Newsletter-Ener & Industria Extractiva Moc-edicao Nr 19-Versao Ing

ONE of the fi rst milestones was the beginning of coal ex-ports by the Brazilian multina-tional Vale through the Port of Beira, after the oil giant North American company Anadarko indicated the beginning of dis-coveries of signifi cant natural gas reserves in the Rovuma Basin. In addition to the above events, it adds a third with high symbolic and political value which consisted in the shares reversal of Cahora Bassa dam (HCB) to the Mozambican State control.

These events surprised

Some challenges Some challenges for Mozambiquefor Mozambique

many and few Mozambicans were skilled in the subject. Thereafter, workshops, lec-tures and debates were mul-tiplied in order to uncover the meaning of these events for

the future of the country.

At that very same time the Energy Mozambique Media Project developed and the re-hearsed its fi rst thesis on nat-ural resources with basis on other countries experiences, presenting and transmitting especially the good practices.

We defended in one of the issues that mineral resources are not miracle workers, in re-sponse to the great expecta-tions that were manifested in several sectors of the society and opinion concerning the con-tribution of the discovered re-sources. We insisted that such resources are not and cannot be seen as the panacea - rem-

Some Perceptions Some Perceptions of Mozambican Gas of Mozambican Gas

Market and the race to Market and the race to great discoveries

A year is already gone since the Mozambicans be-gan receiving information that changed the history of the energetic and extractive industry sector, also announcing an economic, political and social change on medium and long term.

Dear Reader! Welcome to the nineteenth edition of

the electronic magazine En-ergy & Extractive Industry Mo-zambique.

At large steps to the end of the year, in this edition we make a retrospective of the great events that marked the energy sector and we take a look at the challenges facing the country.

Since the beginning of the exploration of gas from Pande/Temane at commercial scale by Sasol, the Moma heavy sands, the reversal of the Ca-hora Bassa dam (HCB) fi ve years ago, the departure the fi rst ship coal from Moatize by Vale and the discovery of nat-ural gas in the Rovuma basin until the present day we have noted the emphasis the news of this emerging sector, and as forerunners in the fi eld of ex-pertise we are proud to uphold the tradition in the art of bring-ing to the reader information of public interest.

The search for information on the exploration of natural re-sources existent in the country has revealed itself relentless, and the Energy Mozambique Media Project through its vari-ous media channels has pro-vided the right to information to the citizens so that they may be aware of the socioeconom-ic development of the country and beyond.

Further, in terms of com-pared Law, we mention the various models used by other countries with natural resourc-es and how they spend their revenues (royalties) but at end hangs in the air the question: “what is the model used or to be used for Mozambique?”

Happy Reading!

ENERGY AND MINING:

Cont. pag. 2

MARKETS AND DEVELOPMENT:

co e esgas resBasin. Inevents,

ARKETS AND DEVELOPMENT:

and more...and more...Pag. 3Pag. 3

Nr. 19NNr.rNNr. 1919NEWSLETTER

BI-WEEKLY NOVEBER 22nd, 2012 - ANO II

Bilingue (ENGLISH version)

ASSOCIA

ÇÃO M

OÇAM

BIC

ANA P

ARA O

DESENVOLV

IMENTO

DO S

ECTOR D

A E

NERGIA

& INDÚSTRIA

EXTRACTIV

A

2 NEWSe-MAIL: [email protected] / [email protected]

Website: www.energiamocambique.co.mz Newsletter nr. 19 - NOVEMBER 22nd, 2012

attributed to a child or to an architect is not the same. In one case, this means that when the child becomes an adult may be-come an architect: who knows? It is not impossible. In another case, It means that this architect currently without a job, will build a house, since someone hires him: This is his power. For one thing, “power” designates virtuosity; on the other hand, power is a determined capacity, which is able to be exercised at any time.”

However, we want to say here that there are several challenges to Mozambique re-garding to the exploration of natural gas in deep waters. Because the exploration, the logistics operations, the installation of pipelines or liquefaction (LNG) depend on establishing long-term contracts and on the customer location and are strongly affected by the international scenario (re-gional and international confl icts, price, supply and natural gas demand). That is why we insist that Mozambique should avoid becoming just a producer and a net exporter of raw materials (natural gas, coal and others) but it should stimulate domes-tic consumption of the same resources through industrialization not to be depen-dent on chocks and international demand of its resources. As an example, the shale gas revolution by the countries, up today, the biggest consumers of oil and gas such as China, U.S., Japan, Russia, Brazil, the European Union haunt the gas prices fu-ture, particularly for countries heavily de-pendent on exports of these raw materi-als as is the case of most OPEC member countries.

Indeed, we all need holistic views in the canons of the wise saying “think global and act local.” The future is drawn, sketched in the present in order to foresee future traps.

or watching news about this sector, pre-cisely in the media, which makes us think and see this scenario as a serious sign or symptom of the resource curse even with all warnings and lessons that the country has received recently from distinguished fi gures regarding this issue.

Among them, we highlight three par-ticularly, the expert Farouk Al-kasim – the

Iraqi that in the 60’s “saved” Norway from the “Dutch disease”, the man who brought lessons (“Vaccine”) that

illustrate how the country can avoid the pitfalls of the Dutch disease. Then we received Jenik Radon, a distinguished professor at Columbia University in the United States, with a vast experience in the mining legislation seized with work and visits in more than 100 countries, and fi nally the country opened its doors to Professor Joseph Stiglitz, a colleague and friend of Radon at the University of Columbia and author of the revolutionary economic thought, laureate Nobel Prize of Economics in 2001, with extensive experi-ence on issues related to resource curse, along with Jenik Radon sought to warn us about the ways through which Mozam-bique can escape the resource curse or simply the paradox of abundance.

The issue of managing expectations is among the most serious and worrying now, because now it is associated to the distri-bution of resource revenues that are not yet being explored as the case of natural gas in the Rovuma Basin. We must recall here the distinction between potency and power, possibility and effective capability and above all, between dream and reality, between the simple wish and being able to do. In this aspect, the lessons left by Gerard Lebrun, contemporary French phi-losopher and politician are quite enlight-ening. Lebrun says the following, quoting Aristotle: “... The power to build a house

e d y

for all the problems of poverty and devel-opment. In accordance with the view taken by the creators of the Human Development Index - The brilliant Pakistan academic Mahbub Ul Haq and the Indian Amartya Sen, one of the most notable economists of the XX century, winner of the Nobel Prize in Economics in 1998 and author of the brilliant thesis of “development as freedom” - emphasize that “the real wealth of nations are the people who live there”. They (the people) habit in the core of de-velopment and thus the focus should be on reinforcing the human capacity so that people may become creative with a long and healthy life (longevity).

So, we proclaim that “wealth is not un-derground or in deep waters.” This means that it is not necessarily the mineral coal that abounds in Tete, nor the natural gas in the Rovuma Basin or even the titanium extracted in Moma, Nampula Province. But wealth consists on the ability to trans-forms resources into goods and services that may extend Mozambican social, eco-nomic, political and cultural welfare to other generations to come. It is also in the ability to transform natural resources into improvement of education quality, health, transports, governance, sports, funda-mental freedoms, environment defense and protection, social and economical in-tegration of the most vulnerable groups, peace, freedom of expression and political pluralism for all, etc.

Approximately one year since the begin-ning of this adventure in the sector of en-ergy & extractive industry, and fi ve years since the reversal of HCB, we found that expectations are still very high and the energy and mining sector represents fea-tured news in almost every media organ and it is the center of the debate on pov-erty reduction, development and wealth redistribution. This is to say that people do not spend a single without listening

Continued

beginning in 2026.For next year’s auction, Mozambique

is hoping to lure in big players who have an interest in, and the capacity for devel-opment. The country’s plans include an LNG refi ning and transport infrastructure that will require around $20 billion in in-vestment.

While Eni and Andarko have made their discovery, Shell, ExxonMobil and Chevron are said to be vying for a piece of Mozambique’s lucrative gas market.

Here are some pitfalls to look out for:Infrastructure is a problem: for now,

there is no way to bring extracted gas onshore, no facilities to liquefy it and no infrastructure for export – requiring es-timated $20 billion in investment to build the necessary infrastructure;

This means the competition landscape is reserved for the major industry players. (There are indeed rumors that Andarko may sell out to Shell)

MOZAMBIQUE is lined up to become the next key oil and gas market, now is the time to enter the game, while being be-ware of the pitfalls. Major discoveries are tantalizingly promising, but questions of infrastructure to make them commercially viable, uncertain regulatory environments and the potential for confl ict pile up as roadblocks. Here we look at the Mozam-bican gas market inside-out.

Gas is shaking Mozambique, with ex-citement on a major discovery big enough to supply Germany, the UK, France and Italy for nearly a decade and a half. The giant sector players are now jockeying ahead of the next round of block auctions. And this is only the beginning; the country has hardly been explored.

In the fi rst quarter of 2013, Mozam-bique will likely offer up some 12 new oil and gas exploration blocks. Three of those blocks will be in the Rovuma basin, site of 130 trillion cubic feet of gas discoveries by Andarko (US) and Eni (Italy). The govern-ment estimates there may be another 150 trillion cubic feet left to confi rm.

The larger objective for Mozambique is to build liquefi ed natural gas (LNG) plants and transform itself from a net fuel importer to an exporter and provide itself with a cheap source of electricity. It’s a major goal for a country in which 80% of the population has no energy access.

Mozambique hopes to start exporting in 2018.

This is all part of Mozambique’s “Natu-ral Gas Master Plan”, which it hopes will earn it over $5 billion in annual revenues



isaoLtv

tC

Some Perceptions Some Perceptions of Mozambican Gas Market and of Mozambican Gas Market and the race to great discoveriesthe race to great discoveries

Mozambique: GDP likely to Mozambique: GDP likely to double by the end of the decadedouble by the end of the decade

MARKETS AND DEVELOPMENT:

WITH REVENUES OF MINING ACTIVITY:

The Mozambican government has released the results of a study made by the U.S. Company Anadarko Petroleum, concessionaire of fossil fuel exploration in the Rovuma Basin in the far north of the country. Accord-ing to the report, starting 2018 production output will be 50 million tons of liquefi ed natural gas (LNG) per year. This production output would be equivalent to Bolivia’s capacity.

Revenue from mining activity, ac-cording to the government estimations, could double the Gross Domestic Product (GDP) of Mozambique. The projections for the country in 2012 indicate GDP of just over US$ 25 billion.

The American company began con-struction of two gas liquefaction units, each with a production capacity of fi ve mil-lion tons per year, but plans exist to ready 10 such plants. The investment is about US$ 15 billion. Currently, thousands of Mozambican workers are employed in the activity, but in the coming years the num-ber could reach 10,000. Mozambique has gas reserves estimated at 623 billion cu-bic meters, the fourth largest in the world.

the measure on the condition that the employees return to work until next Tuesday (30).

The agreement may be the consequence of a strike that ended in tragedy in the country. Dozens of people died during labor protests and repression by security forces of South Africa.

In the last episode, the South African police launched tear gas and fi red rubber bullets to disperse a group of miners.

AN EXAMPLE is the case of the Largest silver mining com-pany in the world, Anglo American Platinum which agreed to rehire the 12 000 miners sacked for taking part in illegal strikes in recent weeks.

The National Union of Miners said the company took

Miners to Miners to rehire rehire thousands thousands of striking workers in South Africa of striking workers in South Africa

MINERS’ STRIKES:

Agreements and offers of wage increases may be an outcome to a wave of strikes that ended in tragedy in the country of Mandela.



Mozambique: State holds 92.5% stake of Cahora Mozambique: State holds 92.5% stake of Cahora Bassa after paying US$ 42 million to PortugalBassa after paying US$ 42 million to Portugal

The Mozambican state now holds 92.5% stake in Cahora Bassa fol-lowing the formal completion of the transfer agreement of 7.5% stake still owned by the Portuguese state, during a ministerial meeting last Tuesday in Maputo.

At the meeting which involved the energy ministers of Mozambique, Salvador Namburete, and the Portu-guese minister of Economy and Em-ployment, Alvaro Pereira, was formal-ized the transfer of shares held by the Portuguese State.

The remaining 7.5% belongs to the National Energy Networks (REN), a company that now is controlled by the China State Grid Corporation as part of the privatization process decided by the Portuguese government.

The deal was concluded with the transfer of US$ 42 million to Portugal, an amount that the Mozambican gov-ernment has obtained through a non-disclosed loan in the Mozambican commercial banks.

After the meeting, the two ministers signed a joint statement in which the two countries pledged in actions lead-ing to the internationalization of their energy companies and emphasized “the mutual interest in taking advan-tage of investment opportunities” in Mozambique. (Macauhub)

THE CONCESSION area contains a graphite mine and an iron ore processing plant, Mining AMG is going to reactivate the project, discontinued in 1999 due to high operating costs.

Jonathan Costello, one of the vice-pres-idents of the group, said there was an ex-pectation of producing six tons of graphite per year at peak production.

Ancuabe’s graphite regained interest when two years ago the district began re-ceiving electricity from the national grid, making viable mining operations, contrast-ing with the previous unsustainable use of diesel powered generators. (Macauhub)

Mozambique: Vale reduces target Mozambique: Vale reduces target of coal production in Mozambique of coal production in Mozambique

THE company estimated in August 4.6 million tons of coal production for the full 2012; the production is foreseen to in-crease in the future toping 11 million tons.

“We cannot produce at full capacity while we still have transportation limita-tions,” said Altiberto Brandão, operational director of Vale Mozambique, quoted by Reuter.

Brandao said Vale expects to export about 5 million tons of coal in 2013, after the completion of the modernization of the Sena railway line planned for late 2012.

After the improvements, the Sena line will be capable of transporting 6.5 million tons of coal per year, up from 2 million tonnes at present, before being expanded further. (Macauhub)

Vale halved the Moatize coal production and exports of this year in Mozambique, to 2.6 million tons due to limited rail-road capac-ity in the line linking the mine to the port of Beira, an offi cial of the company said.

BrieFs

Timor-Leste Petroleum Fund has in-creased in the last quarter about 400 million dollars to 11.05441 billion dol-lars, according to a report in the offi cial website of the country Central Bank.

THE PETROLEUM Fund quarterly report of Timor-Leste Central Bank (BCTL), shows that in the period ended September 30, 2012 the Fund’s capi-tal was 11,054,410,000 dollars against capital registered on 30 June, which was 10,600,740,000.

According to the report, the gross infl ow of money from taxes, royalties and other revenues during the quarter were 629.47 million dollars.

The cash outfl ows were 390.32 million dollars, of which 389 million were trans-ferred to the State Budget, the document said.

The country Petroleum Fund was es-tablished in 2005 with the intention of con-tributing to the effective management of the petroleum resources of Timor-Leste. By comparison, Mozambique does not have such a fund.

The fund is managed jointly by the Cen-tral Bank of Timor-Leste, responsible for operational management, and the Minis-try of Finance, responsible for the overall management. (Macauhub)

THE Brigadier Gold mining company based in Toronto, Canada, announced that samples of its exploration area in Tsiquire, in the district of Gorongosa, in the central province of Sofala, in Mozam-bique, indicate the presence of signifi cant quantities of gold and silver, according to reports from Mozambique News Agency.

In October, Brigadier Gold collected 41 samples that were tested simultaneously with other collected last June. The sam-ples cover an area of 1.2 square miles.

the Tsiquire gold project covers an area of 2,560 hectares near Gorongosa village. And Sogecoa Chinese company, a sub-sidiary of Anhui Foreign Economic Con-struction Group, is also prospecting for gold in the district of Gorongosa.

Timor-Leste: Petro-Timor-Leste: Petro-leum Fund raises US$ 400 leum Fund raises US$ 400 million in the period of million in the period of July to SeptemberJuly to September

Mozambique: Briga-dier Gold discovers dier Gold discovers gold and silver in gold and silver in GorongosaGorongosa

OIL AND EXPLORATION

MINING:

Mozambique: Mining AG AMG will Mozambique: Mining AG AMG will explore graffiti in Cabo Delgadoexplore graffiti in Cabo Delgado

MINING:

The company AMG Mining AG, a subsidiary of Advanced Metallurgi-cal Group (AMG) of the Netherlands, will explore graphite in the Ancuabe district, Cabo Delgado province, northern Mozambique, pursuant to a valid lease for 15 years, the group said in a statement.

NEWSe-MAIL: [email protected] / [email protected]


In the fi rst half of last year the weight of China in the Angolan exports was around 35%, but this year increased to 49%, with almost all other trading partners watching their weight reduced, according to the Angolan National Institute of Statistics cited by BPI.

“Noteworthy is the increase in exports to China by more than 50%, while other major trading partners reduced signifi cantly their demand for Angolan products”, says the BPI in its October report on the Angolan economy.

Among the countries that saw their weight decrease in Angolan exports are the United States, Canada and France. Petroleum products constitute the bulk of Angolan exports and almost all sales to China.

“We are taking our time, because we are also quite busy elsewhere in the world,” Maarten Wetselaar, executive vice presi-dent of Shell Upstream International, add-ing that “We’re not short of opportunities, but it’s certainly something we would like to be involved in.”

The nation may become the third-largest LNG producer, after Australia and Qatar, in as few as 10 years, Anadarko has said.

“Everyone is trying to fi gure out what the price is,” said the executive. “Many people will leave [Mozambique] because it is not their business. It’s too big, too complex, too risky in terms of technology, “added.

Shell Rovuma Gas Interests and the US$20 Shell Rovuma Gas Interests and the US$20 Billion investment in Gas by 2015Billion investment in Gas by 2015

Almost all Angola exports are destined to ChinaAlmost all Angola exports are destined to China

Royal Dutch Shell Plc (RDSA), Europe’s largest oil company, has earmarked more than $20 billion to spend on natural-gas projects through 2015 as profi t from extracting, processing and selling the fuel soars.

Almost half of Angola’s exports are already des-tined to China, petroleum products account for nearly all sales to the Asian country. While sales to other major trading partners such as the United States and France, continue to lose weight, according to the Por-tuguese bank BPI.

ROYAL Dutch Shell Plc (RDSA), Europe’s largest oil company, has earmarked more than $20 billion to invest on natural-gas projects through 2015 as profi t from ex-tracting, processing and selling the fuel, soars.

“Our integrated-gas earnings have more than tripled in the last fi ve years, reaching $9 billion over the last year,” Chief Execu-tive Offi cer Peter Voser said today. “We see growth opportunities to invest over $20 billion in 2012-15 period”

Shell and its peers have expanded global gas operations as demand for the fuel rises in Asia. Revenue from the lique-fi ed natural gas business, pushed higher by increased shipments following Japan’s Fukushima atomic crisis last year, drove a 2.3 percent gain in third-quarter profi t at

The Hague-based Shell. According to a statement, the company

expects LNG output to increase 30 per-cent to about 29 million metric tons a year once it completes projects in Australia.

“Shell is continuing to generate sub-stantial cash fl ows,” said Stuart Joyner, an analyst at Investec Securities Ltd. in Lon-don. “We expect Shell to pursue a more active acquisitions strategy.”

With eyes at the Rovuma Gas in Mo-zambique…

The listed company plans to buy posi-tions held by Anadarko and Eni in explo-ration projects in Mozambique. “For now they are just trade negotiations,” said ex-ecutive vice-president in an interview with Bloomberg.

It should be noted that oil production in Angola is expected to amount to 1.8 million barrels a day, up from 1.6 million last year.



OIL

OIL AND GAS:

energy demand to grow six fold, maritime traffi c as much as eightfold and demand for IT 20-fold in the period, he said.

Private capital, mobilized through in-frastructure bonds, can provide fi nancing for an economic transformation, Kaberu-ka said. Kenya, Ghana, Nigeria and Zam-bia are already using the instruments, he said.

“Infrastructure bonds have become important for the mobilization of infra-structure fi nancing and the development of domestic capital markets,” he said in a speech sent by e-mail today by Uganda’s central bank.

Oil discoveries in Sudan, South Su-dan, Uganda and Kenya as well as gas in Tanzania and Mozambique and other natural resources will enhance the trans-formation if well managed, he said. Intra-African and regional trade must also be developed, Kaberuka said. (Bloomberg)

bique delegates. We may purchase participating interest in the gas fi eld from one or more existing partners,” an Oil India offi cial said.

Anadarko has 36.5% stake in the block, while Mitsui holds 20%, PTTEP 8.5% and Empresa Nacional de Hidrocarbonetos has 15%.

Oil India is looking to join the Mozambique offshore success that several international fi rms have seen and are in talks with the Mozambican government. The fi rm wants to pick up a stake in the giant gas fi eld on the Anadarko operated Offshore Area 1 in the Rovuma Basin.

State-run Oil India is in talks with Mozambique to pick up a stake in giant gas fi eld Rovuma-1 after its government assured that the proposed energy policy would allow stakeholders to ship out their share of gas to their countries.

The Economic Times, quoting a company offi cial that wished to remain anonymous, said Oil India was also considering down-stream investments such as setting up fertilizer and petrochemi-cal plants in the country though a consortium of state oil fi rms because of availability of abundant gas.

“We had a very positive discussion with the visiting Mozam-

Oil India is looking to join the Mozambique offshore success

Indian Firm Wants Piece Indian Firm Wants Piece of Rovuma Gasof Rovuma Gas

energy demand to grow six fold maritime

Africa Needs $360 Billion Infrastructure, Africa Needs $360 Billion Infrastructure, Development Bank SaysDevelopment Bank Says

Africa requires $360 billion of infrastructure investment in the next 30 years to spur industrial growth, said Donald Kaberuka, president of Africa Development Bank.

IMPROVEMENTS in energy transport and information technology would reduce the continent’s reliance on agriculture,

Kaberuka said yesterday in Kampala, Uganda’s capital. The Program for Infra-structure Development in Africa projects



OIL AND GAS:

The text that was recently approved allows that states and municipalities to spend money in the following areas: infrastruc-ture, education, health, security, eradication of poverty, culture, sports, research, science and technology, civil defense, envi-ronment, climate change miti-gation and treatment of drugs addicted people.

The proposal approved in Congress still needs to be sanc-tioned by the President.

The Case of Norway: Retire-ment and stock exchange

Norway discovered its re-serves in the late 1960s. The government makes money through taxes on oil and not royalties. Since the 1990s, the earnings go to the Petroleum Fund, which in 2006 was re-named the Global Pension Fund of the Government.

The model is unique in the world. The government can spend a year only 4% of oil resourc-es in its budget. The rest is kept in the Fund and will be used in the future to deal with two problems already identifi ed by the Nor-wegians: the high cost of retirement (due to aging of the popula-tion) and the shortage in oil revenues (which is a fi nite resource that is not renewable).

In emergency cases, the fund is available immediately. Meanwhile, the money is invested in the stock market and

government bonds. Norway is proud to invest only in “ethi-cal practices”, which excludes purchase of tobacco companies stocks or companies suspected of employing child labor.

The Case of Venezuela: Social Spending… The oil revenues, and profi ts generated by taxes, is the foun-

dation of the Venezuelan economy. According to the Council of Foreign Relations, based in Washington, the oil revenues cor-respond to half of government revenues.

Since President Hugo Chávez came to power in 1998, oil has gained more importance in the Venezuelan economy. In 2006, the government took control of the majority of exploration proj-ects led by foreign companies.

In 2005, the Venezuelan government created the National De-velopment Fund which, in its charter, is a “company that works to optimize productive and social investments.” The money is spent on infrastructure projects, health, environment, energy, defense, basic industries, agriculture and education.

A recurring criticism that is made of this model is the lack of transparency, with analysts claiming that it is not possible to know exactly everything that is being funded with oil money.

Another problem is that the government budget and the Ven-ezuelan economy ended up heavily dependent on the market price fl uctuations. However, Chávez argues that social spending helped to reduce inequality in the country for the lowest rate in history.

The text that was recently approved allows that states and

Learn how countries use oil (or natural gas) moneyLearn how countries use oil (or natural gas) money

OIL generates enormous wealth for governments by several ways, through taxes on the sale of the product or through profi ts of oil companies, where the government has a stake in the com-pany or even its total control.

Besides taxes and profi ts, the main source of wealth for many governments are the royalties.

In theory, royalties are only a compensation paid to states and municipalities producers to cover various costs related to the exploration of natural resources, such as investments in infra-structure and environmental damage.

But as oil or natural gas, like any other natural resource is considered a national heritage, the issue of royalties wins stra-tegic outlines that determine how countries manage their natural resources. Each nation has different ways of dealing with royal-ties.

Check out four different models of use of money from natural resources

Brazil: States and Municipalities In Brazil, states and municipalities are entitled to almost 80%

of the royalties, according to the proposal recently established in the country.

The scheme of distribution of Brazilian oil royalties began to be rethought after the discovery of large reserves in the pre-salt layer of the Brazilian coast. The debate was dominated by one question: how much of the oil wealth belongs to the states and municipalities producers, and how much belongs to the rest of Brazil?

In 2010, deputies proposed the “Amendment Ibsen”, which ignored the producing regions and treated all states of the fed-eration in the same way. However, the proposal was vetoed by then President Luiz Inácio Lula da Silva.

Then politicians came to a progressive formula, which gradu-ally withdraws resources of States and Union producers, and transfers more money for the other states and municipalities.



Africa’s 2001 efforts to transform the mining industry as being counterproductive.

He noted that, while transformation was a necessity, the mea-sures taken to ensure transformation had “gotten in the way” of the actual transformation in the sector.

The country’s current “woes”, which included talks of nation-alization, policy and regulation uncertainty and labor disruptions, further stunted South Africa’s potential resource growth.

Government, labor and business should collaborate and “be-come friends”, to mitigate the country’s challenges and capitalize, along with the rest of the continent, on Asia’s growing economic growth, Gregory commented.

SGB Securities mining equities and commodity analyst Justin Froneman suggested a review of the regulatory and policy envi-ronment to improve investor sentiment, adding that uncertainty, as well as labor issues and related productivity, were contributing factors in investment exit.

Africa has been indicated to hold most of the world’s com-modities, including up to 80% of the world’s gold resources. (fi nd more on miningweekly.com)

According to Frank Gregory, from a Johannesburg-based advisory fi rm The Mineral Corporation, Africa in conjunction with China, would become the centre of the world’s trade.

AFRICA has many mineral resource-led opportunities and has been dubbed as a new frontier with an estimated 21% of its gross domestic product (GDP) sourced from the mining sector, com-pared with the rest of the world’s 4.3%.

Discussing the top factors impacting mining in Africa at the Junior Mining and Exploration Conference, in Johannesburg, he said that with China’s continuing urbanization rate of 20-million to 30-million people a year and resultant stimulation of demand, Af-rica stood to benefi t with China as a new player on the resource-rich continent.

Gregory said that China had a current fi nancial reserve of $2.5-trillion.

The country, which Gregory believed was ignoring the “13 rules of investment”, had been upstaged by many competing countries in terms of mining growth, dropping 2.5% in the period from 2001 to 2008, owing to its handling of its resource develop-ment.

Investment Solutions chief strategist Chris Hart cited South

Africa to benefit Africa to benefit from Asian growthfrom Asian growth

MINING INVESTMENTS:



PUB.

Prédio CardosoAv. 25 de Setembro, N. 1123,

1st and 2nd fl oor, Door “N”. • Tel.: +258 21 32 71 16Fax: +258 21 30 09 48 • PO BOX, 302

Cel: +258 84 30 66 780 / 84 27 29 471 / 82 62 34 124 E-mail: [email protected] • Web: www.prolog.co.mz

Maputo - Mozambique

Fire Systems

Risc Magament

Representation and Engeneering Services Provision

Logistics

1st and

Cel: +25E-mail: p

FIRE FIRE

FIGHTING FIGHTING

SYSTEMSSYSTEMS

is on track to become the largest producer in the world within fi ve years, becoming self-suffi cient by 2030 – than turning to net exporter, highlights the Agency’s analysis.

Contributing to this increase in produc-tion are growing reserves of crude ex-tracted through new technologies such as hydraulic fracturing which combined with horizontal drilling, makes it possible today to reach shale formations where oil con-centrates.

U.S reserves will also keep the growth trend on due to energy effi ciency mea-sures implemented by the Obama Admin-istration, which tend to strongly reduce the demand for crude, as emphasizes the “Fi-nancial Times”. Currently, the U.S. imports about 20% of its total energy needs.

The International Energy Agency also estimates an increase in world oil demand of 87.4 million barrels per day in 2011 to 99.7 million by 2035.

self-sexpo

Cotion tractehydrahoriz

U.S. to beat Saudi Arabia as U.S. to beat Saudi Arabia as the largest oil producer in 2017the largest oil producer in 2017

IEA REPORT:

casts that U.S. production of crude oil will increase from 6.3 million barrels per day this year to 6.8 million in 2013 - which cor-responds to its highest level since 1993.

Joining biofuels, such as ethanol, and natural gas derivatives, such as ethane and butane, it means that the U.S. will soon be producing more than Saudi Ara-bia (which is to extract a little less than 10 million barrels daily) and to Russia (which currently produces almost the same vol-ume as the Saudis).

According to the IEA report, which pres-ents projections until 2035, in fact the U.S.

PUB.

THE United States will dethrone Saudi Arabia in the position of the largest world oil producer. And it will be in the next de-cade, more precisely by 2017. So says the International Energy Agency (IEA) in its “World Energy Outlook”, released re-cently.

Currently, according to the latest data from the U.S. Department of Energy, the U.S. is the third largest oil producer, be-hind the Saudis and Russians. The fourth position belongs to China.

According to the “Financial Times”, the Energy Information Administration, fore-



Address: Av. 25 de Setembro, n° 1123 Prédio CardosoTelephone.: +258 21 32 71 16/ 17Fax: +258 21 32 71 17Director: Inguila SeveneEditor: Aunorio SimbineCollaborators: Nelson Charifo and Alexandre DunduroDesign: Luís Filipe TembeEnglish Language Reviser: Paulo PintoEmail: [email protected]: www.status.co.mz e www.

energiamocambique.co.mz

ProductionSTATUS-Consultores de Comunicação, Lda.

DISP. REG. N 5 GABINFO/DEC/2008

Technical Sheet

RISK AND EMERGENCY CONTROL PROGRAM

Means a risk and emergency control program as de-fi ned in the Mining Environmental Regulations.

ENVIRONMENTAL MANAGEMENT PROGRAM

Means an environmental mining program as defi ned in articles 8 and 10 of the Mining Environmental Regu-lations approved by Decree 26/2004, of 20 August and article of the Environmental Impact Assessment Regu-lations approved by Decree 45/2004, of 29 September.

COMMERCIAL PRODUCTIONL

Means producing annually in a Mining Concession Area no less than twenty percent (20%) of the design capacity of the contained mine(s), or where the mining operations consist solely of producing operations, twen-ty percent (20%) of the design capacity of processing plant(s).

ABOUT US

Aiming at accelerating the implementation of the Millennium Development Goals, Objectives and Priorities of National Development, the Mozambican Association for the Develop-ment of the sector of Energy & Extractive Industry (AMEX) will implement the Media Project Energy & Extractive Industry by 2015.

This project was initially conceived by Status - Communication Consultants in 2010 with the aim to educate and inform soci-ety about the dynamics of the Sector of Energy & Extractive Industry; Promoting Transparency, sharing ideas and knowl-edge related to the sustainable management of mineral and energy resources; and presenting the latest advances and de-velopments in the sector using the new Information and Com-munication Technologies. is a nonprofi t civil society organization legal personality, ad-ministrative, fi nancial and patrimonial advocating that the gains from the exploitation of mineral and energy resources should be at the service of sustainable development and im-proving the lives of Mozambicans by promoting transparency, right to information, accountability and communication for de-velopment in the sector.

OUR VISIONBeing a center of excellence in Information and Communica-tion, strategic promotion of good governance, transparency, accountability and corporate citizenship in the sector of Ener-gy & Extractive Industry for socio - economic and sustainable development in Mozambique using information and communi-cation technologies.

OUR MISSIONOur mission is to promote the right to information and com-munication for development in communities.

OUR GOALSThe goals of AMEX are:

a) promotion of the right to information; b) promotion of good governance, transparency and re-

sponsibility; c) promotion of Social Corporate Responsibility; d) advice and Consulting through the concept of commu-

nication for the development; e) training and community empowerment; f) promotion of rights and human capital, environmental

and public health education; g) promotion of partnership within the public and private

sector, as well as other organizations; h) advocacy and promotion of corporate citizenship; i) promotion of communities empowerment; j) operationalization of plans and projects.

NEWSe-MAIL: [email protected] / [email protected]


c u r i o s i t i e s

MEX are:

promote the right to information and com-

of excellence in Information and Communica-

ASSOCIAÇÃO MOÇAMBICANA PARA O DESENVOLVIMENTO DO SECTOR DA ENERGIA & INDÚSTRIA EXTRACTIVA

MOZAMBICAN ASSOCIATION FOR THE DEVELOPMENT OF ENERGY SECTOR & EXTRACTIVE INDUSTRY

ICAN ASSOCIATION FOR THE DEVELOPMENT OF ENERGY ICAN ASSOCIATION FOR THE DEVELOPMENT OF ENERGY

MINERAL PRODUCT PRICE

Means for the purpose of calculation and payment of royalty, the value of the quantity of Mineral product extracted which value is determined on the basis of the price of the Mineral Product obtained from certain con-tract area by the company on the sales of the mineral product excluding additional handling and transporta-tion costs and including any price adjustments resulting from applicable foreign exchange Hedging contracts or other fi nancing instruments. For the avoidance of any doubt, in the case of export sales of Mineral product, the mineral product price shall be the FOB price minus transport and handling charges incurred between the mine and the point of sale and in the case of domestic sales, as the sales prices minus transport and handling charges.

Accessing opportunities, developing markets, understanding regulation and building partnerships

3 - 6 December 2012Girassol Indy Congress Hotel & Spa, Maputo, Mozambique

www.oilandgas-africa.com

www.powermozambique.com

Solution Providers:

Media Partners:

Researched and developed by:

Advancing Mozambique’s Oil and Gas sector

• Find out where the high yield areas of opportunity lie• Be part of the first entrants on the market and benefit from the current hype• Get inside information on the oil and gas finds and potential finds• Understand Mozambican regulation and policies

Com o apoio do Governo:

Em Parceria com:

Your expert speaker panel includes insight from:

• Hon Salvador Namburete, Minister, Ministry of Energy• Dr. Lawrence Musaba, Center Manager, Southern Africa Power Pool• Peter Motonda, Acting CEO, Electricity Supply Commission of Malawi• Dr. Allexon Chiwaya, Chief Executive Office, Malawi Energy Regulatory Authority (MERA)• António Saide, National Director, Renewable Energy, Ministry of Energy• Willem Theron, General Manager: New Business Development, Southern African Energy Unit,

Eskom• Pascoal Bacela, National Director, Electricity, Ministry of Energy• Casimiro Francisco, Chairman, AMDCM (Mozambican Coal Development Association)

Why you should attend:

• Gain first hand insight into the latest expansion, transmission and distribution projects driving economic growth

• Understand how government is framing regulation to include a more dynamic energy mix - the new master plan policy and how this will boost investment

• Funding new generation projects• How to develop more effective and efficient electricity networks• Strengthening PPPs to accelerate electrification projects - insights into the African power market

demand and sustainability

3 - 6 December 2012Girassol Indy Congress Hotel & Spa, Maputo, Mozambique

Preparing for expansion in generation, transmission and distribution

Your expert speaker panel includes insight from:

• Hon Dr Esperanca Bias, Minister of Mineral Resources, Mozambique• Eugénio Silva, Director, AMDCM, Mozambique• Carlos Zacarias, Exploration Director, INP, Mozambique• Tavares Martinho, Head of Exploration, ENH, Mozambique• Samuel Levy, Senior Partner, SAL Caldeira Advogados & Representative, Petroleum

Association, Mozambique• Simon Ashby-Rudd, Head of Oil and Gas, Standard Bank, United Kingdom• Donovan Chimhandamba, Chief Executive Officer, rkein Capital Partners, South Africa• Mateus Zimba, Country Manager, Sasol, Mozambique

Solution Providers:

Media Partners:

Researched and developed by:

Enable your company to advertise its Brand and Services on our Biweekly Electronic Magazine Energy & Extractive Industry Mozambique,

Offi cial Website, Twitter and Facebook Page.

Commercial Department:Prédio Cardoso - Av. 25 de Setembro, N. 1123, 1º e 2º andar, Porta N.Tel.: +258 21 32 71 16 / 21 32 71 17Fax: +258 21 30 09 48Cel: +258 84 30 66 780PO Box: 302E-mail: [email protected] [email protected] Maputo - Mozambique

Enable your company to advertise its Brand and ServicesEnable your company to advertise its Brand and Services

8 Edit ions:

October

November

December

8.500,00Mt/month:

Newsletter-Ener & Industria Extractiva Moc-edicao Nr 19-Versao Ing

Documents

Transcript of Newsletter-Ener & Industria Extractiva Moc-edicao Nr 19-Versao Ing