Japan on Track with Projects in International Rush for Mozambique's Resources

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Japan is keeping up with other major international players in fostering a good working relationship with Mozambique, which hosts rich mineral and energy resources. The Japanese International Cooperation Agency (JICA) is planning a number of development projects in the country over the next five years. For related information, see February 24, 2012, article - Mozambique Builds Power Infrastructure for Resource-Led Development.

Tsuneo Kurokawa, the vice president of JICA, said during a meeting in Tokyo with Mozambican Prime Minister Aires Ali and members of the Sub-Saharan Africa Commission of Keidanren, which is the Japanese employers' organization, that under the terms of Japan's Fourth Plan of Action for Cooperation with Africa (Ticad IV), Japan planned to support the development of Maputo and Nacala corridors, with a particular focus on energy, by 2016.

The agency will draw up a development strategy for the Nacala corridor and will fund work on the Nampula/Cuamba and Cuamba/Lichinga road. It also will supply water and sanitation, as well as improve educational and training facilities.

Kurokawa said that besides developing energy projects in Mozambique, Japan was interested in the human resources, industrial, infrastructure, construction and agricultural development sectors.

During his visit to Japan, the Ali met with his counterpart, Yoshihiko Noda, and was received by the chairmen of Mitsui (Tokyo) and Nippon Steel Corporation (TYO:5401) (Tokyo), as both companies have interests in Mozambique.

Vale S.A. (NYSE:VALE) (Rio de Janeiro, Brazil) is planning to invest $4.4 billion to build a coal terminal at Nacala and a 912-kilometer rail line to feed it with construction that is due to start this year. The terminal is expected to have an annual capacity of 25 million tons of coal, with an initial capacity of 18 million tons.

Japan is conducting a feasibility study on improving the capacity and operation of Nacala, including coal terminals, but there has been no confirmation that Tokyo will assist in the funding of the port development.

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