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BI-WEEKLY OCTOBER, 31 st 2012 - YEAR I Bilingue (ENGLISH VERSION)

Nr. 18
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WE COMMUNICATE WITH ENERGY


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NATURAL RESOURCES IN MOZAMBIQUE:


ear reader of the electronic magazine Energy & Extractive Industry Mozambique, welcome to the XVIII edition of the rst and only window of information on energy and mining sector in Mozambique. Firstly, we would like to congratulate the government of Mozambique for having been accepted as a doer of the requirements by the Initiative for Transparency in the Extractive Industry (EITI). The Media Project Energy Mozambique, as an expertise organ of communication in the energy sector, will continue to offer to the readers content of public interest with respect to all operations of the extractive industry sector in order to contribute to greater transparency, good governance, access to information on natural resources that the country possesses. Because always opted for originality and specialization, this time, the rule does not ee, this issue brings you relevant information regarding the national coal industry, building on discoveries, developments of large-scale coal, natural gas, energy renewable energy, among others. Energy for Human Sustainable Development is the theme that heads this edition; it addresses the importance of human capital for socio-economic development. We also invite Ricardo Saad, CEO of Vale Mozambique, who focuses on the importance of East Africa, the impact of Vales operations on the Mozambican economy, and the design of the Nacala Corridor, a great interview conducted by one of our partners of the Business Day. Later, nd more information on the sector, national and international news; always aiming to ensure access to information as a fundamental right of the Mozambican citizen and its importance to the community.

Energy for Human Sustainable Development


There is no need to be a believer or have an effervescent religious spirit to realize that Mozambique is a blessed country by huge amounts and varieties of energy and natural resources here available. In other places of the world, people travel miles in order to see a river, a sea, and others still waiting for months to see the sunlight, a fact that among us does not constitute any kind of luxury or mystery for anyone.
nations/people (United Nations) - the Green Economy substantiated by the famous 3Rs acronym which means Reducing, Reusing and Recycling. Its no novelty for anyone these days, the huge agricultural potential available in Mozambique composed by 36 million ha of arable land. Nor is it novelty the underutilization of this potential and the resulting bags of hunger and extreme poverty that many Mozambicans face day-to-day, especially women, children, elderly and physically disabled people, in particular due to their lack of energy to drive the development of the agriculture logistics chain (irrigation, transport, infrastructure, processing, storage, marketing). Energy is an indispensable resource for human life and more than that is the key to economic development and poverty reduction. According to the World Bank (2009) the provision of energy services, particularly for the poor, is a major contribution

AT THE outset this availability of natural resources and energy potential (which means blessing for us) should mean happiness for Mozambican people. But thats not the reality lived in our country. The true state of affairs is at least dark. However, the history of utilization and management of this gift is not the desired one. Large reserves of water from about 80 rivers owing through the country to the Indian Ocean with the minimum usage possible; The sun is mostly used simply for the antique practice of drying sh, clothes beyond enlightening the day - its natural function, the winds are used in such a primitive way as it was used in the fteenth

century. Nevertheless, what we are trying to illustrate here is the size of the waste of several sources of clean and renewable energy provided by nature to Mozambique, sources that could be at the service of the country sustainable development towards the highest and noble desideratum of all

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to the achievement of the well-known Millennium Development Goals. Without the energy resources, economies do not grow and poverty cannot be reduced. This is an important input for all economic sectors, allowing the transportation of people and products, and providing electricity to industrial, commercial and agricultural sectors, as well as important social ser-

vices like education and health. However, many countries in development face an energy decit that affect the business and reduces growth. Hundreds of millions of households continue to depend on traditional use of solid fuels for cooking and heating; they have no access to electricity or are in both conditions, let us say, undignied. These families, especially women and children, are exposed to high levels of harmful smoke to health and are deprived of opportunities to improve their income.

Now, on one hand, rural electrication remains a challenge and priority for the current Mozambican authorities and their partners. Moreover, the use of renewable energy in the past 15 years has been heavily touted by the National Energy Fund (FUNAE) as a crucial vector to combat poverty in Mozambique. The results of these initiatives are visible, both National power network as well as renewable energies benet yet a much smaller share of the Mozambican population in real terms (more than 60% of the population does not benet from modern energy). Often, institutions use national averages that often fail to capture and av translate the real rate of energy consumptra tion by Mozambican families. This is vistio ible to the level of the urban areas. One thing is the availability, the existence of thi electrical network in a region, city or vilele lage and another thing is the possibility of lag citizens to have access to these sources cit of energy (which means to be able to have f it effectively). The mere existence of energy sources does not mean that people are actually beneting from them as well as the existence of an automaker in Maputo does not mean that the inhabitants of the whole Maputo have a car. It is imperative and indispensable the elaboration of a strategy for the energy sector, a policy that will meet the demands of Mozambicans people and the current challenges of the country as a whole and one that will be the crucial vector of agricultural promotion, boosting the development of agricultural industries, transport, communication, expanding and improving the performance of social and economic; basic and essential services for poverty reduction and human sustained and sustainable development promotion.

COAL:

Government of Mozambique concerned about delays in Coal India mining operations

THE MOZAMBIQUE government is concerned about the unexplained delays by the Indian state company Coal India to commence the operation of two coal blocks in Mozambique, said in New Delhi the Deputy Minister of Mineral Resources of Mozambique Abdul Razak Noormahomed. Cited by The Wall Street Journal, the deputy minister said that the Mozambican government has been cooperating with Coal India to ensure that the company can meet the commitments they undertook. The groups president, S. Narsing Rao acknowledged the delays, saying there has been considerable progress in Mozambique in the last three to four months and stressed that the

exploration contract will be signed within the next two weeks and that eld operations will begin no later than December. (Macauhub)

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interview

Insight Interview Ricardo Saad, Vale Mozambique CEO


Ricardo Saad, CEO of Vale Mozambique, talks on the signicance of East Africa, Vales impact on the economy, and the Nacala Corridor project in the country.
WHAT is the signicance of Vales Mozambique operation with respect to its global activities? RICARDO SAAD: Our strategy is to grow our core businesses, such as iron ore, coal, copper, nickel, and fertilizers. With regards to coal, Mozambique is our biggest operation and its a very important project for us. On that account, we are happy to be celebrating one year since our rst production. Besides some difculties with the countrys infrastructure, we are happy because we are succeeding. The issues regarding a Greeneld project like this are challenging, but the environment in Mozambique is very positive, and the government and society welcomes us. Mozambique was our rst foray into Africa. The Inco acquisition was a landmark in Vales international growth and since 2007 and 2008 we have started to invest here and it has been a good learning process. Its amazing how we are progressing. It is encouraging not only for us, but for other companies to invest in the region. We are developing a copper mine in Zambia, and we are also exploring Angola and Congo, for which Mozambique is a good platform. How can undertakings such as the Nacala Project leverage the growth of other sectors? R.S.: We are carrying out the Nacala Project in partnership with Mozambique Ports and Railways (CFM), and it will surely leverage business for everybody. Vale is investing in infrastructure in partnership with other companies. Its an inclusive project meaning that other companies can have access to it, even within other industries like agriculture, forestry, as well as public transportation. What sort of conditions will other companies face to take advantage of the infrastructure that Vale is investing heavily in? R.S.: We are basing ourselves on international benchmarking in terms of establishing a tariff system, which is important for us to make our coal operation feasible. Of course, infrastructure is linked with miningreserves of any kind of minerals without infrastructure are worth nothing. For us at Vale, it is important to pro-

I In fact, the distance from Tete to Nacala Velha is 912 kilometers, and of this about V 230 kilometers is greeneld. 2 Do you face any difculties in crossing borders with regards to transport? i R.S.: No. Malawi and Mozambique have signed treaties regarding this math ter t and we fully trust in them. Besides, we believe that mining operations can serve as an anchor for railways and make them protable, creating a business lever. \What additional investment opportunities will Vales investment in the Port of Nacala bring to the region? R.S.: First of all, our investment in the Port of Nacala is to facilitate our coal exports. However, we know that once the infrastructure is there the door will be open to other investments. For example, if you also consider the gas that Mozambique has been discovering, the possibility to build other projects around the Port of Nacala becomes very high when both coal and gas are present. The port is geographically amazing. It is a protected bay and it is deep enough to allow the operation of large vessels. It will be completed early in 2015 in line with the rest of the Nacala Corridor. We are looking at investing about $1.1 billion in the port, while the whole corridor will cost around $4.5 billion to connect Tete to Nacala, including the port. What is the status of the proposed 600-MW thermal power plant at the Moatize Mine? We will probably do it in phases, implementing 300 MW in capacity over Phase I. The design is such that the capacity can be extended in modules. We are investing because it is important for our operation as well as for other demands. How has Vale responded to calls from the government to help develop the Mozambique Stock Exchange by oating 10% of the company? R.S.: Vale, together with the government, is evaluating the possibility of selling 10% of its shares through the Mozambique Stock Exchange. However, there are other options being considered. More importantly, however, is the need to promote sustainable development. Around 85% of our manpower is hired and trained locally. Being a shareholder, an employ-

mote a system that allows us to produce our core, which is minerals, in such a way as to be able to share logistics costs with other companies fairly. Whats the projected capacity of your operations? R.S.: At present we have 11 million tons in capacity. The bottleneck is the Sena Railway and the Port of Beira. However, we are doubling our capacity at the mine to 22 million tons. The Nacala Corridor will be completed in 2014, and by 2017 we will be exporting at full capacity. In 2012 we expect to export between 2.8 million and 3 million tons, and in 2013 we will improve on that. We started construction of the Malawian portion of the NacalaTete railway in January 2012 since it is the most critical point of the whole corridor.

interview

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ee, a supplier, or a neighbor gives us the strength to overcome the challenges that society presents. How has Vale worked with Mozambican companies in Tete since 2004? R.S.: As part of the rst step of implementing activities in the country, we earmarked $1 billion to trade with local companies. We started with a very small quantity of companies, and the numbers have since been increasing. More than 500 Mozambican companies

now supply us in different ways, fullling needs for transportation, accommodation, food and beverages, and all other kinds of service support. Also, we try to promote meetings and forums with our main suppliers and contractors and their local suppliers. It is one of Vales policies to develop its local supplier network. What are your expectations for your Mozambican operations over the long term? R.S.: We are very optimistic, even though it wont be easy. Investing $6.5 billion is never an easy task, especially with the lack of infrastructure here. However, every day we are improving and we feel more condent in the future. (Find more at businessday. com)

Brief
MINING AND DEVELOPMENT:

Minerals boosting African economies World Bank


RECENT and continuing discoveries of metals, hydrocarbons and other minerals are stimulating economic activity and are set to continue to support economic growth in sub-Saharan Africa for the remainder of this year and into the future, stated the World Bank in the most recent edition of its biannual analysis of the continents economy and prospects, Africas Pulse, published on Thursday. A third of African countries will grow at or above 6% with some of the fastest-growing ones buoyed by new mineral exports such as iron-ore in Sierra Leone and uranium and oil in Niger, and by factors such as the return to peace in Cote dIvoire, as well as strong growth in countries such as Ethiopia, highlighted World Bank VP for Africa Makhtar Diop. An important indicator of how Africa is on the move is that investor interest in the region remains strong, with $31billion in foreign direct investment ows expected this year, despite difcult global conditions, he added. The global nancial institution warned that the global economy was still fragile, with a number of potential risks. However, it pointed out that commodity prices have been consistently high and those countries which have developed mining and hydrocarbon industries in recent years have experienced strong export growth. The bank afrmed that natural resources would probably retain their economic importance into the medium term in a number of established subSaharan African oil and mining countries. This mineral wealth and the economic growth it is stimulating is helping a number of African countries to achieve middle-income status, dened by the World Bank as countries which have a yearly per capita income of more than $1 000. Resource-rich African countries have to make the conscious choice to invest in better health, education and jobs, and lessen poverty for their people - it will not happen automatically when countries become rich, warned World Bank chief economist for Africa Shantayanan Devarajan. Gabon, for example, with a per capita income of $10 000 has one of the lowest child immunization rates in Africa.(Miningweekly)

Opec believed to overstate oil reserves by 70%


Analysts at a New York-based research rm believe that the Organization of the Petroleum Exporting Countries (Opecs) global oil reserve statements could be inated by as much as 70%.
GLOBAL oil prices are expected to dramatically spike from the end of the decade as a result of reserve depletion, and continue to dramatically rise into the future as a result of oil-producing countries being unable to replace reserves fast enough, research specialist Lux Research analysts told Mining Weekly Online on Thursday. Researchers said the known oil reserves of Opec members would be depleted much sooner than thought, owing to many of the member countries producing much more oil than what they could sustain over the long term. Oil, gas and mining analyst Rick Nariani said Opecs stated reserves skyrocketed from 878-billion barrels to 1.2-trillion barrels throughout the 1980s and 1990s, without any new signicant discoveries being made. With cumulative oil production of 449-billion, the true reserves for Opec could be as low as 428.94-billion, which would result in global price shocks by 2020. He explained certain Opec members were deliberately increasing their stated oil reserves to out Opec regulations, which allowed oil-producing countries to only produce oil at a rate calculated as a certain percentage of its total reserves. We now know that the numbers are signicantly inated. The model we have built from available data shows that Opec reserve statements could be overstated by as much as 70%, Nariani said.(Miningweekly)

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OIL DRILLING:

Malawi and Mozambique in talks over oil exploration in Lake Niassa


The Malawi government is consults with its counterpart from Mozambique to the enhancement of oil exploration on Lake Niassa, Minister of Energy and Mines Cassim Chilumpha in an interview.
ACCORDING to The Daily Times, Malawis government seeks to avoid diplomatic problems similar to those occurring with Tanzania, shortly after the oil exploration have begun in that lake, whose waters bathe Malawi, Mozambique and Tanzania. In the interview, the minister said that the government is being cautious in assigning new blocks to companies interested in oil exploration, since these blocks are near the border with Mozambique. When in 2010 the government announced that it would grant licenses, companies such as SureStream, Sankara, Ophir, SacOil, Tillow and Lonrho submitted proposals but, after a pre-selection to chose SureStream, Sankara and SacOil, SureStream just got a permit to oil exploration in the lake. Last September, the Director of the Department of Geological Survey, Leonard Kalindekafe, told reporters that six areas have been demarcated for oil exploration, including some in the Lake Niassa. (Macauhub)

OIL AND GAS DRILLING:

ACCORDING to the deputy minister the blocks are likely to be offered in the rst quarter of 2013. About 12 blocks will be offered, with at least three of them in the gas-rich Rovuma basin where Anadarko and Eni have made their giant discoveries, said Inocencia Maculuve, a geologist at the National Petroleum Institute (INP). Mozambiques gas sector has attracted global interest after groups led by U.S.-listed Anadarko Petroleum and Italys Eni have made discoveries of at least 130 trillion cubic feet of gas so far, enough to supply Germany, Britain, France and Italy for 13 years. INP is the regulatory authority for petroleum exploration and production in Mozambique, managing all licensing rounds and awarding of blocks. A number of companies, including Eni, Exxon Mobil, BP, Malaysias Petronas, Shell, Tullow Oil, Vitol and Noble Energy, have expressed an interest in future bidding rounds. Source:energypedianews-Reuters.

Mozambique to auction new blocks in Q1 2013


Mozambique will place in auction around 12 new exploration blocks for oil and gas early next year, said the deputy minister of mineral resources, Abdul Razak Noormahomed said on the sidelines of an energy conference India.

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ENERGY SUPPLIES AT SUBSIDIZED PRICES:

Indian government offers to build oil and chemicals products factories in the country
The government of India has offered to build factories for oil and chemicals products and fertilizers in Mozambique so long the energy supply is made at subsidized prices, an Indian ofcial said in New Delhi quoted by The Economic Times.
OUR state companies are willing to assemble urban systems of gas distribution, fertilizer plants and petroleum and chemicals products as long as the gas needed to fuel all these projects is supplied at the right price, said a source quoted by the newspaper. The ofcial spoke to the Indian newspaper after the Indian Minister of Petroleum, S. Jaipal Reddy, held talks with Mozambican Deputy Minister of Natural Resources, Abdul Razak Noormahomed on the sidelines of Petrotech 2012 conference held in New Delhi.(Macauhub)

Renewable Energies: The future cannot wait


With oil prices above $ 50 per barrel and hitting new highs almost daily, renewables energies come again to deserve the attention of all those who see in them a way to reduce humanity dependence on fossil fuels, whose reserves may run out by midcentury. Moreover, the side effects of this dependence are such that every day it becomes more urgent to nd viable alternatives.
RENEWABLES continue to be used in very small quantities, almost on a trial basis, and cannot be said that any country has already chosen one of them as the main source of energy supply for its industry, transport or electricity generation. Despite its advantages, being inexhaustible and clean, these renewable energies are not sufciently attractive from the economical point of view. The evidence is that the value of companies engaged in renewable energy has been falling in the world markets in the last two years, while that of oil skyrocketed.

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The truth is that everything that represents a certain notion of development, industries, automobiles, highways, large buildings - are all designed to depend on oil and electricity. Despite the vested interests of oil producing countries and oil companies, renewable energies are gaining ground, the point of some of them have witnessed an annual growth rate of around 20% over the last decade. In Mozambique, for example, the project Solarmz, created last year by the German Agency for International Cooperation GIZ - AMES, aims to develop a sustainable market for solar energy products in the country. It was presented to companies in the energy, trade and construction, during the seminar held in Maputo (10/17/2012). Florian Geyer, adviser to the GIZ AMES, explains that the Solarmoz project essentially provides access to modern service models in energy market, directed to small and medium Mozambican companies of the solar energy sector, and offers technical and Marketing and Sales training to these companies. And given that there are still people in Mozambique who do not have access to electricity, Geyer points to solar energy as a viable alternative for local consumption - such as lightning, and all other activities that require energy. Moreover, the conference, organized following the Summit on Sustainable Development (Johannesburg 2002), attended by representatives of 154 countries and its governments, international organizations and members of civil society, committed to promote the development of these energies. It was stated at the

time that the greater use of wind, sun, water, biomass and geoheating, will provide access to electricity to more than one billion people. Among the benets that may accrue from greater use of renewable energy include: increased security of energy supply, a lower contribution to climate change, stimulation of economic growth, creation of jobs (often in areas rural), higher incomes, poverty reduction, greater social equity and environmental protection at all levels, reads the nal document of the conference. (By Ana Gloria Lucas).

IRON ORE:

Record quarterly iron-ore output for Rio Tinto


Mining giant Rio Tinto has reported another quarterly production record for its iron-ore operations in the Pilbara, as well as a production increase at its copper, coal and bauxite operations.
WE HAVE delivered another strong set of production results in the third quarter, including record quarterly Pilbara ironore production, said CEO Tom Albanese on Tuesday. Global iron-ore production increased to 67-million tons, up 5% compared to the previous period, while year-to-date global iron-ore production was 187-million tons, up 4% on the same period in 2011. The Industry kept its full-year production guidance at 250-million tons of ironore, despite last week lowering its estimates for Chinese gross domestic product growth to just below 8%. (miningweekly).

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ENERGY:

REN can alienate 7.5% stake in Cahora Bassa in 2013


THE PORTUGUESE company Redes Energticas Nacionais (REN) admits handing over, already in 2013, 7.5% share holding in the Cahora Bassa Hydroelectric (HCB) in exchange for entry into new projects in Mozambique, said in New York, Rui Cartaxo, head of the company. REN, 25% owned by the Chinese State Grid Corporation group, concluded in July the purchase of 7.5% of the Cahora Bassa for 38 million euros, admitting to sell the shares in exchange of its participation into new energy projects in Mozambique. In a statement sent to the market in April, REN said it intended to participate in the project infrastructure of electricity transmission in Mozambique that could come by to purchase shares in companies owned directly or indirectly by the Electricity of Mozambique (EdM) This could bring the sale to EDM by REN of 7.5% of its share in the capital of HCB.

PUB.

Logistics Risc Magament Fire Systems Representation and Engeneering Services Provision

FIRE FIGHTING SYSTEMS

Prdio Cardoso Av. 25 de Setembro, N. 1123, 1st and 2nd oor, Door N. Tel.: +258 21 32 71 16 Fax: +258 21 30 09 48 PO BOX, 302 Cel: +258 84 30 66 780 / 84 27 29 471 / 82 62 34 124 +25 E-mail: prolog@prolog.co.mz Web: www.prolog.co.mz p Maputo - Mozambique

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CLEAN ENERGIES:

Environmentalists demand guarantees that biofuels do not affect food prices


The environmental associations Quercus and Oikos strengthened their appeal to the president of the European Commission to nd ways to ensure environmental and social sustainability of biofuels for transports.
ACCORDING to information released on the World Food Day, the two entities argue that several studies have demonstrated that the use of rst generation biofuels can lead to increased emissions of greenhouse gases and a worsening of food prices hikes. The increase in the price of food can lead to a new crisis of agriculture and food in the world, they warned. Environmentalists point out that over the past few months, several reports indicate the intention of the European Commission (EC) to review some aspects of the legislation to promote the use of renewable energy in transport. Under existing rules, EU countries shall ensure that, by 2020, 10% of the energy consumed in transport comes from renewable energy, explained the associations. Most Member States expect to achieve this goal through increased use of rst generation biofuels produced from agricultural crops, also often used as food, such as soy, corn, and introduced in mixtures with conventional diesel or gasoline. Quercus and Oikos say they are satised that the EC consider revising some rules, after the call of the United Nations on severing droughts, agricultural production constrains and increased demand for food. Faced with news pointing to pressures of the biofuels industry to maintain the existing system, the organizations call for Duro Barroso intervention to ensure that new legislation is based on the current state of science on indirect changes in land use related to production of these fuels. Both environmental associations highlighted the alternative of second generation biofuels, which do not compete with food PUB. production, and gave the example of those that originated in waste and biomass. For environmentalists, the measures are urgent, so to ensure the environmental and Social integrity of the directives on Renewable Energy and Fuel Quality, but also to differentiate in the market that biofuels are actually more sustainable than the pollutant diesel or gasoline.(Lusa)

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MORE TRANSPARENCY LESSONS FOR MOZAMBIQUE:

Afghanistan unveils approximately 200 mining contracts


The Ministry of Mineral Resources of Afghanistan published last Sunday about 200 contracts signed with mining companies in the country, which is an important step and an example to follow by Mozambique in improving the transparency in the extractive industry, a sector susceptible to corruption, writes Mozambican Center for Public Integrity.
AFTER several African countries, now it was Afghanistan showing its commitment to the cause of transparency not only through the implementation of the Initiative Extractive Industry Transparency Initiative (EITI), but also by publicly disclosing contracts. Shouldnt this be yet one more lesson for Mozambique which, despite implementing the EITI (and walkin towards the status of EITI compliant) is still dipped in secrecy and obscurity in the sector? On one hand, the secrecy of contracts in the extractive sector in Mozambique makes it difcult to understand the nature and scope of the agreements between the government and companies and, secondly, it undermines the effectiveness of the processes of accountability and monitoring compliance with the agreements. In Mozambique a major argument used by apologists of secrecy contracts is that its publication can scare the companies or create an atmosphere of tension between the government and companies, since the contracts contain strategic information from commercial and competitive same. This argument is again in jeopardy with the publication of contracts in Afghanistan which has added to a list of other advocates of transparency of contracts such as Liberia, Peru, East Timor, Ghana, Iraq, Democratic Republic of Congo and Niger. In these countries, there have never been reported cases of leakage of companies or an atmosphere of tension between the government and these because of publishing contracts, but the governments of these countries have created opportunities for greater trust and collaboration with civil society, thus reducing the tensions and suspicions arising from lack of information. The nal version of the Draft Law of Mines recently submitted to the Council of Ministers, in its paragraphs 3 and 4 of Article 7, propose the following: ... The mining contract is published in the Government Gazette, subject to the condentiality of strategic and competitive commercial information of the mining activity. It is understood by strategic and competitive business information from mining, all information of a commercial nature that unveiled to the public, may bring negative consequences for nancial and equity investment. The argument about the strategic business information and competitive mining activity has been used in Mozambique by staunch supporters of non-publication of contracts, given that mostly presented considerations and tax provisions, i.e., the tax system, information on the local economic development and nontechnological information, the disclosure of which is made in other documents. Contract disclosure in the countries mentioned is proof that the responsibility for transparency is a government task and not the operating companies, because some of them operating in Mozambique have their contracts published in countries where there is openness to its publication. As an example we can see the case for Anardarko, Bhp Billiton and ENI in Liberia whose contracts are in the public domain, unlike Mozambique. The Government must urgently publish extractive industry contracts (past and future) if it wishes to be recognized as creating a transparent sector, because there is no good in focusing only on EITI, given their limitations and inconsistencies with the challenges of transparency in the extractive sector. (CIP-Center for Public Integrity)

DISP. REG. N 5 GABINFO/DEC/2008

Technical Sheet
Production STATUS-Consultores de Comunicao, Lda. Address: Av. 25 de Setembro, n 1123 Prdio Cardoso Telephone.: +258 21 32 71 16/ 17 Fax: +258 21 32 71 17 Director: Inguila Sevene Editor: Aunorio Simbine Collaborators: Nelson Charifo and Alexandre Dunduro Design: Lus Filipe Tembe English Language Reviser: Paulo Pinto Email: status@status.co.mz Website: www.status.co.mz e www. energiamocambique.co.mz

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Curiosity

GRANT OF MINING CONCESSION(S)


ON SUBMISSION by the Company of a valid and complete application for a Mining Licence 946L issued in respect of the Contract Area under the terms of a certain Contract, the Minister agrees, in accordance with the times period and procedures set out in article 5 of Mining Law Regulations, the provisions of this Mining Contract and terms and procedures of the Mining Law: (a) To grant and issue to the Company a Mining Concession to undertake Mineral Exploitation for coal and Associated Minerals for the period of the life of the mine or Mining Operations, for an initial period of twenty-ve ( 25 ) Years; and (b) Renew, any number of times, any such Mining concession by the renewal period applied for but not exceed twenty ve (25) Years for each renewal, provided the Company can demonstrate all of the following: 1) Ore sufcient to indicate the continued economic viability of Mining Operations, 2) it is not In Default of any provision of the Mining Law and Mining Regulations or directives issued thereunder which constitutes grounds for suspension or revocation of the Mining Concession.

EITI BOARD DESCRIBED MOZAMBIQUE AS COMPLIANT COUNTRY


THE BOARD of Directors of the Initiative for Transparency in the Extractive Industry (EITI) announced that the organization considered Mozambique as fully compliant with the criteria and principles for the validation of a country. According to the statement issued after the meeting held on 26th, October in Lusaka, Zambia, the Board of Directors of the EITI said that Mozambique has become the sixteenth country EITI compliant and will be evaluated again within ve years, on 26th October 2017. The validation process is a mechanism for quality assurance and EITI brand protection, which evaluates the implementation of the initiative in a particular country and ranks it as a doer, with signicant progress or not a doer. The EITI is a voluntary initiative, launched in 2002, which aims to improve governance in resource-rich countries through the verication and minerals publication of company payments and government revenues collected in the sectors of oil, gas and mining. Mozambique joined on a voluntary basis, the EITI in May 2009 in order to strengthen their good governance mechanisms and has already produced two reports for reconciliation of payments and receipts from the extractive industries, the rst referring to the 2008 scal year and second to the 2009 year. The third report for 2010 is now in the process of production and publication is scheduled for next December.

THE WIND ENERGY


WE CAN say that wind power was the rst to be used by man; since the seventh century windmills were used in Persia and elementary in the twelfth century, the rst windmills appeared in Europe. Moreover, the boats powered by wind imposed its dominance in the seas. The use of wind turbines to generate electricity began in Denmark in the late nineteenth century, and it was later extended to the whole world. Today, wind energy presents itself as a renewable energy with more potential and more chances for future development, with scientists calculating that in the middle of the century, 10% of world electricity can be obtained from the wind energy generators. Ten percent is precisely the goal that the European Union intends to produce by 2030. Although expensive relatively to the required investment, wind energy is eventually produced at competitive prices and various countries outside of Europe are also interested in it. For example, Argentina which considers to have the worlds major center of wind energy in Patagonia due to the weather, is to carry out a plan to produce in the region 3000 megawatts of wind power by 2010, while China plans to have until 2005 better conditions to produce 2500 megawatts of that energy. (Ana Glria Lucas, Journalist)

e-MAIL: status@status.co.mz / status.energiamoz@status.co.mz Website: www.energiamocambique.co.mz Newsletter n 18 - 28.OUTBRO.2012

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CULTURAL EVENTS MARK 5th. ANNIVERSARY OF REVERSAL
Cultural events taking place in several Mozambican cities will mark in an unprecedented way, the fth Anniversary of the Reversal of the Cahora Bassa (HCB). The program started in September and will extend until November 27, 2012, the actual day of the anniversary of shareholder control of Cahora Bassa by the Mozambican state. On 20 September 2012, at 16:00 PM, in an joint initiative of the Cahora Bassa Hydroelectric and the AEMO Mozambican Writers Association, the Jos Craveirinha literature Prize was awarded to the writer Lydia Mompl, in recognition of her career achievements. On 30th September, at 16:00 PM, there will be the Nyau band show at FEIMA Maputo Fair of Craft, Flowers & Food and on 4 October, Peace and Reconciliation Day, a Timbila show will take place in Tete city. On 25 and 31 October and 1 November, classical music performances are scheduled. The rst will take place at the University Center of Culture and Arts of Beira city, 20:00PM. The other two concerts will take place at the Centro Cultural Universitrio Eduardo Mondlane in Maputo, also at 20:00 hours. The concerts join for the rst time ever four international recognized Mozambican performers: The soprano Stella Mendona and Sonia Mocumbi and instrumentalists Edelvina Meterula in Oboe, and Linda Paulino in the bass. These three concerts of classical music will count with the participation of The Johannesburg Festival Orchestra, conducted by Maestro Richard Cock. On 13th October 2012, at Estdio Municipal 25 de Setembro, in the city of Nampula, a friendly African light music show will be held at 15:00. The audience can expect the exhibitions of the Mozambican composers and singers Zena Bacar, Jose Mucavele, Hortncio Langa and Stewart Sukuma, meeting with Banda Nkuvu. The Nampula people can also vibrate with the performance of the Soweto String Quartet, born in the eighties in South Africa and one of the most internationally acclaimed groups. On November 10, 2012, around 18:00, several Mozambican artists will be gathered on stage for a performance on Eduardo Mondlane avenue, near the taxi rank in the city of Tete. On November 27, 2012, a great musical show from 20:00 PM in the village of Songo, which has as special guest, the Zimbabwean artist Oliver Mtukuzi. On stage names such as Mingas, Julia Duarte, Marlene, Neyma, Ziqo and Nyungwe, as well as the Mussukos, Banda Afrodisiaca and Banda Songo. On November 27, 2012, the ofcial launch of the book marking the ve years of the reversal of the Cahora Bassa and a lm on the History of Cahora Bassa. Of noted importance are the ceremonies scheduled for the 26th November, which will celebrate the hand-over from HCB to the local communities of a Maternity Center an Surgical Center, a Community Radio, a Multimedia Center and a library. All these initiatives are under HCBs social responsibility program.

Maputo, 21st September 2012

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