Raising Mozambique: Development Through Coal

This policy briefing examines the impact of the coal mining boom in Mozambique, specifically in Tete province. It analyzes the role of multinational corporations like Vale, Rio Tinto, and Jindal Steel, the challenges of rapid infrastructure growth, and the effectiveness of corporate social responsibility (CSR) initiatives in promoting local development.

• Mozambique is the second-largest coal exporter in Africa, following South Africa. Coal production reached 35,700 tonnes in 2010 and was projected to hit 20 million tonnes by 2015, with coal representing 61% of the country's mineral commodities.
• Tete province contains significant coal reserves in the Moatize and Mucanha–Vuzi basins, which could potentially produce 25% of the world's coking coal by 2025 and generate $1.5 billion in annual revenue.
• Major international firms hold significant concessions in Tete: Vale built a $1.3 billion mine in Moatize; Rio Tinto holds 290,000 hectares for the Benga and Zambezi projects; and Jindal Steel is constructing a $200 million mine in Marara, Cahora Bassa.
• Rapid mining growth has overwhelmed Tete province's infrastructure and local government capacity. This has led to coordination failures among government departments and issues with population relocations, where companies sometimes built infrastructure without necessary consultations.
• Transparency remains a significant challenge; despite being signatories to the Extractive Industry Transparency Initiative (EITI), mining contracts are kept secret, preventing civil society from monitoring social commitments.
• Local employment in Tete is limited by a lack of skilled technicians, forcing companies to import labor from other countries or major Mozambican cities. While companies have partnered with universities for training, civil society notes that major procurement contracts often go to foreign firms rather than local ones.
• A large portion of corporate social spending is dedicated to relocation costs rather than voluntary CSR. For example, Vale spent $30 million on relocations between 2006 and 2011, and Rio Tinto attributes 95% of its social spending to the resettlement process.

APA

Besharati, N. A. (2012). Raising Mozambique: Development Through Coal. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2012/10/Policy-Briefing-56.pdf

Chicago

Besharati, Neissan Alessandro. Raising Mozambique: Development Through Coal. South African Institute of International Affairs, 2012. https://saiia.org.za/wp-content/uploads/2012/10/Policy-Briefing-56.pdf.

Wikipedia

{{cite report |last1=Besharati |first1=Neissan Alessandro |title=Raising Mozambique: Development Through Coal |publisher=South African Institute of International Affairs |date=September 2012 |url=https://saiia.org.za/wp-content/uploads/2012/10/Policy-Briefing-56.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{besharati2012raising, author = {Besharati, Neissan Alessandro}, title = {{Raising Mozambique: Development Through Coal}}, institution = {South African Institute of International Affairs}, year = {2012}, month = sep, url = {https://saiia.org.za/wp-content/uploads/2012/10/Policy-Briefing-56.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }