Maputo — Mozambican President Filipe Nyusi on Wednesday reaffirmed his commitment to ensure that the distribution of wealth from natural resources is structured, fair, inclusive and sustainable, to benefit every citizen in the country.
Addressing the opening session in Maputo of the 7th Conference and Exhibition on Mining, Oil, Gas and Energy, Nyusi said Mozambique wants to avoid the experiences of other countries, which failed to use the wealth from their resources to develop their own economies,
"I give you my word that the government will do everything for the reestablishment of peace in Mozambique and to ensure the continuity of investments that will reduce the social and economic vulnerability of the Mozambican people," stressed the President.
Portraying the country's extractive industry, Nyusi said it is a driving force for the creation of infrastructures with transformational power and enables the necessary conditions for catapulting agricultural and industrial potential.
The government has created several legal instruments which pave the way for huge investments and, in spite of the lengthy period for their maturation some have reached the operational phase, said Nyusi.
In the Rovuma basin, off the coast of the northern province of Cabo Delgado, Nyusi said the floating Liquefied Natural Gas (LNG) platform of the Coral South Project, operated by the Italian energy company, ENI, is 90 per cent advanced and will come into production by 2022, producing 3.4 million tonnes of LNG a year. He was convinced that the floating platform, under construction in a South Korean shipyard, will be in Mozambican waters by December.
Despite the terrorist raids in Cabo Delgado, Nyusi was optimistic that the onshore LNG projects will also go ahead.
However, Nyusi said the country faces challenges such as the consolidation of the outcomes after the negotiations with the mining companies to establish the guidelines for gas sale and purchase contracts.
He believed that artisanal mining could have a great impact on income generation in remote areas. However, this small scale mining is plagued with tax evasion, environmental pollution, and child labour as well as the temptation for these miners to sink illegal mine shafts.
Nyusi stressed the need for the participants of the two day meeting to improve inspection levels to combat tax evasion, and avoid the illegal transfer of mining licenses.