 1 and 2 mines. Moatize was the first coal mine and is s biggest one with a production capacity of 9

12 OPPORTUNITIES ECONOMIC DATA IN THE NATURAL RESOURCES SECTOR 18 million t per year. The metallurgical coal reserves of Vale s Moatize mine are estimated at 1.4 billion t. Vale International holds 80% of Vale, 15% were sold to Mitsui (Japan) in 2017 and 5% are locally held. The CLN railway line and coal terminal in Nacala belong at 35% to Vale and Mitsui each, 30% are hold by the Mozambican Ports and Railway Company (CFM). Of the originally 22 million t of coal Vale had planned to export 2017, only 18% were transported via the Sena Railway Line to Beira. A planned increase of produced coal comes along with forecasted lower production. In the 3rd quarter 2017, Vale s transported coal volumes were 38% higher than in the 3rd quarter The second mine in Tete is the Chirodzi open pit mine, operated by Jindal Africa, a subsidiary of the Indian private sector group Jindal Steel Power. Proven coal reserves are 700 million t, the annual capacity is 3 million t, whereas production was limited in the last years due to the coal price development. Chirodzi is linked to the railway network, using the Sena Railway Line to Beira. The third coal mine in Tete is Benga, run by India s International Coal Venture Limited (ICVL), a consortium created to assure the supply of metallurgical and thermal coal to India. Due to low coal prices, operations had been stopped in May 2016 but were restarted with the rising of coking coal prices in Until 2016, 35% of the mined material was coking coal, 10% thermal coal and the remaining 55% were rejects. ICVL owns 65% of Benga mine; Indian private sector group Tata Steel owns the remaining 35%. ICVL also holds 100% of two additional coal projects, Tete East and Zambeze. Minas Moatize, formerly run by Beacon Hill Resources (BHR), was operated until 2015 and then suspended. 10

13 Coal Projects in Tete Province Project Vale, Moatize 1 and 2 Annual production capacity Actual Production 22 million t /year 6.5 million t/year (2016) Jindal, Chirodzi 10 million t/year 3 million t/year (2016) ICVL, Benga 5.3 million t/year 3.6 million t/year, stopped May 2016, restarted 2017 BHR, Minas Moatize 0.6 million t/year stopped 2015, planned Source: Mining Weekly, presentations of Vale and Jindal Investment 3.8 billion USD Nacala railway and port 4.4 billion USD 50 million USD from 35 million USD Ongoing exploration of coal deposits in Niassa province has been done by 7 companies, including Vale, Riversdale Mining (Australia) and JOGMEC (Japan Oil, Gas and Metals National Cooperation) since Although results were partly promising, further exploration activities are on hold due to the development at the coal market. Iron /Vanadium/ Titanium mine with attached steel production continues to diversify its mining industry beyond coal, taking into account the coal price development of the last years for thermal coal and the worldwide growing share of renewable energies. One important project is the Tete Steel Project of Baobab Resources, which has the ambitious target to establish s steel industry, using the 100 m thick magmatic vanadiferous titano-magnetite ore resources of the Tenge/Ruoni with an iron grade of 36%. Steel production will be operative close to the open pit mine and use Vale s coking coal and local limestone for the steel production. In addition, an industrial free zone has been established in the area, attracting industries linked to steel production like re-rolling mills producing specialty steel products, rail production, ferro-vanadium refinery, prefabricated reinforced concrete sections, hydro-electric coal power plants, clinker and cement production, pigment/paint production utilising titanium by-product, vanadium battery pro- 11

14 OPPORTUNITIES ECONOMIC DATA IN THE NATURAL RESOURCES SECTOR duction etc. The project is planned to be commissioned in In 2017, around 60 million USD had already been invested. Heavy Mineral Sands By the Mozambican beaches, heavy mineral sands with an economic potential for the production of rutile, titanium, ilmenite and zirconium have been explored. Ilmenite and rutile are titanium minerals used to produce titanium dioxide (TiO2) pigment, titanium metal and welding electrodes. Zirconium is an important raw material for ceramics industry mainly for wall and floor tiles and sanitary ware. Zirconium is also used in the refractory and foundry industries. Ireland s Kenmare Resources has worked in Moma mine, Nampula Province, since Ore reserves are 1.52 billion t while resources are estimated at 6.5 billion t. In 2016, 30 million t of ore have been mined and 1,405 million t of heavy mineral concentrate (HMC), 903,000 t of ilmenite and 68,000 t of zirconium were extracted. In 2016, HMC production in Moma increased 28%, compared to Another ongoing project is Quelimane in Zambézia province, which has been run by China s Africa Great Wall Mining Development Group since In 2013, production started with 30,000 t of heavy mineral sands. The capacity is 600,000 t per year. Since 2010, the same company has been running under its subcontractor Haiyo operating a zirconium mining project Angoche in Nampula province with an installed annual processing capacity of 12 million t of heavy mineral sands. In Gaza province, Dingsheng Minerals is expected to start production in Chibuto/ Xai-Xai by July Operations taken over from BHP by Dingsheng are performed by two companies: Anhui Foreign Economic Construction Group and Yunnan Xinli Non-Ferrous Metals. Mainly titanium and ilmenite will be exploited; the volumes of the reserve are 500 million t, which are planned to be mined within a period of 15 years. For the production of 1 million t of concentrates per year, 471 million USD have been invested so far (2017). Savannah Resources Jangamo and Rio Tinto s Mutamba, Dongane and Chilubane 12

15 projects have formed since 2016 the collective Mutamba consortium project in Inhambane and Gaza provinces. Savannah s share is 51%. Resource has been estimated at up to 4.4 billion t at a heavy mineral grade of 3.9 % million t. Planned production start date is A pilot plant has been opened in December Pre-production investment, including contingencies, is 226 million USD. An asset of this project is the connection to the power line and the good access to roads and the ports of Maxixe and Inhambane. Graphite is becoming a center for graphite mining, too. This carbon variety mineral classically known for pen mines and lubricants is actually of rising importance, mainly due to its use with electrodes in batteries, for example for the growing electro mobility market. -based Twigg Exploration Mining, a subsidiary of Australian Syrah Resources, is developing the graphite deposit Balama. With reserves of million t of contained graphite, it is the world s largest graphite deposit. According to the United States Geological Survey USGS, the rest of the world s graphite deposits sum up to only 77 million t. Based on given figures, the life of mine (LOM) would reach with a production rate of 2 million t per year nearly 60 years. During the production phase, which is planned to start in 2018, the number of employees will be approximately 200. Australian Triton Minerals explores graphite deposits in the vicinity of Twigg in Balama North. In 2014, exploration drilling was conducted in four exploration zones, leading to the assumption that between 730 and 1,200 million t of 5-6% graphitic carbon mineralisation could be available. There is an ongoing exploration done by Australia s Mustang Resources Lda. in the same area along with the activities of Syrah Resources and Triton Minerals. Further to the East of Cabo Delgado, the Dutch-German company AMG Graphit Kropfmühl (AMG GK) took over the existing Ancuabe graphite mine that had been closed in The mine was reopened in June 2017 after an investment of 12 13

16 OPPORTUNITIES ECONOMIC DATA IN THE NATURAL RESOURCES SECTOR million EUR. The capacity of the mine was increased from 6,000 to 9,000 t of graphite per year. Tantalum The Highland African Mining Company (HAMC) closed their Marropino mine in Zambézia province in 2013 due to high production costs. Exploration plans in Morrua mine have not been transacted yet. Morrua mine in Zambézia represents one of the largest tantalum reserves in, bearing reserves of 7.5 million t of ore grading 0.07% tantalum. Ruby A special type of mining is Montepuez Ruby Mining Lda. (MRM) in Montepuez, Cabo Delgado province, because mining for ruby and corundium is done in grand industrial scale here. Usually, this kind of gemstones mining is done in a smaller scale and mostly by artisanal miners. 75% of the project is owned by Gemstones Lda. and 25% by Mwiriti Lda. The open pit mine provides the technical capacity to move 150 t of soil per hour. MRM has invested 70 million USD into the project, excluding taxes and royalties of up to 55.3 million USD paid to the Mozambican government in 2016.The mine is expected to exploit 10,000 ct (metric cerate) of rubies per year. 322 workers have been listed so far (2017). Australian Mustang Resources Lda is investigating in the area connected to Gemstones Lda. and close to Namahaka village, where ruby is mined on a small-scale base. Gold Manica province is `s main gold exploration area, where mining is done by artisanal miners. Small-scale gold mining is also found in Tete, Niassa and Cabo Delgado provinces. Clean Tech Mining in Manica has done ongoing large-scale gold mining since The processing plant has a capacity of 50 t of soil per hour. The mine employs around 200 permanent workers. The complete investment was 3.5 million USD. 14

17 UK-based XTRACT Resources acquired Manica Gold Project from Australian Auroch Minerals for approx. 11 million USD, excluding the USD taxes in The company assumes that in 7 years 3.3 million t of ore will be processed from both open pit and underground mines to produce 215 koz gold (6,095 kg). The indicated resources are 782 koz (22169 kg). Operations started by the end of Exploration for alluvial gold is also ongoing, e.g. by Chinese Republic Gold at Mucurumazi, Manica province. Rare Earth Deposits Along the Malawian border in Tete province, Mágoè district, the opportunity for rare earth deposits is given. Australian Kimberley Rare Earths has detected occurrences for rare earth minerals, while Anova Metals is targeting gold in the same zone. Phosphate Evate deposits at Monapo in Nampula province would allow an annual production of 2 million t of phosphate. In 2014, Vale abandoned the project, which would require an investment of 3 billion USD. In 2017, INAMI invited investors to submit proposals. Another deposit is Muande in Tete province. Nickel In 2012, important nickel reserves of estimated 23 million t have been discovered in the area of Montepuez, Cabo Delgado. Another deposit is the Mavita coppernickel-cobalt project in Manica, from which Rio Tinto withdrew. An exploration licence had been given to Canada-based AXMIN in Diamond In 2017, exploration results suggested the existence of kimberlites in Gaza province, which might bear diamonds. Further exploration is ongoing. 15

18 OPPORTUNITIES ECONOMIC DATA IN THE NATURAL RESOURCES SECTOR Mineral Resources Mining Projects in Project Company Commodity Tenge/ Ruoni Tete Steel Project Baobab Resources Iron, Vanadium, Titanium: Moma, Nampula Kenmare Resources Heavy Mineral Sands; titanium, ilmenite, zirconium Quelimane, Zambezia Africa Great Wall Mining Development Group Heavy Mineral Sands Angoche, Nampula Haiyu Mining Ltd. (Africa great Wall Mining Development Group) Heavy Mineral Sands; Zirconium Chibuto, Xai-Xai, Gaza Dingsheng Minerals SA Heavy Mineral Sands Under development: Mutamba/Jangamo Inhambane Under development: Balama, Cabo Delgado Savannah Resources/ Rio Tinto Twigg Exploration Mining (Syrah Resources) Heavy Mineral Sands Ilmenite, Zirconium Graphite Exploration phase: Balama North Cabo Delgado Ancuabe, Cabo Delgado Montepuez, Cabo Delgado Triton Minerals Ancuabe Graphite Mine AMG GK- (Graphit Kropfmühl) Montepuez Ruby Mining Limitada Graphite Graphite Ruby, Corundum Manica, Manica XTRACT Resources Gold Manica, Manica Clean Tech Mining Gold Source: Companies Websites and MIREME 16

19 Resources Production Investment 759 million t To be started in billion USD 60 million USD (in 2017) 6,507 million t total 1,405 million t HMC (Heavy Mineral Concentrate) 900,000 t ilmenite 68,000 t zirconium 1.12 million t total: 1 million t ilmenite 0.12 million t zirconium 774 million USD (2016) 600,000 t per year 163 million USD 2 million t 12 million t per year capacity 150 million USD 1,764 million t 33 million t per year from 7/ million USD 4.4 billion t, 3.9% total heavy minerals Planned: 574,000 t per year 226 million USD Reserves: million t with 16.6% TGC (total graphite content) Resources: 1.2 billion t with 11% TGC 2 million t per year to process 380,000 t per year graphite concentrate 193 million USD + 7 million USD contingency EEstimated million t 1 million t 60,000 t per year; start in June million EUR in recovery 150 t soil per hour; 10,000 ct [metric carate]/year planned for koz (22,169 kg) Planned: 30,7 koz / year (870 kg / year) 70 million USD 11.7 million USD Processing plant capacity: 50 t/h 3.5 million USD 17

20 OPPORTUNITIES ECONOMIC DATA IN THE NATURAL RESOURCES SECTOR Gas s onshore natural gas production is operated by South Africa s Sasol in Inhambane province, which holds proven reserves of 2.6 trillion cubic feet (TCF). The liquid natural gas is produced and processed at a central facility in Temane before being transported to South Africa. Gas for domestic use is transported to southern. In addition, Sasol started to develop its Production Sharing Agreement (PSA) license in The PSA development is an integrated oil, liquefied petroleum gas and gas project in northern Inhambane province. The first phase of the project includes 13 wells and an LPG production facility at an estimated cost of 1.4 billion USD. Project Company Commodity Resources Production Investment Inhambane Gas Project Inhambane PSA project Anadarko Deep Water Project, Cabo delgado Eni Offshore Project, Cabo Delgado SASOL, ZA Gas (LNG) 4.8 TCF [trillion cubic feet] SASOL, ZA Oil, LPG, LNG 0,8 TCF- Gas 200 Mbbl- Light Oil 194 million GJ of gas per year (2016) LPG- 20 million t 86 MScf/d 15,000 bbl/d Anadarko Gas (LNG) 100 TCF Proposed Onshore LNG production 12 million t per year (Anadarko) ENI/ Exxon Gas (LNG) 84 TCF Approved offshore floating LNG (FLNG) project for production of 3.4 million t/year 1.2 billion USD 23 billion USD 8 billion USD Source: Websites and MIREME, INP 18

21 A new chapter in Mozambican history is about to start in 2019 with the offshore gas production on major scale. USA s Anadarko and Italian ENI have discovered resources of far more than 100 TCF in the Rovuma Basin, which spreads offshore from Cabo Delgado province and continues further north off the Tanzanian coast. Anadarko recently invested 770 million USD into its offshore activities. The total investment sum is reported to be 30 billion USD. Shareholders are Anadarko (USA) with 26,5%, Mitsui (JAP) with 20%, ONGC (India) with 16%, ENH () with 15%, Bharat (India) with 10%, PTTEP (Thailand) with 8,5% and Oil India Ltd. with 4%. Shareholders of ENI s concession of area 4 are ENI East Africa (EEA) with 70% and Galp Energia (Portugal), Kogas (South Korea) and ENH () with each 10%. Eni East Africa is held by ENI with 71.4% and by CNPC (China) with 28.6%. 19

22 ADVISORY ECONOMIC SERVICES DATA AND SUPPORT SCHEMES German Advisory services and support schemes AHK Southern African-German Chamber of Commerce and Industry The German Chambers of Commerce Abroad (AHK): The network of German Chambers of Commerce Abroad (AHKs), which consists of bilateral chambers of commerce abroad, delegations and representatives of German business, advises, consults and represents German companies worldwide that wish to develop or expand their business activities abroad. The AHKs are institutions of German foreign trade promotion. The Association of German Chambers of Commerce e.v. (DIHK) continuously coordinates and develops the network of German Chambers of Commerce Abroad. They are co-funded by the Federal Ministry for Economic Affairs and Energy (BMWi). GIZ: Informal construction stone 20

23 Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH As a German public-benefit federal enterprise, GIZ has been involved in international cooperation for more than 50 years. A large proportion of its commissions are carried out on behalf of the Federal Ministry for Economic Cooperation and Development (BMZ), but GIZ also works for other federal ministries and public and private partners in Germany and abroad. It is currently active in more than 120 countries. GIZ provides professional expertise in developing appropriate business models and creating favourable economic and political frameworks. The GIZ office in Maputo provides companies with contact details for government agencies, associations and other local partners. GIZ provides advice on value chain management and environmental and social standards. Training courses and expert placement are also available to facilitate the international assignment to staff. Between 2013 and 2017, GIZ ran together with BGR, a programme that aimed to strengthen the natural resources sector by improving governance in the mining sector. Main tasks were: Support to the Mozambican Ministry of Mineral Resources & Energy (MIREME) at central level Resource governance in relevant regions at local level Support to the Extractive Industries Transparency Initiative (EITI) Promotion of the public-private dialogue between MIREME and mining companies Since 2017, GIZ s support to the extractive sector in the country has continued within the Good Financial Governance Programme. The focus is now on the transfer of 2.75% of revenues from the mining, oil and gas industries to the development of local communities as well as on safety in mines 21

24 ADVISORY ECONOMIC SERVICES DATA AND SUPPORT SCHEMES Bundesanstalt für Geowissenschaften und Rohstoffe (BGR) The German Federal Institute for Geosciences and Natural Resources, BGR, is the Geological survey of Germany under the Ministry of Economy and Energy. BGR s general tasks are to collect, store and provide geoscientific expertise of Germany and abroad to the government and the public. BGR s activities in the international cooperation sector are, like GIZ, funded by the German Ministry for Economic Cooperation and Development (BMZ). In sectorial, regional and bilateral projects, technical support in the geoscientific sector is transferred to developing countries, mainly in Africa, Asia and Latin America. Since 2013, BGR has been running a BMZ-funded project with MIREME to strengthen public management in the mining sector, which is linked to GIZ s activities. Main components are: Capacity building and staff training in different geoscientific issues, related to licenses of mining activities Support in the Potential Analysis of specific commodities Support in economic and price building issues for commodities Support in procedures in the mining sector Laufend/Afrika/2002_ _Mosambik_Staerkung_Bergbausektor_en.html KfW Development Bank KfW Development Bank implements financial cooperation with developing and emerging countries on behalf of the German Federal Government. Staff at the Frankfurt am Main headquarters and the almost 70 regional offices cooperate with partners around the world. The aim is to fight poverty, secure peace, protect the environment and climate and promote equitable forms of globalisation. Amongst other things, KfW Development Bank finances investment, structural reforms and in-process advisory services in the partner nations. The inputs and services associated with implementation are launched to tender internationally by the partners. German companies are welcome to submit tenders. 22

25 Opportunities are thus opened up to German export companies wishing to promote their products in challenging future markets. developpp.de Through the developpp.de programme, the German Federal Ministry for Economic Cooperation and Development (BMZ) provides companies investing in developing and emerging countries with financial and, if required professional support. The partner company is responsible for covering at least half of the overall costs; BMZ contributes with up to a maximum of 200,000 EUR. These development partnerships with the private sector may last up to a maximum of three years and cover a wide variety of areas and topics. BMZ has appointed three public partners to implement the programme on its behalf: DEG, GIZ GmbH and Sequa GmbH. Companies taking part in developpp.de always cooperate with one of these public partners. Companies are invited to register their interest with DEG, GIZ or Sequa by participating in one of the ideas competition held four times a year. These are open to all German and European companies and their subsidiaries in developing countries as well as emerging economies. Development partnerships with the private sector with the potential to achieve outstanding development benefits and involve several countries may receive more generous funding as Strategic Development Partnerships. 23

26 CONTACT ECONOMIC DATA Contacts BGR Maputo Office: c/o Direcção Nacional de Geologia e Minas (DNGM) Praça 25 de Junho, no andar Maputo, T or T E + bgrmozambique@gmail.com Published by: Bundesanstalt für Geowissenschaften und Rohstoffe (BGR) B 4.1 Internationale Zusammenarbeit / International Cooperation Stilleweg 2 D Hannover T E poststelle@geozentrum-hannover.de Representative Office of the Southern African-German Chamber of Commerce & Industry (AHK) in Maputo Rua António Simbine, no211 Sommerschield Maputo, T E maputo@germanchamber.co.za I GIZ Programme C.P GIZ office C.P Av. Francisco Orlando Magumbwe, nº 976 Maputo, T E giz-mozambique@giz.de Southern African-German Chamber of Commerce and Industry (AHK) 47 Oxford Road Forest Town ZA 2193 Johannesburg, T E info@germanchamber.co.za Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH Dag-Hammarskjöld-Weg 1-5 D Eschborn T E info@giz.de I Credits Cover and photos: GIZ and GAUFF Engeneering Design and Layout: GIZ, BGR, AHK Kindly supported by: 24

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