New projects set to drive Mozambique output

New projects set to drive Mozambique output
Published: 31 May 2011

Several cement factory projects are being launched in Mozambique, including three from Chinese companies, which will make it possible to triple cement production in the country in just two years, according to the Economist Intelligence Unit (EIU), of The Economist group.

According to the EIU in its most recent report on Mozambique, expansion of cement production capacity is intended to cover growth in demand from the construction market in Mozambique, with large mining, energy and construction projects as the main sources of demand.

The three Chinese companies plan to build plants in the province of Maputo that will start operating as of next year.

Magude is the location chosen by Africa Great Wall Cement Manufacturer for a cement plant with annual production capacity of 500,000t, costing US$78m.

The China International Fund’s plant near Salamanga, south of Maputo and costing around US$72m, is already under construction.

Estimated production stands at 800,000tpa, whilst a third unit, owned by GS Cimento, will have capacity to produce 550,000tpa.

This factory will be located in the Boane industrial park next to the Mozal aluminium factory. It is the most expensive of the three Chinese factories, and is expected to cost US$100m.

Also according to the EIU, a fourth Chinese company, Bill Wood, is interested in building a cement factory in Cheringoma district, the second of its kind in Sofala province.

Of all the planned investments, the biggest is from South Africa’s Pretoria Portland Cement, expected to cost US$200m for a plant with capacity to produce 600,000tpa of cement.

If all the projects go ahead as planned, the country’s cement production will triple by 2013, to 4Mta, according to the EIU, at a time when demand is rapidly growing.