Mozambique exports driven by aluminum and coal products

Mozambique’s exports are expect to increase over the next 2 years with greater sales of aluminum, coal, gas and agricultural products thus allowing for the country’s balance of trade deficit to contract in 2012.

In its latest report on Mozambique, the EIU raised its projections for exports of Mozambican products from USD 3.4 billion to USD 3.6 billion this year, benefiting from the rise in price of raw materials on the international market. Projections for Mozambique’s exports, dominated by aluminum are positive.

World demand for aluminum which in Mozambique is produced by Mozal, the country’s largest company is expected to see average growth of 5.7 percent per year over the next two years with prices rising sharply this year and falling slightly next year. Coal exports could make a significant contribution as of the end of 2011 but could be delayed due to associated infrastructure.

In May, Brazil’s Vale started production at its mine in Moatize, in Tete province and exports are due to start in July of this year and reach 1 million tonnes in this initial phase. For next year, the target for exports is 6 million tons of coal, almost doubling to 11 million by 2014.

The Moma mine, owned by Ireland’s Kenmare Resources is already operating and at the end of the year, production at the Benga mine, owned by Australia’s Riversdale Mining, is also due to begin.