Maputo, Mozambique — 1 June 2012 – The government of Mozambique wants Brazilian mining giant Vale to list 10% of its local venture on the Mozambican stock exchange to widen participation in a coal mining boom in the impoverished African state.
Macauhub News Agency reports that, according to proposed revisions in legislation, companies investing in Mozambique could be required to reserve between 5 and 20% of their local companies for placements on the bourse.
“We are now preparing all the processes and defining the rules, and once we finish, the stake will go to the market,” minerals minister Esperanca Bias assured. “We cannot say when exactly it will happen, but it will be this year.”
Vale officials were not immediately available for comment.
Vale started producing coal at its Moatize mine last year and has approved a US$6 billion expansion of the project to lift output to 22Mtpa from the 11Mtpa it expects to mine initially.
Source: Macauhub News Agency. For more information, click here.