"Really interesting to see an apparently low-key announcement which subtly says so much"
Low-key announcement I hope you are not suggesting a trading halt should have been made for this announcement?
I was more interested in considering the implications of these words.....
"As part of the Board proceedings directors and management also took the opportunity to meet with of Government officials and potential private sector partners to discuss the Balama Project and its significance for the Mozambican economy"
Not sure if you have been following commentary with regard to recent changes in the Mining & Petroleum laws that require "local content" obligations, and how that is occurring in the oil & gas sector? .......
"the risks of corruption in the extractive sector have significantly increased as a result of the sector laws on Mining and Petroleum passed by Parliament in 2014. In both cases, these laws expand what are known as "local content" obligations. Specifically, companies providing services to extractive sector operations must be associated with Mozambican companies (Article 41 of Petroleum Law and Article 34 of Mining Law)."
It's got me wondering who these "private sector partners" will turn out to be? If they are anything like what is suggested in this article (below) then those "private sector partners" are NOT that "private" only in that they appear to be "private companies" belonging to several current/past government officials and even a daughter (last para Valentina Guebuza)....I posted it previously under the Graphite thread, but since the subject has come up in this annoucement, it's relevant here...............
And a look into who (in Frelimo) owns what in the extractive industry - I have put it through google translate (see below) - it's a bit rough but you get the gist and an understanding what's at stake.
There is a new standard in ' rent-seeking ' the nomenclature of the Frelimo party : the establishment of firms to provide services in the extractive industry , focusing on the oil and gas sector . Is that while the large eastern and western multinational companies compete for oil and gas concessions in Mozambique , the nomenclature is positioned strategically to capture the non-core businesses , particularly the provision of services to multinationals.
The main sectors covered include the storage and transportation of gas, construction and real estate services, whether under the resettlement, either in the provision of accommodation for companies, as well as in the security sector. Monitoring the business of naming drives, made by CIP by Business Interests Base, brings some examples: The Conjane Limited which they own the agriculture minister, José Pacheco, the Mayor of Maputo, David Simango and the former Minister of Public Works and Housing, Felicio Zacarias, increased its interest in the extractive sector through the setting up of Regius Diamonds Limited and Mavui Diamonds Limited. In fact, Conjane Limited had interests in the extractive sector by Afriminerals and Mozvest Mining.
The environment minister, Abreu also expanded its interests in the mining sector, through the creation of Vindigo firm, SA that its purpose is to provide services in mining, oil and natural gas. The South East SA another firm that is part of the Minister's portfolio, which is also a member of the Frelimo party policy committee, established a partnership with a Chinese firm and created the Orient Africa Resources Co., Limited which holds interests in the extractive sector.
Josina Machel Ziyaya and some members of the family first President of the Republic of Mozambique, Samora Moises Machel, juntaramse to a French investor creating Siyana Minerals Company, Lda.
Also in this sector, Jovita Sumbana Machel, wife of Samora Machel Jr., created Nyezi the company, which aims to operate in the areas of import, storage and distribution of petroleum products in Mozambique.
The Sumbana family created the company Galana Distribution Mozambique, SA whose main activities, production, refining, distribution of oil and chemicals. This firm is a subsidiary of Galana Mo- terminals çambique, a company linked to Sumbana family, created in 2010 and whose purpose is the transportation, marketing and distribution internal tion of oil and chemicals, storage, handling and logistics petroleum and chemical products and any of its derivatives and all kinds of oils.
A top figures group Frelimo party , among which stand out the General Alberto Chipande , Raimundo Pachinuapa , Lagos Lidimo , the former finance minister , Abdul Magid Osman and the lawyer Mohamed Abdul Carimo Issá , created at the beginning of the year the Quionga firm Energia, SA whose purpose is the storage and transportation of gas.
The former minister of mineral resources , the environment of former Minister John Kachamila and his son Roberto Kachamila allied with Chinese investors and created last March , the company CM Kingjee Real Estate Limited , whose corporate purpose construction and real estate services . Roberto Kachamila also established a partnership with the Chinese company China Hope Enterprise to carry out the plan to build 92400 homes that will be built with funding from the government çambicano moment .
Even in the real estate sector , Samora Machel Jr. and his partner Louis Mucabi Jr. , created a firm Real estate called Mumaca Limited . Recently, these partners created another company in the real estate sector, Luwamgu ,Limited . The real estate sector also attracted Eduardo Mondlane Jr. who joined his just-heat Rui Chamusso and created the Signature GroupReal Estate and Signature Property Group ,Lda . Before , Eduardo Mondlane Jr. had created a company of import / export , called Project Materials Mozambique .
The minister of former combatants, Matthew Oscar Kida , and a group of partners , among which highlights the figure of Lino Joaquim Hama , created the Gugumira Security Services firm , company operating in the security sector. It is Sumbana noted that the family by the holder of youth and sports folder , Fernando Sumbana Jr. , and the Minister in the Presidency for the Civil House Affairs, António Correia Fernandes Sumbana , among other family members , Mozsecur's created the company, which also operates in the security sector The Intelec Holding, a company that has as a of the partners President of the Republic, Armando Guebuza, through its subsidiaries Electro South and Electrotec, SA created the company Electrotec Engineering, whose corporate purpose all kinds of engineering works.
Valentina Guebuza and José Eduardo Dai, through the firm in which they are partners, Teiko, Limitedacquired 30% of the share capital of the company Diver-Tech that performs underwater work to shipping companies and industry. José Eduardo Dai, through its Trust Holding Company, Limited along with its Portuguese partners,created the Rodoviá- Signaling firm laughed at Mozambique. Sergio Pantie, member of the political committee of the Frelimo party, which has diverse interests in the extractive sector, acquired stakes in Misselo Management and Development Company, that has as its object the business management, financial audits, human resources and rural development. The Center for Public Integrity will continue to monitoring and mapping, through its database, business interests of the political elite national and, above all, observe the performance these companies in the national economy
SYR Price at posting:
$4.45 Sentiment: None Disclosure: Not Held
I hope you are not suggesting a trading halt should have been made for this announcement?
(20min delay)
