Mozambique Mining: Mining industry was country’s fastest-growing sector in 2018 1st half

Mining and quarrying were the fastest growing sector in the Mozambican economy during the first half of the year, up 15.7 percent year-on-year according to the most recent official data consulted by Lusa.

The growth was mainly due to the increase in coal production, the balance sheet of the Government’s Economic and Social Plan made available by the Ministry of Economy and Finance reveals.

Precious stones and other minerals also registered remarkable growth of between 18 and 70 percent, compared to the same period of 2017.

On the downside, the document reveals a decrease in the construction, electricity and water sectors, caused by the hydrological crisis in the Subsaharan region.

As a result, gross domestic product grew by 3.3 percent against the same period of 2017. In June, the National Institute of Statistics (INE) had announced a 3.2 percent increase, while the government’s Economic and Social Plan sets a 5.3 percent growth target for this year.

In extractive industry, the document explains that coal coke registered a 45 percent year-on-year increase and thermal coal increased by 121 percent, “due to the resumption of [activity at] the Benga Mine and demand in Asia”.

Regarding metallic minerals, “all had satisfactory production compared to the same period of 2017”, especially gold, with year-on-year growth of 260 percent.

The jump is justified by “the entry into the production phase of new companies in the province of Manica, with the improvement in the capture of information of the sector, and with the good performance by the company Kenmare in the province of Nampula”.

Non-metallic minerals also increased, “influenced by the start of graphite production in Balama district”. source: Lusa