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Investment in Mozambique cement plants promises production height of 4 million tpa in 2013

World Cement,

With two new plants about to start operations, Mozambique is expected to reach a production capacity of approximately 4 million tpa of cement by 2013, according to the country’s Minister for Industry and Trade, Armando Inroga.

Mozambique currently has five plants, which produce around 1.3 million tpa of cement. Cimentos de Moçambique, belonging to the Cimentos de Portugal (Cimpor) group, is the biggest producer, with around 600 000 tpa. Close to the capital Maputo, the Cimentos de Moçambique plant is installing new equipment to increase production to 1 million tpa. Inroga said in a recent interview that he expects cement prices to fall as of 2013, as a result of the new plants.

Earlier in 2011, there were reports of the Mozambique government imposing price controls on Cimentos de Moçambique, which was selling 50 kg bags of cement at US$8, with resellers almost doubling the price.

Many investors, including Chinese, Portuguese and South African companies, are getting involved in the cement sector in Mozambique. Back in August 2010, reports of Chinese investment worth US$78 million into the construction of a new cement plant in the district of Magude, Southern Mozambique surfaced. The South African company Pretoria Portland Cement (PPC) announced an investment for this year of US$200 million to construct a new cement plant.

Mozambique’s Ministry for Mining Resources has been approached by prospective investors for licenses to prospect and survey for limestone and clay, essential raw materials for cement production. In its turn, Sogecoa Moçambique has asked for licenses to prospect and survey for gold in the districts of Chifunde and Gorongoza, in the provinces of Tete and Sofala respectively.

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