Maputo — Standard Bank-Mozambique and the Mozambican Mining Company (EMEM) on Thursday signed an agreement in Maputo on promoting the development of mining through facilitating funding for projects in the sector.

EMEM is a company set up recently by the Mozambican government to ensure that Mozambique obtains the maximum possible benefit from the exploitation of the country’s mineral resources. This is the company which manages the Mozambican state’s five per cent holding in Vale-Mozambique, the local subsidiary of the Brazilian mining giant Vale, which is operating a gigantic open cast coal mine in Tete province.

Under Thursday’s agreement, Standard Bank will provide EMEM with consultancy and financial intermediation services, and advise on the development of the infrastructures necessary for maximising the potential of mining projects.

At the signing ceremony, the EMEM Managing Director, Antonio Manhica, said the agreement seeks to establish a coordinated and efficient state mining company which will work for the benefit of Mozambique and of the mining sector.

“EMEM believes that through strategic partnerships with companies such as Standard Bank it will succeed in building a complete value chain in the mining sector to obtain maximum benefits for all parties involved, and will be able to comply with its mission to create a world class mining sector in Mozambique”, he said.

For his part, the Chief Executive Office of Standard Bank, Antonio Coutinho, said that the involvement of the bank in this partnership derives from its long experience in questions concerning raw materials.

“Standard Bank has obtained this mandate due to its specialist knowledge, particularly in commodities”, he said.

Coutinho added “it is particularly important for the Mozambican people to benefit from the mineral wealth of the country. The sustainable development of this wealth develops infrastructures, generates profits for mining companies, and contributes to the Mozambican GDP, thus improving the living conditions of Mozambican communities”.