9th MMEC edition – Eyes set on development

The discovery of a variety of mineral resources in Mozambique in the last few decades has attracted the interest of several investors. Their exploitation has elevated and transformed the country into a powerhouse in the extractive industry. The 9th Mozambique Mining and Energy Conference and Exhibition (MMEC), held recently in Maputo, only confirmed this reality.

For two days, April 26th and 27th, companies involved in the sector debated about the investment opportunities Mozambique offers in the mining and energy sector. At a conference held under the theme “Using Mozambique’s Natural Resources for Transformative and Sustainable Economic Development,” investors demonstrated their interest in continuing to invest and embrace different opportunities, given that the country has become increasingly attractive for major investments in natural gas, particularly within the context of energy transition.

In addition, the Economic Acceleration Package (PAE), announced by the Mozambican Government last August, has also created special conditions for investors to focus on the extractive and energy sector.

At the opening of the event, which brought together more than 300 sector experts, President Filipe Nyusi said the extractive industry in Mozambique has been growing, contributing 10.6% of Gross Domestic Product (GDP) in 2022 compared to 1.8% in 2011.

“This evolution was influenced by the development of mineral coal exploration projects in Moatize, Tete; heavy sands in Moma, Pebane, and Chibuto, in the provinces of Nampula, Zambézia and Gaza, respectively,” said Filipe Nyusi, adding that it also reflects the exploitation of rubies and graphite in Cabo Delgado and natural gas in Inhambane.

Regarding the return of TotalEnergies to the Afungi peninsula in Cabo Delgado, the head of state expressed optimism that this will happen soon because “there are improvements in security conditions on the ground.” “We hope that TotalEnergies can soon resume its activities to take advantage of the market opportunity window.”

On the investors’ side, there is hope that Mozambique will become a key player in solving the world’s energy crisis. However, the challenge is to have security in the country, especially in the exploration areas.

“The future is very promising for Mozambique’s oil and gas projects,” Exxon Mobil CEO Arne Gibbs began, before stressing that the size and quality of the country’s gas resources, as well as its location in relation to the European and Asian markets, make it even more competitive.

In line with the same optimism, Eni Rovuma Basin CEO Giorgio Vicini said there is an opportunity to replicate the Coral Sul project with the development of another platform, as Mozambique’s gas reserves can make a significant contribution to energy security in the European market. Therefore, “we have to act quickly; there are proven reserves, proven technology, a delivery track record achieved with Coral Sul, and the Mozambican Government has already demonstrated its commitment to supporting future developments.”

Meanwhile, lack of infrastructure combined with lack of access to financing for mega-projects are among several problems that, from investors’ perspective, must be solved for the development of the extractive industry.

According to Sasol’s senior production operations manager, Francisco Augusto, “Mozambique must ensure the creation and expansion of local markets that can have a multiplier effect on the economy and add value to natural gas.”

However, energy sector stakeholders argued for the need to formulate policies to address the impacts of climate change on the energy sector.

Edição 79 Maio/Junho| Download.