Mozambique has the world’s largest tantalite reserves and ranks 12th in proven natural gas deposits, with about 100 trillion cubic feet located in the Rovuma Basin.
The country also has major coal deposits, hydropower from the Cahora Bassa Dam, and untapped oil potential. Key metals include iron ore and titanium, alongside agricultural exports like sugar and cotton.
However, infrastructure gaps and governance issues limit sustainable resource development. Recent progress in LNG positions Mozambique as an emerging global energy player, with coal output also set to grow.
Mozambique’s Natural Resources And Their Locations
Here are the resources that have been discovered in Mozambique, including their locations:
| Natural Resources | Locations |
|---|---|
| Natural Gas | Rovuma Basin, Cabo Delgado Province |
| Coal | Tete Province, Moatize Basin |
| Tantalite | Marropino Mine and Morrua Mine |
| Gold | Manica Province |
| Graphite | Balama District, Cabo Delgado Province |
| Bauxite | Montepuez District, Cabo Delgado Province |
| Titanium | Moma District, Nampula Province |
| Hydropower | Cahora Bassa Dam, Zambezi Valley |
| Marble | Namacurra District |
| Limestone | Sofala Province |
| Beaches and Coral Reefs | Quirimbas Islands and Bazaruto Archipelago, Inhambane Province |
Mozambique’s Natural Resource Discoveries
Mozambique’s role in the Indian Ocean trade began in the 9th century, with gold and ivory flowing through ports like Sofala and Mozambique Island.
The Kingdoms of Zimbabwe and Mutapa supplied most of the gold, which moved along the coast via established trade routes.
Portuguese explorers reached Mozambique in 1498, initiating European control over trade and mining. By the 1500s, they dominated major ports and began pursuing gold inland.
In 2008, ruby deposits were identified in M’sawize, Niassa Province, but were soon traced to Montepuez in 2009. This led to the founding of Montepuez Ruby Mining Company in 2011. Gemfields started operations in 2012, turning the site into one of the largest ruby producers globally.
The Moatize Basin in Tete Province contains vast coal reserves. Brazilian firm Vale boosted production, with early estimates showing 25 million tons of proven reserves and 17 million tons of thermal coking coal.
In 2017 alone, Vale extracted around 10 million metric tons. Natural gas discoveries off Cabo Delgado’s coast changed Mozambique’s energy prospects.
In 2010 and 2011, Anadarko and Eni uncovered around 150 trillion cubic feet of recoverable reserves in the Rovuma Basin.
Additional finds in Areas 1 and 4 by Eni and ExxonMobil strengthened Mozambique’s LNG potential. In 2019, TotalEnergies secured $19 billion to develop the Mozambique LNG Project.
Other key resources include titanium, graphite, and tantalite. The Moma District produces up to 800,000 tons of ilmenite annually, while Balama in Cabo Delgado has major graphite reserves, essential for battery production. Mozambique also possesses what may be the largest known tantalite reserves.
Viability Of Mozambique’s Natural Resources
Mozambique’s underdeveloped infrastructure is a key constraint to resource exploitation. In 2014, the country ranked 126th out of 160 in the World Economic Forum’s global infrastructure index. Still, over $20 billion in port, pipeline, and rail projects are planned to support coal and natural gas exports.
1. Energy Infrastructure
The Cahora Bassa Dam supplies most of the country’s electricity, with much exported to South Africa. However, domestic energy infrastructure is limited. Planned projects may boost capacity to 16GW within a decade.
2. Economic Viability
Tete Province has an estimated three billion tonnes of coal, mainly in the Moatize Basin. Extraction is costly due to high operational expenses and limited processing capacity.
Mozambique also has over 160 Tcf of natural gas, ranking fourth globally. The $19 billion Mozambique LNG project, funded in 2019, aims to unlock this potential.
3. Environmental And Social Viability
Mining and energy projects raise environmental concerns, including deforestation and water pollution. A 2012 report estimated that degradation may cost up to 50% of GDP annually.
Programs like the Integrated Landscape Management Portfolio (ILM) help communities manage resources and improve livelihoods through training and finance.
Also, projects such as Anadarko’s $25–30 billion LNG park show growing foreign interest. Yet, high loan interest rates for imported equipment limit domestic investment. Key sectors include power, mining, transport, and oil and gas.
Export Potential Of Mozambique’s Natural Resources
| Natural Resources | Current Export Volume | Primary Markets | Projected Growth (2025–2030) |
|---|---|---|---|
| Natural Gas (LNG) | 3.96 billion m³/year | South Africa, Asia | +50% with new LNG facilities |
| Coal | 10 million tons/year | India, China | +25% with improved infrastructure |
| Aluminum | 500,000 tons/year | Europe | Stable |
| Titanium Sands | 800,000 tons/year | Global | +10% |
| Rubies | World’s largest producer | Global | Stable |
1. Major Exportable Resources
Mozambique is a key exporter of natural gas, coal, aluminum, titanium sands, and gemstones. The Rovuma Basin has over 160 trillion cubic feet of natural gas, making Mozambique a major LNG hub.
The Mozambique LNG project, led by TotalEnergies, targets 12.9 million tonnes per annum and secured $19 billion in funding, one of Africa’s largest foreign investments. In Tete Province, coal production continues despite logistical challenges.
Mozambique exported around 10 million tons in 2020 to India and China, with infrastructure improvements underway to boost capacity.
The Mozal aluminum smelter in Maputo produces over 500,000 tons annually, largely for European markets. The Moma Titanium Sands Project in Nampula yields 800,000 tons of ilmenite per year.
2. Key Export Markets
Mozambique exports LNG mainly to Asia, especially China and Japan, with South Africa also relying on it for power. Coal exports are driven by demand from India and China, though competition from other regions is a challenge.
Aluminum is shipped mainly to Europe, with companies like Norsk Hydro and Alcan among key buyers. Titanium sands feed global industries in aerospace and construction.
Economic Impact Of Mozambique’s Natural Resources
Mozambique’s natural resources contribute to its economy, impacting GDP growth, job creation, and foreign investment.
1. Contribution To GDP And Economic Growth
The discovery of substantial natural gas reserves in the Rovuma Basin has made Mozambique a rising LNG exporter. Projections suggest annual GDP growth could reach 8–10% starting in 2023. LNG exports are expected to generate up to $7.4 billion annually.
Coal production in Tete Province also contributes to GDP through exports worth hundreds of millions, though this sector faces hurdles like price volatility and logistical issues.
2. Job Creation
The natural resource sector provides direct employment for thousands of Mozambicans, particularly in mining, extraction, and processing.
For example, the Mozal aluminum smelter in Maputo Province directly employs over 1,300 people. Indirectly, the sector supports tens of thousands of jobs in construction, services, and logistics.
Moreover, natural resource discoveries have driven substantial foreign direct investment, with inflows rising by 58% after major LNG discoveries. Over $50 billion is earmarked for LNG projects.