Baobab Resources has played a central role in exploring and developing Mozambique’s mineral resources for the past decade. Working with its joint venture partner, the IFC, Baobab has discovered an exceptional 759Mt iron ore resource, located 50km north of the provincial capital of Tete. With strategic access to captive iron ore, low cost coal and abundant water resources, Baobab is completing a bankable feasibility study to demonstrate the commercial viability of a 500ktpa mining and steel making operation.
Domestic steel production is essential for a developing nation to be able to rapidly ‘tool-up.’ The Baobab Steel Project represents a unique opportunity to become the sole supplier to Mozambique’s, and the region’s, import-dependent steel market. The Tete province is fast emerging as an industrial and logistics hub, centrally located to support the major growth centres of the Copperbelt, Coal belt and Gas belt. Positioned IN THE MIDDLE OF IT ALL, the Baobab Steel Project will cornerstone Mozambique’s steel industry for the next 100 years, delivering robust investor returns and unprecedented socioeconomic benefits.
Steel mills anchor large-scale industrial complexes, attracting a multitude of secondary and tertiary enterprises. For this reason, Baobab has applied for an Industrial Free Zone (‘IFZ’) status for the project and is working with the government to develop an IFZ masterplan that will attract both local and international industrial players.
Baobab Steel is a game changing project for Mozambique, transforming the nation’s manufacturing capacity and mitigating dependence on imports. It is strategically aligned with the 2015 presidential manifesto and 5-year plan, which focus on industrialisation and long term job creation. By achieving full integration from resource to finished product, Baobab is ensuring that the entire value-chain remains where it belongs, in Mozambique.