Clean Mining Gains Foothold in Mozambique
The mining sector in Mozambique is in the midst of transformation, as it realigns with the clean energy transition by harnessing precious minerals required for the production of electric vehicles and lithium-ion batteries. In addition to sizable gas reserves found offshore, Mozambique is home to commercially significant deposits of coal, gold, graphite, ilmenite, iron ore, titanium, copper, tantalum and bauxite, to name a few. While COVID-19 may have disrupted mining operations in terms of site closures and reduced export earnings, demand for precious minerals and metals has not faced the same fate as oil and gas. In fact, mining commodities have risen in the past nine months, due to demand for technology products (that rely on copper, nickel, graphite, manganese and lithium) and global green initiatives. To meet the surge in demand for clean energy technologies, the World Bank posits that mineral production could increase by almost 500 percent by 2050 and that three billion tons of mineral and metals will be required to support wind, solar and geothermal power expansion, along with energy storage. The mining sector in Mozambique has seen several recent large-scale investments – predominantly from Australian mining firms – that speak to the sizable returns that the industry has to offer.