article..a giant in the making..

Tete: A giant in the making

By Fred Katerere

Tete. — Mozambique’s north-western province of Tete could be a giant waking up from a deep slumber and is set to rise above the economic shoulders of Maputo.

The rise from the ashes is thanks to mega investments by companies like Australian Securities Exchange-listed coal giant Riversdale, one of the lifelines of the province that was paralysed by 16 years of civil war which has been termed "a war of destabilisation".

"There is lots of coal here in Tete and it will meet the international steel industry’s demand for coking coal," says Syd Parkhouse, Riversdale’s Mozambique manager with over a dozen years experience in coal mining.

As an ASX 100 company, Riversdale has already invested significantly in the region.

By the time feasibility or planning stages are brought to completion and projects developed, the company, in conjunction with its joint venture partner Tata Steel, will have committed well over a billion Australian dollars towards building the Moatize coking and thermal coal projects, in the Tete area alone.

This is an area which already has an inferred coal resource of 1.9 billion tonnes, and amazingly, this area represents less than 3 percent of the company’s total holdings in Mozambique of over 290 000 hectares.

Parkhouse added that his company was not only looking at "transforming" Tete’s economic landscape but also the social aspect by investing in several projects that would benefit communities living near the mine.

"We have engaged a company that would carry out a social and environment impact assessment study. This is important for us to ensure we recognise the needs and the livelihood of the communities in which we live and operate. The local community at Tete has been engaged from day one," he said, adding, "For example, if there is a need for some people to move, we will ensure better houses would be built for the people who will be looking to be relocated."

More than 30 000 people are living near sites where Riversdale has acquired a mining licence and the company hopes that it will have the chance to get many involved either directly or indirectly as the various projects progress.

In fact, the full economic impact of any future mine will be as profound for related services and industries in Tete as it will be for those working at the mine.

Riversdale’s presence in the area has already regenerated hopes of economic recovery to residents of Tete who last saw the boom of the town before independence from Portugal in 1975.

Inacio Antonio (55) used to work for Mozambican railway and ports company Caminho de Ferro de Mocambique as an office assistant but lost his job in 1983 when the Sena railway lines were closed.