{"id":27617,"date":"2022-10-11T15:52:02","date_gmt":"2022-10-11T15:52:02","guid":{"rendered":"https:\/\/www.africa-press.net\/mozambique\/all-news\/investments-in-electricity-roads-and-railways-vital-to-process-mineral-resources-in-mozambique"},"modified":"2022-10-11T16:02:27","modified_gmt":"2022-10-11T16:02:27","slug":"investments-in-electricity-roads-and-railways-vital-to-process-mineral-resources-in-mozambique","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/mozambique\/all-news\/investments-in-electricity-roads-and-railways-vital-to-process-mineral-resources-in-mozambique","title":{"rendered":"Investments in electricity, roads and railways vital to process mineral resources  in Mozambique"},"content":{"rendered":"<p><span style=\"color: #ff6600\"><strong>Africa-Press &#8211; Mozambique. <\/strong><\/span>The executive director of the Chamber of Mines of Mozambique (CMM), Euge\u0301nio Silva, suggests that, to secure the development of the mining sector, the government should continue to mobilise investment for the construction of energy generation and transport infrastructure and access to production sites.<\/p>\n<p>These investments would stimulate companies and other users to leverage local economic growth.<\/p>\n<p>\u201cOnce the infrastructure is in place, it will generate business opportunities for the private sector at different levels, including in the family sector,\u201d he stressed in an interview with \u2018Domingo\u2019.<\/p>\n<p>He cites as one example the recent construction of the Maputo Ring Road, which boosted the development of almost the entire area crossed by the highway. \u201cThese investments must be made by the state. Private companies may help make them viable and one of the ways to do that is for companies to pay for the use [of infrastructure]\u201d.<\/p>\n<p>Another additional solution for the development of infrastructure would be the electrification of the country\u2019s railway network, as this could replace a huge amount of diesel used in this sector.<\/p>\n<p>\u201cImporting diesel to power locomotives not only requires the continuous disbursement of large sums in foreign exchange, but also represents a major logistical challenge and exposes industries and the country to the volatility of international market prices, as is now seen with the Russia -Ukraine war,\u201d he observed.<\/p>\n<p>In his opinion, the use of electric traction in the rail system would secure all the advantages mentioned, as well as actually expanding the energy transmission and distribution network, a critical factor for economic and social development.<\/p>\n<p>\u201cWe would start with the new railway projects, such as the Macuse Logistics Corridor, which the existing lines could then follow,\u201d he suggested.<\/p>\n<p>These concerns had been raised by Euge\u0301nio Silva, who said that, despite the country having immense potential in mining, difficulties in its full exploitation persist due to the lack of access roads and, above all, of electrical energy of sufficient quality for processing.<\/p>\n<p>For this speaker, electrical energy is one of the most important factors in the dynamization of the mining industry \u2013 witness the number of exploitation operations currently constrained by lack of electricity.<\/p>\n<p>\u201cInvesting in electricity is extremely expensive. Mozambique has enormous potential for the production of renewable and traditional energies, but to translate this potential into real investment aimed at production, transport and transmission is a complicated process,\u201d Silva acknowledged.<\/p>\n<p>He recalled that large operations are hampered, regarding their scale, by the lack of sufficient and viable energy and infrastructure, which, in turn, conditions the processing of the mineral resources.<\/p>\n<p>\u201cWe want to see mineral resources processed locally to add value and create jobs, but often this additional step represents a huge energy challenge,\u201d he said.<\/p>\n<p><b>Risk activity <\/b><\/p>\n<p>Euge\u0301nio Silva explained that mining involves different risks. One of these is financial risk, because there is a lot of work between the identification of potential and the determination of actual reserves, with no guarantee that deposits will actually be found. \u201cDuring this process, it is not certain whether or not finds have economic value and can generate profits,\u201d he mentions.<\/p>\n<p>After that, depending on the type of deposit, the form of exploitation, methods and equipment used, danger lurks \u2013 for both open pit and underground mines. \u201cIt is necessary to take into account that disasters happen in both large-scale and small-scale mining,\u201d he underlined.<\/p>\n<p>The risks are increased In the case of artisanal mining, the source highlighted, because wells and galleries are often out in the open, which endangers the lives of those living nearby. Excavations can be more than 20 metres deep, with no signage indicating their existence.<\/p>\n<p>\u201cOften excavations are done on a horizontal axis, which adds to the risk of collapsing,\u201d Silva notes.<\/p>\n<p>Operators are, however, often aware of how to mitigate risks, protect vertical wells and create safer conditions for their work.<\/p>\n<p><b>Overlapping rights<\/b><\/p>\n<p>Lack of institutional coordination means that, in industrial exploitation, there is often an overlap between Right to Use (DUAT) rights and mining licenses. This is normal, but not desirable, Silva says.<\/p>\n<p>\u201cIt is normal because we are talking about two types of DUAT. In these cases, what the law determines is that this must be resolved between the two holders,\u201d he argues.<\/p>\n<p>The fact is that mining title covers many forms of exploitation, which may include the soil or the subsoil only, but even when restricted to the subsoil, ends up affecting the soil because the operator will always need space and resources on the surface.<\/p>\n<p>But what, in Euge\u0301nio Silva\u2019s opinion, should never occur is any overlap between mining licences, mainly because the regulator has a department which deals exclusively with the delimitation and exact contours of each licence area.<\/p>\n<p>This computer tool is based on the geographic system with the necessary precision to delimit each area so that there is no overlap.<\/p>\n<p><strong>For More News And Analysis About <a href=\"https:\/\/www.africa-press.net\/mozambique\">Mozambique<\/a> Follow <a href=\"https:\/\/www.africa-press.net\/\">Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Africa-Press &#8211; Mozambique. The executive director of the Chamber of Mines of Mozambique (CMM), Euge\u0301nio Silva, suggests that, to secure the development of the mining sector, the government should continue to mobilise investment for the construction of energy generation and transport infrastructure and access to production sites. These investments would stimulate companies and other users [&hellip;]<\/p>\n","protected":false},"author":84,"featured_media":27615,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5],"tags":[233,281,283],"class_list":["post-27617","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","tag-africa-press","tag-africa-press-mozambique","tag-mozambique"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.1 (Yoast SEO v27.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Investments in electricity, roads and railways vital to process mineral resources in Mozambique - Mozambique<\/title>\n<meta name=\"description\" content=\"The executive director of the Chamber of Mines of Mozambique (CMM), Euge\u0301nio Silva, suggests that, to secure the develop ...\" \/>\n<meta name=\"robots\" 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