Mozambique has one of the world’s largest recently discovered natural gas reserves and is starting to receive the first investments at a time when the difficult economic situation in the raw materials market is leading to postponement of some projects, in addition to some political instability in the country.
China dream is to turn Mozambique into a centre for natural gas exploration, according to Portuguese researcher Gustavo Placido dos Santos, who notes the East African country has a lot to gain from Chinese involvement in natural gas exploitation as reported by Macauhub.
In an analysis for the Portuguese Institute of International Relations, Gustavo Placido dos Santos argues that Mozambique is a central commitment for China, which makes the country’s stability a concern.
“On the one hand natural gas exploration in Mozambique will have much to gain from China’s involvement, and on the other, it is in Beijing’s interest to secure new supplier markets, amongst which Mozambique is considered one of the most desirable,” said the researcher.
“The dynamic of Beijing’s strategic shift in relation to Africa, and the need to defend its interests and investments, may be a key factor in ensuring stability,” he said.
China ranks as one of the major future markets for Mozambican natural gas, with its state oil companies taking stakes in companies responsible for natural gas operations.
Sinopec has 20 percent of a concession in the Rovuma basin and the China National Offshore Oil Corporation (CNOOC) has been identified as interested in buying part of the same concession, operated by Italy’s ENI.
ENI originally had a total 70 percent stake, but sold 20 percent to Sinopec, in order to drive investment resources and increase China’s interest in natural gas production.
Mozambique’s government has estimated that to date over 75 trillion cubic feet of natural gas have been found in Area 4 and more than 95 trillion cubic feet of natural gas in Area 1.
Asia is now considered the only market capable of monetizing the investments already made and due to be made in future production of liquefied natural gas in Mozambique, in direct competition with Qatar and Russia.
Researcher Loro Horta said in a recent article that China is rapidly asserting itself “as the most important diplomatic and economic player in Mozambique,” investing millions on a “no questions asked” basis. (macauhub/CN/MZ)
Pathfinder Minerals PLC Mozambique Court has rejected former Mozambique State Security Minister General Veloso appeal and his associates,have been ordered they pay Pathfinder Minerals PLC legal costs from the ongoing court case.
On December 15, Pathfinder said the Mozambique Supreme Court had ruled in its favour in relation to an ongoing dispute on whether the Court would recognise and enforce a ruling in England that it validly acquired its Mozambique licence-holding subsidiary.
The dispute concerned the status of the shareholding of Pathfinder’s wholly owned subsidiary, IM Minerals Ltd, in Companhia Mineira de Naburi SARL.
Pathfinder was pursuing legal action in both England and Mozambique to try to get back assets it says were seized by former Mozambique State Security Minister General Veloso. The assets are the company’s only producing assets.
The English ruling said the subsidiary, IM Minerals, validly acquired its 99.99% stake in Companhia Mineira de Naburi and provided the basis for Pathfinder’s application to have the English judgements recognised in, and enforced by, the Mozambique Supreme Court and/or to seek compensation for the loss of value.
Pathfinder was asking the Mozambique Supreme Court to recognise the English Court, which ruled that General Jacinto Veloso, Diogo Cavaco and General Veloso’s company, JV Consultores Internacaionais Limitada should pay for costs totalling GBP106,000.
The investment of millions of dollars in Pathfinder Minerals Plc and Mozambique, by large foreign shareholders, represents a substantial economic opportunity for Mozambique, which will benefit significantly from the development of these Mining Concessions, with support from the Ministry of Mineral Resources of the Republic of Mozambique and the involvement of some of the advisers in the mineral area of world class.
It is believed General Jacinto Veloso and his partner Diogo Cavaco conflict with the British firm Pathfinder Minerals PLC is now over,, with the epicenter possession of two valuable mining concessions for exploration of heavy minerals owned by Mining Company Naburi,
four firms make up this business : the Mozambican Mining Company Naburi, SARL (CMN) and Pathfinder Mozambique SA, and British IMM Minerals and Pathfinder Minerals PLC.
The Mining Company Naburi is the original owner of two exploration licenses heavy sands in Moebase and Naburi, in Zambezia province.