19 Apr Interview with H.E. Carlos Joaquim Zacarias, Minister of Mineral Resources and Energy, Mozambique
Could you please share the main priorities and challenges your ministry is currently facing? Additionally, what is your plan to effectively tackle them?
Our ministry, the Ministry of Mineral Resources and Energy, operates on two pivotal fronts. Firstly, the mining sector holds immense significance, particularly considering our nation’s abundance of vital minerals, including those deemed ‘mining critical.’ This becomes even more crucial in the current phase of energy transition. Moreover, numerous companies within this sector are undertaking pivotal work. Addressing the challenges within this sphere, especially concerning small-scale mining activities, some of which are unfortunately operating illegally, stands as a primary priority for our ministry.
Secondly, the energy sector is equally significant, with a substantial focus on our country’s natural gas potential. We are actively engaged in structuring numerous projects that are pivotal for our nation’s development. Additionally, our country boasts substantial potential in electricity production, further emphasizing the importance of this sector.
Could you provide insights into the investment opportunities available in the country for American investors?
For American investors, there are numerous opportunities to engage with our ministry and the broader economic landscape of Mozambique. In the natural gas sector, we have a significant presence of engineering, procurement and construction companies, many of which have direct or indirect links to the United States. In the arena of project financing, it is important to note that American entities hold a significant position in supporting our business endeavors. Their contributions are vital to the success of our ventures.
Regarding mining, while direct American involvement may vary, many American companies are aware of the vast potential in Mozambique, particularly in graphite, heavy sands and critical minerals. We maintain close communication with American authorities through our embassy and various missions.
In the energy sector, we welcome American investment across various fronts. Opportunities abound in electricity generation, transportation, distribution and renewable energies such as solar and wind power. Leveraging the extensive expertise accumulated by the United States in these areas will undoubtedly benefit our nation’s development.
What incentives does Mozambique currently provide to attract and support these investments?
In Mozambique, incentives are provided through the Agência de Promoção de Investimentos e Exportações (APIEX) our national investment agency. These incentives are available across various sectors, including natural gas, hydrocarbons and energy generation. Specific tax incentives are also accessible through APIEX, enabling investors to explore opportunities in these areas.
Could you provide some insights into the Gas & Energy Summit & Exhibition scheduled for November in Mozambique? What are the main goals and expectations for this event?
Following the discovery of significant natural gas resources, we’ve been committed to attracting and engaging investors in Mozambique. One of our key strategies has been to organize thematic exhibitions focusing on various sectors. For the mining resources and energy sectors, we’ve particularly emphasized and maintained this initiative, culminating in the upcoming Gas & Energy Summit & Exhibition in Mozambique. We expect that this event will draw substantial attendance and interest. We are eager to collaborate with investors and agencies from the United States to facilitate the participation of companies that may have direct or indirect interests in our country’s energy and mining sectors.
Recognizing the significance of sustainability, especially in the context of mining and related activities, what proactive steps is your ministry implementing to minimize their adverse impacts?
Ensuring viability and sustainability forms the cornerstone of our approach. We prioritize initiatives that uphold environmental integrity and ensure the safety of all individuals involved. Sustainability isn’t just a checkbox; it’s a crucial factor that can determine the approval or rejection of projects. However, we acknowledge the diverse landscape we operate in. While formal mining operations adhere to established standards, informal small-scale mining poses significant challenges. These unregulated activities often result in adverse environmental impacts and jeopardize community health. Consequently, fostering sustainable mining practices is a paramount challenge for Mozambique, one that we are steadfastly committed to addressing.
Could you share a final message for American investors considering opportunities in Mozambique?
I would emphasize the importance of considering investment opportunities in Mozambique for American investors. Mozambique boasts immense potential across various sectors such as mining, energy and natural gas, among others. As we navigate a global energy transition, this transition must be equitable. Take, for instance, our significant graphite reserves. With one of the largest reserves globally, Mozambique can play a pivotal role in battery production, a project already underway in the United States. We urge American investors to explore opportunities here, not only to accelerate the energy transition but also to ensure it unfolds sustainably.