Logistics operators eye Moz gas opportunities

Local logistics companies are keeping a close eye on developments in Mozambique as gas finds hold the promise of significant growth potential. According to Hashim Ismail, CEO of Semwat Transport, with Australian and American mining magnates in the process of establishing themselves in Mozambique, South African companies should be monitoring the situation. “There are major opportunities for southern African service providers as these gas finds are going to change the mining landscape of the region significantly,” Ismail told FTW. And this is good news for an industry faced with low commodity prices, increased costs and a volatile labour situation. “Last year iron ore was trading at an average of around $180 per ton. Currently it is trading at around $62.30 per ton.” This he said had major knock-on effects on the industry servicing the mining sector. “And to exacerbate matters China, which consumes 70% of all seaborne iron ore produced worldwide – trading in excess of 1.3 billion tons per year – has announced plans to cut its growth target to 6-7% this year, its lowest in over ten years.” Ismail said in light of these factors the growing interest in the Mozambican gas finds was understandable. “As traditional mines work hard to minimise their overheads, control production cost and manage debt, the opportunities presented in the gas sector will make a difference to the industry.” Ismail said Semwat was also working extensively in the Botswana market where the decline in commodity prices was seemingly not halting mining ventures. “Following the signing of a joint venture between the Botswana company BCL and Allan Hochreiter in August 2014 they have announced that they will be re-treating about 100 million tons of mine tailings and 45 million tons of smelter slag at the Selebi Phikwe mine to the south of Francistown to recover nickel, copper and cobalt. Semwat has already delivered some machinery over the past few weeks to this site and we expect to be doing more in the near future.” INSERT & CAPTION We are working extensively in the Botswana market where the decline in commodity prices is seemingly not halting mining ventures. – Hashim Ismail