Maputo, Mozambique – Key players in Mozambique’s extractive and natural gas sectors are increasingly alarmed by the escalating post-election crisis and the violent suppression of anti-FRELIMO protests. Over the past two months, more than 50 demonstrations have been recorded across provinces, with hotspots in Cabo Delgado and Nampula, according to local human rights organisations.
Companies linked to the ruling party’s economic interests have become frequent targets of these protests.
AfricaHeadline Reports Team
editorial@africaheadline.com
Montepuez Ruby Mining (Montepuez): The world’s largest ruby exporter, responsible for 80% of global production. In 2023, the company generated revenues of approximately $900 million, but rising security threats now jeopardise its operations.
Vulcan Minerals (Moatize): A major coal mining operator, which exported around 11 million tonnes last year. The company faces criticism for its environmental impact and association with government-backed mega-projects.
Moma Mineral Sands (Kenmare, Nampula): A leading producer of ilmenite, critical for titanium pigment manufacturing. The firm reported $550 million in revenues in 2023 but is now contending with logistical disruptions caused by unrest.
Syrah Resources (Balama): One of the world’s largest graphite producers, essential for electric vehicle batteries. The company produced 350,000 tonnes in 2023 but is experiencing operational delays due to insecurity in Cabo Delgado.
Experts highlight that the perception of these companies’ ties to FRELIMO has intensified public backlash, impacting their reputation and operations. Reports suggest that protests in the last quarter alone have resulted in estimated losses of $120 million for the extractive sector.
This crisis poses a significant threat to Mozambique’s economic diversification efforts and discourages potential investment.
According to the Bank of Mozambique, the extractive sector accounted for 14% of GDP in 2023, contributing over $3 billion in exports. However, with the current instability, growth projections for 2024, initially set at 5%, have been revised down to 3.5%.
The situation calls for a coordinated response from both the government and private sector to address the growing social and economic challenges.
Analysts warn that without a diplomatic resolution to the crisis, the damage to Mozambique’s extractive industries and overall economy could become irreparable.
