E magazine energy & extractive industry moz

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The First and Only E-Magazine with expertise in energy and mining in Mozambique

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E magazine energy & extractive industry moz

  1. 1. NR. 26NR. 26NR. 26NEWSLETTERBIWEEKLY- JUNE 20, 2013YEAR II • Bilingue (ENGLISH VERSION)ASSOCIAÇÃOMOÇAMBICANAPARAODESENVOLVIMENTODOSECTORDAENERGIA&INDÚSTRIAEXTRACTIVAA major challenge in Mozam-bique is access to energy inrural areas for economic andsocial development. Accordingto the statistics almost 70% ofMozambique’s population hasno access to electricity, so re-newable energy through so-lar panels is the unique viablesolution in some places of thecountry.A team of students fromOWU (One World University) in2011/12 led the implementationof a project that consisted of in-stalling six solar power stationsfor recharging mobile phonesand lamps and train communitypeople involved in using themand developing their activitiesand their business.The project was implement-ed in the towns of Alto Enchisa,Mussuquelane, Ndivudane,Xigubuta A and Mafavuca I andSOLAR POWER LIGHTENINGSOLAR POWER LIGHTENINGTHE LIVES OF CHANGALA PEOPLETHE LIVES OF CHANGALA PEOPLEII, all of them located in theChangalane administrativepost.OPERATION OF SOLARPOWER STATIONSEach station is managedby two entrepreneurs who runthe station, which providespower through a system ofsolar panels with a capacity torecharge 60 lanterns and 20mobile phones. The entrepre-neurs are responsible for guid-ing the panels in the correctdirection in order to conserveenergy necessary for recharg-ing, and.UTILITY OF SOLARPOWER STATIONSThe stations ensure nightlighting, useful for children todo schoolwork and adults dohousehold tasks like takingcare of animals and cooking,have literacy classes and de-velop income-generating ac-tivities. At the same time, toreduce respiratory diseasesresulting from smoke inhala-tion the base of the lamps par-affin.of a projstalling sfor rechand lamMozambique:CompaniesMozambique:Companiesmustreportofanyoilmustreportofanyoildiscoverywithin24hoursyyand more...and more...The Mozambican Association for the Developmentof the Energy Sector and Extractive Industries (AMEX)under the strategic plan of the Energy MozambiqueMedia Project in partnership with ADPP reinforce itsworks concerning the importance of Communicationfor Development in energy sector in Mozambiquethrough a project funded by EEP and implementedby OWU in Changalane, Namaacha District, MaputoProvince in Mozambique.Cont. pag. 2Pag. 6Pag. 6Oil legislation under approvalDear Reader,Welcome to the XXVI edi-tion of the E-Magazine En-ergy & Extractive Industry;your first and only source ofexpertise concerning infor-mation and news on energyand mining in Mozambique.There is no doubt: Com-munication is one of themost important fields ofknowledge of any societyworldwide, a fundamentalright that is configured in avital process of exchange ofinformation of interest to thehuman person.In parallel, communica-tion has played an espe-cially crucial role in buildingdemocracy and citizenshipof Mozambicans. The con-struction of citizenship andparticipation of civil societyin different spheres of theState, has contributed alot in managing conflicts ofvarious kinds in the processof consolidation of our de-mocracy.So the Energy Mozam-bique Media Project be-comes the first and onlymajor channel acting aspromoter of Communicationfor Development concept,the right to information andcorporate citizenship in theenergy and mining sector inMozambique.Congratulations to theMozambican people!Happy Reading!
  2. 2. The aim of the university is to train mod-ern intellectuals who conquer knowledgeand have the ability to use not only withinthe profession, but as people striving to-gether with others to solve the urgentchallenges that humanity is facing and willface in the coming decades.Beneficiaries of Solar Power StationsSome 2,400 families have been using360 bulbs available for hire and also theservices of recharging mobile phones.Community members also received train-ing on solar energy, use, maintenance andsustainability of the stations.• Twelve members of the local com-munity have become managers ofsix solar stations and were trainedin management and maintenanceof the stations.• 200 Small local entrepreneurs weretrained in the field of business man-agement.• Two Elementary Schools receivedsolar stations for use in night litera-cy.• One Sustainable Energy Project fora wide community.PARTNERS IN THE PROJECTThe project “Lightening the Lives ofChangalane People” is the result of amulti-institutional partnership and fits the“Energy and Environment PartnershipProgram with Southern and East Africa,EEP - S & EA”.The global oil market faces unprec-edented challenges and opportunities.One thing seems clear: The oil marketas we know it today will have trans-formed in five years. The IEA’s 2013 Me-dium-Term Oil Market Report (MTOMR)sketches out the likely changes to 2018and what they mean for the world. Itsforecasts are based on hard facts andthe most likely assumptions: current ex-pectations of economic growth, knowngovernment policies likely to affect oilsupply and demand, regulatory changesthat may impact oil market participationand oil price formation, oil field declinetrends, and confirmed investments inthe upstream, midstream and down-stream.Last year’s MTOMR challenged con-ventional wisdom with its analysis of thehuge potential unlocked by the NorthAmerican supply revolution and the Iraqiresurgence. Building on this foundation,the 2013 MTOMR turns to the formida-ble challenges facing the developmentof these new resources, while furtherexploring the transformation it brings toall aspects of the market. The impact ofpolitical turmoil in the Middle East and2 analYsee-MAIL: energiamoz@gmail.com / status.energiamoz@status.co.mzWebsite: www.energiamocambique.co.mz Newsletter nr. 26 - JUNE 20, 2013THE OWUThe OWU (One World University) is aprivate university. The campus is locatednear the OWU Changalane in MaputoContin. of pag. 1WORLD: IEA launches Medium-Term OilMarket Report 2013The global oil market faces unprecedented challenges and opportuni-ties. One thing seems clear: The oil market as we know it today will havetransformed in five years.ProvinceThe OWU applies modern teachingsprinciples and students are the drivingforce in their individual and collectivelearning in the university governance andwork in the community and in the nationaland international scene.OIL & GAS:According to our sources, Agencia Na-tional de Petroleo de Sao Tome e Principe(ANP-STP) will shortly begin direct negoti-ations with Sonangol Co Limited concern-ing block 2 in the offshore of Sao Tome’sexclusive economic zone.ANGOLA: SonangolANGOLA: SonangolAfrica is also assessed.On the demand front, the Report ex-amines the continuing redistribution ofdemand by region, fuel-on-fuel com-petition between oil and natural gas,the short-term prospects for efficiencygains, and the shifting composition ofthe demand barrel.Mining companies based in the Euro-pean Union will be forced in future to pub-lish highly detailed information about theirbusiness on a project-by-project basis andreveal payments of over €100,000 theymake for taxes, bonuses and royalties incountries where they operate.AFRICA :AFRICA :Transparency thrustTransparency thrustupon Eureopean minersupon Eureopean miners
  3. 3. Zimbabwe’s Zanu-PF plans measureZimbabwe’s Zanu-PF plans measureto seize stakes in foreign minesto seize stakes in foreign minesGold One InternationalGold One Internationalwill start goldwill start goldexplorationexplorationin Mozambiquein MozambiqueZimbabwean President RobertMugabe’s party has proposed a measureto seize majority stakes in foreign-ownedmines without paying compensation,ahead of an election expected this year.According to a draft in our hands,Mugabe’s ZANU-PF wants to changelaws compelling foreign companies, suchas the world’s top two platinum miners, toturn over majority stakes to nationals with-out any obligation of payment.The empowerment drive is part ofMugabe’s re-election campaign and alsoNEWSe-MAIL: energiamoz@gmail.com / status.energiamoz@status.co.mzWebsite: www.energiamocambique.co.mz Newsletter nr. 26 - JUNE 20, 20133The Australian mining groupGold One International will startindustrial exploitation of gold thissemester, in the Lupulichi regionof Niassa province, near the borderwith Tanzania, said the district ad-ministrator.The administrator Jorge Moura said thebeginning of the mining industry will con-tribute to reducing the proliferation of ille-gal miners, from the Great Lakes region.The administrator said that with the on-set of the industrial exploitation of gold inLupulichi should produce benefits such asthe reduction of water contamination ofthe rivers that flow into Lake Nyasa drivenby mercury used for washing ore.Gold One International Group is listedon the stock exchanges of Australia andJohannesburg, and most of its share capi-tal is controlled by a consortium integrat-ing Baiyin Non-Ferrous Group Co. Ltd,Development Fund China-Africa and LongMarch Capital Ltd.Em comunicado divulgadoquarta-feira, a Baobab Re-sources informou ainda que oacordo de parceria, estabele-PUB.MINING & INDIGENISATION:GOLD MINING PROJECT:ties in with ZANU-PF’s plan to portray it-self as a black liberation movement recov-ering assets seized by white colonialists.“The motivation for this position arisesout of the desire to ensure that the peopleof Zimbabwe benefit fully, and withoutwhatsoever cost, from enterprises thatexploit their God-given natural resources,”part of the notice said.When his party seized white-ownedfarm lands more than a decade ago, in-vestor confidence was undermined, send-ing the economy on a downward spiral.
  4. 4. Underground coal gasification(UCG) is now being recognisedglobally as a viable and economicmethod of accessing deep, other-wise unrecoverable, coal reserves,both on- and offshore, says Inter-national Energy Agency Clean CoalCentre senior analyst John Kes-sels.UCG is a process of converting coal intogas while it is still underground, and hasbeen under investigation by Eskom at Ma-juba for the last six years.The Board of Directors of Vale (VALE3;VALE5) approved the payment of the firstinstalment of the minimum dividend to theshareholders in 2013, amounting to $ 2.25billion.The proposal submitted by the executiveboard of Vale, made public on 28 Januarythis year, showed the minimum value of $4 billion, equivalent to US$ 0.776190372per outstanding share, to be distributed intwo instalments on April 30 and October31, 2013.The proposal was based on the remu-neration policy to shareholders of Vale.During a visit by the President of Mo-zambique, an official of Montepuez RubyMining said the company already investedUS$9.7 million and the undertaking of awashing capacity of 50 tons / hour of ma-terial from the mine at the present stagetrial is limited to 15 tonnes / day.The official also said that the company’smanagement, in which Gemfields controlsa 75% stake, is rushing to increase in-stalled capacity to 100 tons / hour.In 2012, one of the partners in the ven-ture Mozambicans said that the choiceof Gemfields for the establishment of thepartnership was based on the fact that theUnderground CoalUnderground CoalGasificationGasificationrecognised as viablerecognised as viableand economic methodand economic methodMozambique: Montepuez Ruby MiningMozambique: Montepuez Ruby Miningincreases investment in rubiesincreases investment in rubiesextraction projectextraction projectVale will pay 2.25Vale will pay 2.25billion in the 1st instal-billion in the 1st instal-ment of the dividendment of the dividendto shareholdersto shareholdersFINANCES & MARKETS:MINING INDUSTRY:4 newse-MAIL: energiamoz@gmail.com / status.energiamoz@status.co.mzWebsite: www.energiamocambique.co.mz Newsletter nr. 26 - JUNE 20, 2013The Montepuez Ruby Mining Ltd, a partnership between British com-panies and Mozambican Mwirit Gemfields, will invest 27 million dollarsin Namanhumbiri district Montepuez, Cabo Delgado Province in northernMozambique, until to the end of the year.British multinational have the desired pro-file, as well as being listed on the LondonStock Exchange.“One of the great advantages of thiscompany is that the Mozambican partnercomes with zero risk, ie, everything thatis related to financial engineering and ma-chinery will be the responsibility of Gem-fields,” said Raimi Raimundo.The second hardest stone after dia-mond, the ruby is basically used in themanufacture of adornments. Montepuezis expected to hold the world’s largest de-posit of rubies, which production will beexported to Thailand and IndiaF r a s e d a q u i n z e n a“Not to correct our faults is the sameas committing new mistakes”Confucius
  5. 5. MOZAMBIQUE:MOZAMBIQUE:Snag in backboneSnag in backboneschemeschemeThe Revuboè coking-coal project inMozambique’s Tete Province has re-ceived a mining concession from theGovernment, granting developmentof a mine expected to start producingin 2016 .ONGC, the state-run company ofIndia, may move forward on an acqui-sition in Mozambique sans Oil IndiaLtd. (OIL). The company told Hindu-stan Times that it may go forward onits own to buy two 10% stakes in theArea 1 block of the Rovuma basin.The two 10% stakes for sale belongto Anadarko Petroleum and Video-con.It was reported previously thatONGC and OIL were joining togetherto acquire the stakes that could costbetween $5 billion and $6 billion. Thecompany said the reports were false.ONGC May Go it AloneONGC May Go it Aloneon Mozambique Bideon Mozambique BideMOZAMBIQUE:MOZAMBIQUE:Revuboe Mines receivesRevuboe Mines receivesmining permitmining permitThe update, also madeby Australian Coffey Mining,mining consultants, allowedto increase to 727 million tonsestimates of iron ore found,with 217 million tonnes tobe placed in the category of“high confidence” and theremaining 610 million tons tohave been inferred.Furthermore, the updaterevealed that the total re-serves estimated 553 milliontons are concentrated in an area with an area of only 2.5 square kilometers.The pre-feasibility study conducted by the Economic Baobab Resources has deter-mined that there is potential to block the production of 1 million tons of pig iron per yearand attributed the net amount of 1300 million dollars to the project.The Australian company started the final study of economic viability last February.This project has 85% stake from Baobab Resources and the remaining 15% from theInternational Finance Corporation, World Bank Group.The BP Group plans to investabout $ 86 million in Mozam-bique, from where it importsoil crude. The amount will bespent on the modernizationworks of fuel terminals and de-posits in Mozambique, said inJohannesburg, Iain Conn, se-nior official of the multinational.Also according to Conn, re-sponsible for the departmentof refining and marketing, thegroup plans to invest half of thatamount in the modernization ofthe refinery it shares with theRoyal Dutch Shell in the portcity of Durban.BRIEFSTalks on the financial and techni-cal package for the new north-southtransmission line have been thrownoff course by a proposal from StateGrid Corporation of China.Times that it may go forwardwn to buy two 10% stakes in tMozambique: Baobab Resources blockMozambique: Baobab Resources blockwith potential for large scale operationwith potential for large scale operationBP plans to invest USD 86 millionBP plans to invest USD 86 millionin the countryin the countrynewse-MAIL: energiamoz@gmail.com / status.energiamoz@status.co.mzWebsite: www.energiamocambique.co.mz Newsletter nr. 26 - JUNE 20, 20135IRON ORE PROJECT:The Australian company Baobab Resources reported that the latest up-date of iron ore resources in the region Tenge-Ruoni, in Tete province, inMozambique, anticipates a large-scale for the production of pig iron.
  6. 6. country is ranked by the UN as the world’sfourth poorest, with most of the 23.4 mil-lion population living on one dollar or lessa day.It is expected that within five years, thenew industry will account for 13 percent ofthe economy.According to the spokesman for theCouncil of Ministers and deputy ministerof justice, Alberto Nkutumala, “from therevenues that result from oil operations inMozambique, a part shall go to commu-nities that are located in areas where theoperations take place.” It is not yet clearwhat the allocation to local communitieswould be.Mozambique: Companies mustreport of any oil discoverywithin 24 hoursA number of foreign petroleum compa-nies, including the US-based Anadarkoand Italy’s ENI have made several discov-eries of oil and gas reserves, positioningthe country as a new natural resourcesfrontier.Some 150 trillion cubic feet of naturalgas has already been discovered. De-spite it’s confirmed energy reserves, the6 newse-MAIL: energiamoz@gmail.com / status.energiamoz@status.co.mzWebsite: www.energiamocambique.co.mz Newsletter nr. 26 - JUNE 20, 2013Angola is the thirdlargest producer of dia-monds in the continentThe Mozambique recently approved petroleum law, states thatcompanies involved in oil and gas operations are required to in-form the government of any new discoveries within 24 hours, andcommunities will get a slice of the country’s oil revenues. However,the Center for Public Integrity, a Mozambican think tank, accusedthe government of lack of transparency for having revised the leg-islation without public consultation, has it should be.Angola is the third largest pro-ducer of diamonds in Africa inquantity and value, said the execu-tive secretary of the Association ofAfrican Diamond Producing Coun-tries (APAPD), Edgar Diogo de Car-valho.With an output of 8 million carats, An-gola is only surpassed by Botswana, thelargest producer with about 38 millioncarats, and the Democratic Republic ofCongo, with 30 million carats.However, in value terms, while main-taining third place, is outweighed by Bo-tswana and South Africa.In comparative terms, according to Ed-gar de Carvalho, Angola gets 1000 mil-lion dollars with 8 million carats, whilethe Democratic Republic of Congo, witha production of 30 million carats, makingapproximately 960 million dollars, 40 mil-lion less than Angola”.The executive secretary of the Associa-tion of African Diamond Producing Coun-tries stressed that business in Angola in-cludes the sale of diamonds in jewellery, aproduct that has a higher added value.OIL LEGISLATION UNDER APPROVAL:COMPANIES & PRODUCTION:AAmdqtAtvglacCtatsglithaali
  7. 7. Triton Minerals Limited has advisedthat as a result of the initial explorationprogram, the Company has (in additionto surface mineralisation identified atthe Balama project) located graphiticmineralisation outcropping in a numberof locations over a distance of approxi-mately 4kms in the northern section ofLicense 5380 in the Ancuabe project.The key objective of the Compa-ny’s initial exploration program was toachieve proof of concept by identifying the presence of potentially-economic valuableconcentrations of graphite on both the Balama and Ancuabe prospects.Highlights: Positive exploration results from Ancuabe Project – Mozambique, Gra-phitic surface mineralisation identified in numerous locations, Confirm graphite minerali-sation north west from historic Ancuabe mine.e-MAIL: energiamoz@gmail.com / status.energiamoz@status.co.mzWebsite: www.energiamocambique.co.mz Newsletter nr. 26 - JUNE 20, 2013news 7Osaka Gas Group interested in Mozambique natural gasOsaka Gas Group interested in Mozambique natural gasOIL & GAS:Osaka Gas Co., the second largest city gas supplier from Japan, identified Mozambique as one of the regions where it wants toinvest, said a senior company quoted by Reuters news agency.Takayuki Tasaka, associate director and chief of the division of business strategy, said the company is examining not only Mo-zambique but other regions of the planet, and is also cooperating with Tokyo Gas for the purchase of liquefied natural gas in severalprojects underway in Mozambique.The findings of liquefied natural gas until the date announced in Mozambique amounted to 150 trillion cubic feet, which is sufficientto supply Japan for 35 years. During 2012, Japan imported 87.3 million tonnes.The Japanese group Mitsui & Co, which controls a 20% stake in Block 1 area operated by U.S. group Anadarko Petroleum, hasannounced plans to sell at least 5 million tons of liquefied natural gas from Mozambique to Japanese customers.Triton Minerals Finds Surface GraphiteTriton Minerals Finds Surface Graphiteat Ancuabeat AncuabeProductionAMEX - Associação Moçambicana para o Desenvolvimentodo Sector de Energia e Indústria ExtractivaDISP. REG. N° 5 GABINFO/DEC/2008Address: Av. 25 de Setembro, n° 1123, 1º andarPrédio CardosoTelephone.: +258 21 32 71 17Fax: +258 21 32 71 17Director: Inguila SeveneEditor: C. GinabayCollaborator: Alexandre DunduroDesign: Luís Filipe TembeEmail: energiamoz@gmail.comWebsite: www.status.co.mz e www.energiamocambique.co.mzGRAPHITE MINING:TECHNICAL SHEET
  8. 8. With demand formetals predictedto increase ten-fold, mining com-panies must radi-cally rethink theirrecycling practicesto mitigate the po-tential impact onthe environment,according to tworecent reports bythe United NationsEnvironment Pro-gramme (UNEP).The two reports,“EnvironmentalRisks and Chal-lenges of Anthro-pogenic MetalsFlows and Cycles’and “Metal Recycling - Opportunities, Limits, Infrastructure” - were launched recentlyduring UNEP’s 12th International Resource Panel Meeting in Berlin and issue a seriesof recommendations for mining companies to use their expertise to improve recyclingpractices.These recommendations include adopting certified systems based on Best AvailableTechnologies (BATs) to increase energy and entropy efficiency; setting recycling priori-ties for different metals; setting realistic policy targets for recycling metals and optimis-ing systems to boost recycling rates and decrease environmental impact.“A far more sophisticated approach is urgently needed to address the challenges ofrecycling complex products, which contain a broad variety of interlinked metals andmaterials,” said UNEP executive director Achim Steiner in the report.“While common commodity metals like steel, magnesium and copper can be recov-ered relatively easily, as these are often used in relatively simple applications, the smallamounts of metals in, for example, electrical and electronic waste can be harder torecover because they are often just one among up to 50 elements.”“This is why the focus needs to be on optimising the recycling of entire products attheir end-of-life instead of focusing on the individual materials contained in them,” hestressed.8 newse-MAIL: energiamoz@gmail.com / status.energiamoz@status.co.mzWebsite: www.energiamocambique.co.mz Newsletter nr. 26 - JUNE 20, 2013GLOBAL: UNEP calls on miners to radicallyGLOBAL: UNEP calls on miners to radicallyrethink recycling practicesrethink recycling practicesENVIRONMENT & LEGISLATION:Mozambique: MineralMozambique: Mineralresources generate 40%resources generate 40%growth of Tete provincegrowth of Tete provinceDuring 2012, the Tete province re-corded output growth estimated at40%, mainly driven by the develop-ment of mining activities, accord-ing to the director of retail banking,small and medium companies fromStandard Bank, Chuma Nwokocha.During a meeting organized by the bankin the city of Tete to promote funding solu-tions and partnerships for targeted smalland medium enterprises, Chuma Nwoko-cha predicted that economic growth ob-served during 2012, will be continued thisyear.Named Standard Bank Express, themeeting focused on the implications ofeconomic changes in the global contextand macroeconomic policies on the busi-ness particularly in the region of Mozam-bique.ECONOMY & FINANCE
  9. 9. exploitation often triggered the slowdownof the development process in several Af-rican countries.There are several components that arearound this evaluation. One of the mostimportant is the nature of the investments.The investments for exploration of naturalresources are governed by own complex-ity. They have their own dynamics andrhythm. Accordingly, it is the role of theState institutions to apply the appropriatemonitoring.But this relationship between the discov-ery and development of natural resourcesis grounded in a rather complex basis, inthe sense that not always generates re-sources discovery generates the desireddevelopment. there are priori conditionsto be observed such as: Quality of Infra-structure, socioeconomic and politicalstability, specificity of each resource, geo-strategic location of the country, etc.. Theblessing of natural resources is not neces-sarily limited to its discovery; it has to doalso with the environment that will engageits exploitation.The Exploitation of Natural ResourcesThe Exploitation of Natural Resourcesin Mozambique: What Paths & What Choices?in Mozambique: What Paths & What Choices?ANALYSEanalysee-MAIL: energiamoz@gmail.com / status.energiamoz@status.co.mzWebsite: www.energiamocambique.co.mz Newsletter nr. 26 - JUNE 20, 20139The exploitation of natural resources, particularly minerals and hydrocarbons, has shown,over the last decades, that it can be the critical path to be used by African countries in theirdevelopment process. This assumption is factual in Mozambique specifically, taking intoaccount the wave of resource discoveries the country has been experiencing. Nevertheless,for a country that has always struggled with deep problems of poverty, this new “page”creates undoubtedly a renewed hope of a prosperous future.From this finding, it appears that the dis-covery of natural resources does not endin itself the idea of full and harmoniousdevelopment. Several approaches to therole of natural resource development areunanimous in warning about the dangerof establishing a superficial relationshipbetween these two components. Indeed,the development from the exploitation ofnatural resources should be the result of along journey and matured on issues suchas redistribution of revenues, transpar-ency among other components. Just lookat how the dynamics of natural resource Cont. pag. 2
  10. 10. 10 ANALYSEe-MAIL: energiamoz@gmail.com / status.energiamoz@status.co.mzWebsite: www.energiamocambique.co.mz Newsletter nr. 26 - JUNE 20, 2013Talking about the institutional capac-ity, in the particular case of Mozambique,the glaring example of official govern-ment institutions assume that the countrywas found in “back foot” regarding thediscovery of natural resources, almostautomatically opens a precedent hassle,at least when it believes it is possible toachieve the full development from the ex-ploitation of natural resources. A questionthat arises is: If the government was notprepared, who ought to be prepared? Thispoint is crucial and can illustrate the levelof commitment from the government on is-sues such as expectations management,horizontal communication with communi-ties and monitoring of companies activi-ties involved in the exploitation of nationalresources.Another component not less important isthe question of the companies involved inthis activity. Natural resources will not bea blessing in no time if the companies in-volved in the exploration do not show anyinterest in the sustainable developmentapproach. This point is perhaps associ-ated with the previous point. If there it becapacityfromgovernmentinstitutions,thenthe process of companies selection to beinvolved in the exploitation of resourceswill have to be selective and based on therecord of their actions in other countries,ignoring this aspect opens up an objectiveslit for the resource curse.Essentially, the issue of blessing or cursehas to do with the choices of the country.The responsibility for the way forwardlies with the country itself. Mozambiquehas the privilege of having at its disposal,concrete examples on this subject. Onesthat led to the collapse and disagreementsand others that led to a successful recog-nition. Natural resources should not beconsidered itself as the “magic sweep”for development but it is the policy effortaround its exploitation that may turn theseresources into a blescvsing.(Newsroom, Energy Mozambique)Mozambique’s income from mineral pro-duction last year was nearly 14.3-billionmeticais (about $470-million), while, in2011, it was just under 5.1-billion meticais(some $170-million).In gross domestic product (GDP) terms,the minerals sector accounted for 1.4% ofthe country’s GDP in 2011, rising to 3.4%in 2012 and predicted by the IMF to reach4.3% this year. The ramping up of coalexports this year, the execution of majorinfrastructure projects and the eliminationof transport bottlenecks, particularly an in-crease in the capacity of the railways link-ing the inland coal-producing Tete regionto the coast, should increase the country’seconomic growth rate to 8.4% for thisyear.International ratings agency Fitch Rat-ings, has noted Mozambique as one ofthe primary commodity-producing Africancountries that has gained in importancein recent years (others being Angola,Uganda and Zambia). The country is oneof 20 African States whose sovereign debtis now rated by the international agencies(in 1994, South Africa was the only Afri-can country to have its debt rated). Beingrated encourages foreign investment.Mozambique is now the second-big-gest recipient of foreign direct investmentThe Benefits and ConcernsThe Benefits and Concernsof Mozambique Mining Expansionof Mozambique Mining ExpansionIN ANALYSEMineral production in Mozambique should generate revenues of near-ly 20.8-billion meticais (some $680-million) during this year, a technicalteam from the International Monetary Fund (IMF) has forecast.(FDI) in newbusinesses inSouthern Af-rica, after SouthAfrica, reportedFitch. Recent-ly, Fitch Rat-ings upgradedits outlook onMozambiquesovereign debtfrom ‘stable’ to‘positive’ as aresult of pru-dent fiscal andmonetary poli-cies followedover the past ten years. The agency ex-pects the country to grow even more rap-idly in future, driven by increased explo-ration of natural resources. Fitch’s ratingof long-term Mozambique debt is B+ witha stable outlook, while short-term debt israted at B.(To be continued on thenext edition…)
  11. 11. which companies are involved, to en-sure greater transparency.OTHER SECTORSThe European Parliament intro-duced a review clause to which theCommission is obliged to examinethe possibility to include other sectorswithin the scope of the directive.This policy is comparable to theDodd-Frank Act, from the UnitedStates, approved in July 2010, whichrequires companies registered in themining industry, Securities and Ex-change Commission to publicly dis-close payments made to governmentsby country and project. The EU Mem-ber States have two years to swap thedirective into national law.CthwDSremccbbdNEWS 11e-MAIL: energiamoz@gmail.com / status.energiamoz@status.co.mzWebsite: www.energiamocambique.co.mz Newsletter nr. 26 - JUNE 20, 2013Venter, who joined Ncondezi as COOin June 2012, had more than 30 yearsof experience in the power industry andhas worked for power generation compa-nies and independent power producers inSouth Africa, Russia, China and Mongo-lia.In addition to the appointment of Ven-ter, and following the company’s changein focus to power generation, the boardhad approved the restructuring of its exist-ing share incentive scheme for directors,senior management and contracted per-sonnel to ensure it was appropriate for adeveloping energy producer.Currently, EU law does not requireextractive industry (oil, gas and miner-als) companies or the logging industryto disclose payments made to govern-ments in the countries in which theyoperate, although such payments mayrepresent a significant portion of rev-enues of a country, especially thosethat are rich in natural resources (par-ticularly in Africa).The European Parliament has re-quested, since 2007, the full and widedissemination of the information.In 2011, the Commission presenteda proposal to revise the TransparencyDirective which requires companies ofmining and timber to annually disclosepayments made to governments ineach country.The new rules, as agreed betweenthe negotiators of the European Par-liament as well as by the Council re-quire that all payments equal to orexceeding 100 thousand euros arepublished. Payments will also be re-leased for each extraction project inMozambique:Mozambique:Ncondezi appoints Paul Venter as CEONcondezi appoints Paul Venter as CEOOIL AND MINING INTERPRISES TO UNVEIL ALLOIL AND MINING INTERPRISES TO UNVEIL ALLPAYMENTS MADE TO GOVERNMENTS OVERSEASPAYMENTS MADE TO GOVERNMENTS OVERSEASCOMPANIES AND APOINTMENTSLEUROPEAN UNION PRESS RELEASE:Following formal board review, Aim-listed Ncondezi Coal has appointedits current COO Paul Venter as CEO and executive director with immedi-ate effect.The major timber, oil, gas and mining companies will be requiredto disclose payments made to governments, by country and byproject, according to new rules adopted today by the EuropeanParliament by 655 votes in favor, 18 against and 11 abstentions.The goal is to increase transparency and prevent corruption in thecountries in which they operate.
  12. 12. Middle East: Average compensation for Middle East-based oiland gas workers rose nearly 4 percent from $90,905 in 2011 to$94,309 in 2012.South America. For the 2010-2012 time period, mean compen-sation levels grew nearly 2 percent from $102,570 in 2010 to$104,459 in 2012.North America: From 2010to 2012, the mean pay de-clined 2 percent, as the de-cline from 2011 to 2012 offsetthe gain made from 2010 to2011, when the mean com-pensation level rose from$96,558 in 2010 to $99,175 in2011.Europe: For the 2010-2012time period, mean compen-sation levels for oil and gasworkers working in Europerose nearly 9 percent from$91,685 in 2010 to $99,683 in2012.Australia/Oceania: Oil andgas workers in Australia/Oceania reported a 7 per-cent increase in mean com-pensation levels from 2010to 2012. Mean pay rose from$114,902 in 2010 to $123,453in 2011, but declined slightly to$123,161 in 2012.The highest paying salariesare positions associated withsubsea, subsurface and drill-ing. These roles are in demandas oil exploration companies gointo deeper and deeper waters to extract oil and gas resources.“Workers with previous experience working on liquefied naturalgas projects also can command higher salaries, as these skillsare considered niche and hard to find” noted Thomas Ward, hu-man resources specialist.Salary increases for these positions have been seen over thelast five years has operator’s battle for the talent required to pushtheir project ahead.“Salaries will continue to rise across the sector unless employ-ers begin to employ alternative methods to paying the highestpossible salary to someone currently engaged on another proj-ect,” Ward commented.These alternative methods for retention strategies include per-formance bonuses, flexible working hours, death, disability andmedical insurance and salary packaging, allowing individuals topurchase cars and other benefits.12 NEWSe-MAIL: energiamoz@gmail.com / status.energiamoz@status.co.mzWebsite: www.energiamocambique.co.mz Newsletter nr. 26 - JUNE 20, 2013Mean compensation levels from 2010 to 2012 remained rela-tively flat for Africa-based oil and gas workers, while the averagecompensation level grew approximately 5 percent from 2011 to2012. Mean pay declined from $105,453 in 2010 to $99,894 to2011, but rebounded to $105,107 in 2012.The increase in average pay in 2012 was concentrated mainlyamong Africa-based workers with master’s degrees; salariesfor these workers grew over 8 percent from $107,393 in 2011to $116,742 in 2012. In terms of experience, the gains in aver-age 2012 salaries for Africa-based workers were concentratedamong workers with six to 10 years of experience or more than20 years of experience. Workers with six to 10 years of workexperience saw their average salary level rise from $83,331 in2011 to $88,890 in 2012. Workers with over 20 years of experi-ence saw their average salary level grow from $131,264 in 2011to $146,946 in 2012.Oil & Gas Industry Wages: SpecializedOil & Gas Industry Wages: SpecializedPositions Still Command Top PayPositions Still Command Top PayWhile we celebrate the 1st of May, internationalworkers day, we bring to you the most well paid oiland gas specialty positions worldwide, visiting regionby region, showing the places and numbers.
  13. 13. Nigerian lawmakers said that next week they will investigate deals inwhich the state-oil firm awarded two local firms, with no previous oper-ating experience, the rights to make potentially billions of dollars fromoilfields without competitive bidding. Local activists raised the issue withthe parliament last week, while Nigerian National Petroleum Corporation(NNPC) has denied any wrongdoing.“We have invited them (the activists) to come and table the matter and sub-stantiate their claims ... We have also invited NNPC to get their side,” Em-manuel Paulker, the head of the Senate committee on upstream oil and gas,told Reuters.The lower house passed a motion late on Thursday to investigate the deals,which activists say cast doubt on pledges by President Goodluck Jonathan’sgovernment to improve transpar-ency and end an era of backroomdeals that have characterised Af-rica’s biggest energy industry fordecades. Activists say multi-lay-ered deals on oil blocks throughsecretive local companies, oftenlacking technical expertise, areat best inefficient and at worst anavenue for corruption.THE GEMOLOGICAL MINERALSNIGERIANLAWMAKERS TO PROBE STATE OIL FIRM DEALSWITHOUT TENDERSMany minerals have crystallized characteristics that make them beauti-ful to our eyes. Besides its rarity in nature, brightness and color are themain points that lead them to be coveted.For millenniums, well crystallizedminerals and very bright with vividcolors have been used as gemstonesin jewelry. They can be used in crudeform as they are found in nature, as isthe case with some such as topaz, am-ethyst and tourmaline or polished asdiamonds, emeralds, among others.Stoning is nothing more than min-eral molding with special equipmentto give the desired shape and enhancethe characteristics of minerals, such asbrightness, color and transparency.The most sought after gems are dia-monds, rubies, sapphires and emer-alds. However, there are hundreds ofgemological materials.There are those that have differentcolors and are individually named so.Example, sapphire and ruby are variet-ies of corundum. Already the emeraldand aquamarine are varieties of beryl.CURIOSITIESDear reader!Now you can share and read all thenews of Energy MozambiqueMagazine in real time on Facebook.In addition, the Energy Mozam-bique is also on Twitter. If youprefer, you can also choose tosend yourNewsletterrequest throughwww.energiamo-cambique.co.mzYou will be able to receive alleditions of the Energy andExtractive Industry Newslet-ter directly in your inbox.Follow theEnergy MozambiquePUB.13e-MAIL: energiamoz@gmail.com / status.energiamoz@status.co.mzWebsite: www.energiamocambique.co.mz Newsletter nr. 26 - JUNE 20, 2013CORRUPTION &EXTRACTIVE INDUSTRY
  14. 14. The bi-weekly E-Magazine Energy & Extractive IndustryIs one of the channels of the Energy Mozambique Media Projectavailable on:www.energiamocambique.co.mzAnd there is also the print format which is the quarterly magazine Energy Mozambique,Including a TV program entitled Mozambique Energy broadcastedon the Television of Mozambique (TVM) every Wednesdays.The biweekly E-Magazine Energy & Extractive Industry brings to its readers the main eventsthat may result in great changes in the Energy & Mining Industryat the national, regional and international level.The Energy Mozambique Media Project is the first and only media project with expertise En-ergy & Mining News which makes of it an exclusiveand privileged channel for companies operating in theto advertise their products, services and brands on it.(BILINGUAL): 20.000MT/MonthlyFOR e-MAGAZINE AND WEBSITE2 EditionsBI-WEEKLYNEWSLETTERWe are your communications consulting companyin the sector of Energy & Extractive IndustryWE COMMUNICATE WITH ENERGYFollow us on our official website, twitter, facebook and Linkedin pageE-mail: energiamoz@gmail.comPrédio Cardoso - Av. 25 de Setembro, N. 1123,1st and 2nd floor, Door N.tel.: +258 21 32 71 16 / 21 32 71 17 • Fax: +258 21 30 09 48Cell: +258 84 30 66 780 • PO BOX: 302E-mail: inguila.sevene@status.co.mz • www.status.co.mzMaputo - Mozambique

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