NEWS

Mozambique’s ENH seeks to raise US$1.5 billion

Mozambique’s state oil and fuel company Empresa Nacional de Hidrocarbonetos (ENH) is launching a set of investor presentations this week to raise US$1.5 billion to fund the company’s share in the Area 1 natural gas project, in which it holds a 15% stake, said the chairman of the Mozambican state company.

Omar Mithá told Bloomberg that the first investor meeting will take place this week in Johannesburg, followed by London, adding that funding may come from banks, mutual funds or even stakes in the project.

This will be the first time that a Mozambican state-owned company will use the international financial markets following the restructuring of the debt taken on by Mozambican tuna company Ematum with backing from the State, agreed with investors and finalised in late October.

Although Fitch Ratings has recently upgraded Mozambique’s credit rating from “DR” to “CCC”, the country is still identified as having very high risks, and its investment-grade debt is highly speculative.

The Rovuma Basin Area 1 project recently changed operators after Total acquired the assets of the Anadarko Petroleum Corp group in Africa following the acquisition of the latter by Occidental Petroleum Corp.

The block in question is operated by the Total group, with 26.5%, and its partners are ENH Rovuma Area A, a subsidiary of Mozambican state oil group ENH with 15%, Mitsui E&P Mozambique Area1 Ltd. ( (20%), ONGC Videsh Ltd. (10%), Beas Rovuma Energy Mozambique Limited (10%), BPRL Ventures Mozambique B.V. (10%), and PTTEP Mozambique Area 1 Limited (8.5%). (Macauhub)

Two Chinese companies bid to supply Mozambique with liquid fuels

Addax Petroleum, of the Sinopec Group and Petrochina are the two Chinese companies out of ten that submitted bids for providing fuel to Mozambique for six months from 1 January 2020, said João Macandja, managing director of the Mozambican oil import company, Imopetro.

The official also told the AIM news agency, after the opening session of the proposals submitted to the international public tender, that the Government should announce the winner “soon.”

Macandja said that the Government intends to reduce fuel import costs by about US$800 million a year.

Imports of liquid fuels into Mozambique are based on international public tenders that are launched every six months, and Imopetro, which brings together all gasoline companies operating in Mozambique, is the only entity authorised to import liquid fuels.

There are currently 15 companies operating in the fuel distribution market in Mozambique, compared to the three that existed in 1997, when Imopetro was created.

In addition to Addax Petroleum and Petrochina, the remaining companies competing for the tender were Augusta Petroleum (United States), Finergy Petroleum (South Africa), Anglo-Swiss Glencore, Independent Petroleum Group (Kuwait), Sahara Petroleum International (Kuwait), TOTSA Total Oil Trading S.A. ( France), Trafigura (Singapore) and Vitol (Netherlands). (Macauhub)

Government is defending Mozambique’s reputation, says Minister of Economy and Finance

The repayment of Mozambican tuna company Ematum’s debt is intended to restore Mozambique’s good reputation as a country that meets its international obligations, said Mozambican Minister of Economy and Finance, Adriano Maleiane.

The minister also said that the decision is not an affront to the decision of the Constitutional Council (CC), which in a ruling issued earlier this year declared the debt contracted by that company with sovereign guarantees, but without the approval of the Mozambican parliament, as null and void.

The Government recently paid out US$38 million as a “condition of consent” so that creditors of Ematum’s 850 million-euro Eurobonds would accept the second restructuring plan.

Maleiane, quoted by Mozambican daily newspaper Notícias, also said that, despite the Constitutional Council’s decision, the Government had continued to negotiate with Ematum’s creditors, while, through the Attorney General’s Office, bringing an action in London to act against the creditors of the also publicly owned company ProIndicus

Maleiane noted that the CC ruling, while declaring the debts to be void, also noted the need to observe all the legal consequences of this process, which is “precisely what the Government is doing.”

The Minister of Economy and Finance’s remarks were made on the sidelines of the launch of the National Public Investment System Platform (e-SNIP), which is part of the ongoing reform process in the state’s financial management. (Macauhub)

Macau and Shanghai have “great complementarity” in relations with Portuguese-speaking countries

Shanghai City’s trade with Portuguese-speaking countries reached US$10 billion in 2018, said the president of the Macau Institute for Trade and Investment Promotion (IPIM), according to whom that city and Macau show have “great complementarity” in this cooperation.

Irene Lau, speaking on Wednesday in Shanghai at a presentation of the Macau Service Platform for Economic and Trade Cooperation between China and the Portuguese-speaking Countries, said Macau, “as a trade services platform between China and Portuguese-speaking countries is welcoming unprecedented development opportunities that are beneficial to all parties within the framework of economic and trade cooperation.”

In addition to trade, the IPIM president said, “various investment projects are underway” in all these countries, demonstrating that “there is a great deal of complementarity between the parties,” and that “with the Macau platform, cooperation and interaction will be deepened and broadened.”

IPIM led the delegation of over 100 businesspeople from the trade, convention and exhibition, financial, industrial and professional services sectors to the 2nd China International Import Exhibition.

The purpose of participation, Lau said, is “to strengthen bilateral and multilateral cooperation relations between Chinese cities and provinces, such as Shanghai, and Portuguese-speaking countries, in order to boost the construction of the China-Portuguese-Speaking Countries platform.” (Macauhub)

Total Group wants to increase liquefied natural gas production in Mozambique

French group Total intends to increase the production of liquefied natural gas in the Area 1 block of the Rovuma basin, northern Mozambique, with the installation of two additional liquefaction modules, an official said in Cape Town, South Africa.

Mike Sangster, CEO of Total E&P Nigeria Limited, quoted by Reuters, said the group had begun examining the installation of those two modules, “as there are enough resources to justify a decision to do so.”

Total recently completed the acquisition of the Anadarko Petroleum Corporation group’s 26.5% stake in that block for US$3.9 billion as part of the acquisition of group’s African assets, acquired in the meantime by the Occidental Petroleum Corporation.

The initial project involved the installation of two natural gas liquefaction modules with a production capacity of 12.9 million tonnes per year.

The block in question is operated by the Total group, with 26.5%, and its partners are ENH Rovuma Area A, a subsidiary of Mozambican state oil group ENH with 15%, Mitsui E&P Mozambique Area1 Ltd. ( (20%), ONGC Videsh Ltd. (10%), Beas Rovuma Energy Mozambique Limited (10%), BPRL Ventures Mozambique B.V. (10%), and PTTEP Mozambique Area 1 Limited (8.5%). (Macauhub)

India was Mozambique’s main export destination in 2018

In 2018 India was Mozambique’s main export destination with a share of 27.32% or US$1.369 billion, according to the country’s National Statistics Institute in its Statistical Yearbook for last year.

The remaining four major markets in the top five for Mozambican products were, by order of importance, the Netherlands, with a market share of 17.38% and a value of US$871 million, South Africa with 12.24% and US$613 million, China with 4.78% and US$239 million and Hong Kong with 4.59% and US$229 million.

The top 10 export markets list also included Singapore (4.56%), Poland (2.59%), the United States (2.43%), the United Kingdom (1.88%) and the United Arab Emirates (1.83%).

As regards the main import markets, South Africa came first with a share of 27.79% and a value of US$1.929 billion, followed by China with 11.51% and US$799 million, the United Arab Emirates with 7.47% and US$518 million, the Netherlands with 7.46% and US$518 million, and India with 7.06% and US$490 million.

Completing the top 10 places in major import markets were Singapore, with 4.07% and US$282 million, Portugal with 3.32% and US$230 million, the United States with 3.14% and US$217 million, Japan with 2.83% and US$196 million, and Thailand with 2.28% and US$158 million.

Overall, Mozambique has two major trading partners – South Africa, with US$2.543 billion in trade, and India with US$1.859 billion.

Mozambique, whose main export products are coal to India, aluminium to the Netherlands and electricity and gas to South Africa, recorded a trade deficit of US$1.931 billion in the year under review, resulting from exports of US$5.012 billion and imports of US$.6.944 billion. (Macauhub)

Mozambican government launches public tender for real estate project

The Government of Mozambique within the next three months plans to launch a public tender for the construction of a real estate project of state-owned airport company Aeroportos de Moçambique, said the Minister of Transport and Communications, Carlos Mesquita.

The real estate project, due to be built on an area of approximately 35 hectares in the Costa do Sol neighbourhood, on the outskirts of Maputo, “has undergone some changes” in its initial design, said the minister, to adapt to the current reality.

“The model of the soon to be launched tender will allow Aeroportos de Moçambique to secure funds and partners for the project, and the investor will have to take on the risk related to project implementation,” he said.

Mozambican newspaper O País reported that this real estate project in the Costa do Sol neighborhood requires financing of US$250 million from abroad. (Macauhub)

Syrah Resources begins production of spherical graphite in the United States with ore mined in Mozambique

Syrah Resources began production of purified spherical graphite at its battery anode component plant in Vidalia, Louisiana, United States, using ore mined in Balama, Mozambique, the Australian group said in a market statement.

“This is a significant milestone in the development of the Vidalia plant and in the execution of the group’s strategy of achieving a vertically integrated production model [from extraction to marketing] of battery anode components,” the statement said.

Shaun Verner, the group’s chief executive, also said that the start of production at the US plant is an complementary and alternative source to battery anodes that are produced in China, “being the first full-scale, fully integrated production facility outside from China.”

This announcement comes after the group reported last October that it would immediately cut about 30% of its workforce at the graphite mine in the Balama district of Cabo Delgado province, northern Mozambique.

The market filing also said that there would be a reconfiguration of existing mining and ore processing models, as well as a reduction in the management structure of the mining operation in Mozambique.

All of these cost reduction projects are a result of the current state of the graphite market and the group’s Board of Directors intends to save between 20% and 25% of the US$9 million forecast for the entire Balama operation in 2019.

Syrah Resources operates in Mozambique through its subsidiary Twigg Exploration and Mining Limitada. (Macauhub)

NEWS

Mozambique’s state oil and fuel company Empresa Nacional de Hidrocarbonetos (ENH) is launching a set of investor presentations this week to raise US$1.5 billion to fund the company’s share in the Area 1 natural gas project, in which it holds a 15% stake, said the chairman of the Mozambican state company.

Omar Mithá told Bloomberg that the first investor meeting will take place this week in Johannesburg, followed by London, adding that funding may come from banks, mutual funds or even stakes in the project.

This will be the first time that a Mozambican state-owned company will use the international financial markets following the restructuring of the debt taken on by Mozambican tuna company Ematum with backing from the State, agreed with investors and finalised in late October.

Although Fitch Ratings has recently upgraded Mozambique’s credit rating from “DR” to “CCC”, the country is still identified as having very high risks, and its investment-grade debt is highly speculative.

The Rovuma Basin Area 1 project recently changed operators after Total acquired the assets of the Anadarko Petroleum Corp group in Africa following the acquisition of the latter by Occidental Petroleum Corp.

The block in question is operated by the Total group, with 26.5%, and its partners are ENH Rovuma Area A, a subsidiary of Mozambican state oil group ENH with 15%, Mitsui E&P Mozambique Area1 Ltd. ( (20%), ONGC Videsh Ltd. (10%), Beas Rovuma Energy Mozambique Limited (10%), BPRL Ventures Mozambique B.V. (10%), and PTTEP Mozambique Area 1 Limited (8.5%). (Macauhub)

Addax Petroleum, of the Sinopec Group and Petrochina are the two Chinese companies out of ten that submitted bids for providing fuel to Mozambique for six months from 1 January 2020, said João Macandja, managing director of the Mozambican oil import company, Imopetro.

The official also told the AIM news agency, after the opening session of the proposals submitted to the international public tender, that the Government should announce the winner “soon.”

Macandja said that the Government intends to reduce fuel import costs by about US$800 million a year.

Imports of liquid fuels into Mozambique are based on international public tenders that are launched every six months, and Imopetro, which brings together all gasoline companies operating in Mozambique, is the only entity authorised to import liquid fuels.

There are currently 15 companies operating in the fuel distribution market in Mozambique, compared to the three that existed in 1997, when Imopetro was created.

In addition to Addax Petroleum and Petrochina, the remaining companies competing for the tender were Augusta Petroleum (United States), Finergy Petroleum (South Africa), Anglo-Swiss Glencore, Independent Petroleum Group (Kuwait), Sahara Petroleum International (Kuwait), TOTSA Total Oil Trading S.A. ( France), Trafigura (Singapore) and Vitol (Netherlands). (Macauhub)

The repayment of Mozambican tuna company Ematum’s debt is intended to restore Mozambique’s good reputation as a country that meets its international obligations, said Mozambican Minister of Economy and Finance, Adriano Maleiane.

The minister also said that the decision is not an affront to the decision of the Constitutional Council (CC), which in a ruling issued earlier this year declared the debt contracted by that company with sovereign guarantees, but without the approval of the Mozambican parliament, as null and void.

The Government recently paid out US$38 million as a “condition of consent” so that creditors of Ematum’s 850 million-euro Eurobonds would accept the second restructuring plan.

Maleiane, quoted by Mozambican daily newspaper Notícias, also said that, despite the Constitutional Council’s decision, the Government had continued to negotiate with Ematum’s creditors, while, through the Attorney General’s Office, bringing an action in London to act against the creditors of the also publicly owned company ProIndicus

Maleiane noted that the CC ruling, while declaring the debts to be void, also noted the need to observe all the legal consequences of this process, which is “precisely what the Government is doing.”

The Minister of Economy and Finance’s remarks were made on the sidelines of the launch of the National Public Investment System Platform (e-SNIP), which is part of the ongoing reform process in the state’s financial management. (Macauhub)

Shanghai City’s trade with Portuguese-speaking countries reached US$10 billion in 2018, said the president of the Macau Institute for Trade and Investment Promotion (IPIM), according to whom that city and Macau show have “great complementarity” in this cooperation.

Irene Lau, speaking on Wednesday in Shanghai at a presentation of the Macau Service Platform for Economic and Trade Cooperation between China and the Portuguese-speaking Countries, said Macau, “as a trade services platform between China and Portuguese-speaking countries is welcoming unprecedented development opportunities that are beneficial to all parties within the framework of economic and trade cooperation.”

In addition to trade, the IPIM president said, “various investment projects are underway” in all these countries, demonstrating that “there is a great deal of complementarity between the parties,” and that “with the Macau platform, cooperation and interaction will be deepened and broadened.”

IPIM led the delegation of over 100 businesspeople from the trade, convention and exhibition, financial, industrial and professional services sectors to the 2nd China International Import Exhibition.

The purpose of participation, Lau said, is “to strengthen bilateral and multilateral cooperation relations between Chinese cities and provinces, such as Shanghai, and Portuguese-speaking countries, in order to boost the construction of the China-Portuguese-Speaking Countries platform.” (Macauhub)

French group Total intends to increase the production of liquefied natural gas in the Area 1 block of the Rovuma basin, northern Mozambique, with the installation of two additional liquefaction modules, an official said in Cape Town, South Africa.

Mike Sangster, CEO of Total E&P Nigeria Limited, quoted by Reuters, said the group had begun examining the installation of those two modules, “as there are enough resources to justify a decision to do so.”

Total recently completed the acquisition of the Anadarko Petroleum Corporation group’s 26.5% stake in that block for US$3.9 billion as part of the acquisition of group’s African assets, acquired in the meantime by the Occidental Petroleum Corporation.

The initial project involved the installation of two natural gas liquefaction modules with a production capacity of 12.9 million tonnes per year.

The block in question is operated by the Total group, with 26.5%, and its partners are ENH Rovuma Area A, a subsidiary of Mozambican state oil group ENH with 15%, Mitsui E&P Mozambique Area1 Ltd. ( (20%), ONGC Videsh Ltd. (10%), Beas Rovuma Energy Mozambique Limited (10%), BPRL Ventures Mozambique B.V. (10%), and PTTEP Mozambique Area 1 Limited (8.5%). (Macauhub)

In 2018 India was Mozambique’s main export destination with a share of 27.32% or US$1.369 billion, according to the country’s National Statistics Institute in its Statistical Yearbook for last year.

The remaining four major markets in the top five for Mozambican products were, by order of importance, the Netherlands, with a market share of 17.38% and a value of US$871 million, South Africa with 12.24% and US$613 million, China with 4.78% and US$239 million and Hong Kong with 4.59% and US$229 million.

The top 10 export markets list also included Singapore (4.56%), Poland (2.59%), the United States (2.43%), the United Kingdom (1.88%) and the United Arab Emirates (1.83%).

As regards the main import markets, South Africa came first with a share of 27.79% and a value of US$1.929 billion, followed by China with 11.51% and US$799 million, the United Arab Emirates with 7.47% and US$518 million, the Netherlands with 7.46% and US$518 million, and India with 7.06% and US$490 million.

Completing the top 10 places in major import markets were Singapore, with 4.07% and US$282 million, Portugal with 3.32% and US$230 million, the United States with 3.14% and US$217 million, Japan with 2.83% and US$196 million, and Thailand with 2.28% and US$158 million.

Overall, Mozambique has two major trading partners – South Africa, with US$2.543 billion in trade, and India with US$1.859 billion.

Mozambique, whose main export products are coal to India, aluminium to the Netherlands and electricity and gas to South Africa, recorded a trade deficit of US$1.931 billion in the year under review, resulting from exports of US$5.012 billion and imports of US$.6.944 billion. (Macauhub)

The Government of Mozambique within the next three months plans to launch a public tender for the construction of a real estate project of state-owned airport company Aeroportos de Moçambique, said the Minister of Transport and Communications, Carlos Mesquita.

The real estate project, due to be built on an area of approximately 35 hectares in the Costa do Sol neighbourhood, on the outskirts of Maputo, “has undergone some changes” in its initial design, said the minister, to adapt to the current reality.

“The model of the soon to be launched tender will allow Aeroportos de Moçambique to secure funds and partners for the project, and the investor will have to take on the risk related to project implementation,” he said.

Mozambican newspaper O País reported that this real estate project in the Costa do Sol neighborhood requires financing of US$250 million from abroad. (Macauhub)

Syrah Resources began production of purified spherical graphite at its battery anode component plant in Vidalia, Louisiana, United States, using ore mined in Balama, Mozambique, the Australian group said in a market statement.

“This is a significant milestone in the development of the Vidalia plant and in the execution of the group’s strategy of achieving a vertically integrated production model [from extraction to marketing] of battery anode components,” the statement said.

Shaun Verner, the group’s chief executive, also said that the start of production at the US plant is an complementary and alternative source to battery anodes that are produced in China, “being the first full-scale, fully integrated production facility outside from China.”

This announcement comes after the group reported last October that it would immediately cut about 30% of its workforce at the graphite mine in the Balama district of Cabo Delgado province, northern Mozambique.

The market filing also said that there would be a reconfiguration of existing mining and ore processing models, as well as a reduction in the management structure of the mining operation in Mozambique.

All of these cost reduction projects are a result of the current state of the graphite market and the group’s Board of Directors intends to save between 20% and 25% of the US$9 million forecast for the entire Balama operation in 2019.

Syrah Resources operates in Mozambique through its subsidiary Twigg Exploration and Mining Limitada. (Macauhub)

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