London, England --- 17 October, 2013 - Mozambique will see a rapid growth in its mining sector over the next few years, as a combination of investment into its sizeable coal reserves and a relatively strong business environment combine to provide rapid growth in output.
Quoting a report released here by Business Monitor International, allAfrica.com said that Mozambique was set to be one of the major growth stories in the global mining sector.
The researchers “expect the value of the country's mining sector to grow from US$263 million in 2012 to US$735 million in 2017”. This represents a jump from 1.8% of Gross Domestic Product (GDP) in 2012 to 2.9% in 2017.
The report pointed out that the country's coal sector would expand over the next few years. Almost all of the coal mined would be exported, giving Mozambique the potential to become one of the largest global exporters, with India and China the main destinations.
The report warned, however, that there were still concerns about the capacity of Mozambique's infrastructure to cope with the projected increase in production. It noted, “there have in fact been positive developments, with Mozambique's Nacala port ready to export its first shipment of coal from December 2013”.
In addition, the analysis stated that the government planned to submit a draft of a revised mining law by the end of 2013 in a bid to streamline procedures and attract more investment to its booming coal sector.
“The government has stated that its new mining code will not change royalties or mining taxes, and is purely to speed up the licence process and reduce bureaucracy for mining investment” "’ a move that appears to be wholly positive for the sector.
Last week, BMI brought out a report on risk factors in Mozambique. It estimated that GDP growth would more than double from 7.1% this year to 15% in 2020. This is when BMI expects the country's natural gas fields to begin production.
Recently, BMI estimated that Mozambique would be the fastest growing economy in the world over the next decade. It calculated that accumulated GDP growth by 2022 would be 158.8%.
Source: allAfrica.com. For more information, click here.