For many countries, the industry of fossil fuels has been what has kept their respective economies alive. The coal industry, for example, is what the African nation of Mozambique has needed.
The coal industry, which was once booming for Mozambique, however has seen its coal rush now sadly come to an end. It was only a few years ago that the country had made tons of money due to the immense wealth of inland coal and natural offshore gas, billions of dollars pumped into the economy to be exact.
Now, according to an analyst named Kenneth Griffin at a coal conference in Maputo, the coal rush is over, mainly because of lower prices, unusually high expectations from the industry and being transported around in an outdated and inadequate rail system. However, in spite of the coal industry losing money and being very costly, the natural gas industry is what is starting to make a good run here. Specifically, industries are now looking at gas that can be found offshore.
Despite this, several coal mining permits have been issued, regarding the transportation of coal from the Tete Province in Mozambique to Johannesburg, South Africa though only 11 mining concessions have actually been approved. This is due to the fact that only a handful of companies have the funds necessary to do such projects, one of which is a Brazilian mining company called Vale, which has an advantage due to having some cultural ties with Mozambique.