The Mozambican government has granted concession to China’s Kingho Mozambique, a mining company. The agreement, spanning 25-years, will allow Kingho Mozambique to mine in the Moatize district of Mozambique’s Tete province.
Esperanca Bias, the Mozambican Natural Resources Minister, said the government provided the grant due to the capacity the company found during their prospection and survey of the area as part of the company’s project.
Around 80% of shareholders of Kingho Mozambique are from China’s Kingho Investment Corporation. The remaining shares belong to the Empresa Mocambicana de Exploracao Mineira (EMEM) and Monte Binga.
Kingho Mozambique has been in operation for nearly four years. It began prospecting coal in Mozambique. Its company stakeholder, Kingho Investment Corporation, had called upon mining companies overseas to prospect in Mozambique’s potential mining sites as well.
The company will soon design and finance the installation of processing equipment in Moatize in the province of Tete by the following year.
Esperanca Bias said that the government was happy with the concession, and these may be the first of several areas that may be granted to the Chinese mining company.