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Sofala: Chinese Investors Fined Nearly 220 Thousand Dollars for Setting Up Illegal Cement Factory

Sofala: Chinese Investors Fined Nearly 220 Thousand Dollars for Setting Up Illegal Cement Factory

Chinese investors who planned to establish a cement factory in Chibabava district, Sofala province, have been fined 217,000 US dollars (14 million meticais) for starting construction works without complying with the legal procedures required to obtain an environmental license. The Government has also decided to suspend all project activities until further notice.

The decision comes after the authorities distanced themselves from the project, claiming that it failed to comply with existing regulations, particularly environmental ones. Among the irregularities identified is the lack of compensation for dozens of farming families whose land was occupied by the investors.

The investigation conducted by the authorities resulted in the imposition of a 14 million meticais fine, formally issued by the National Agency for Environmental Quality Control (AQUA) — the public institution responsible for overseeing and monitoring projects with environmental impact in Mozambique.

According to a document issued by AQUA, the Chinese company began clearing land for the construction of the cement factory without possessing the required environmental license. The operations included tree felling and soil compaction — activities that require prior authorization from the competent authorities.

AQUA also issued another document ordering the immediate shutdown of all land preparation activities. The decision covers Shun Xin Yuan Africa Investment Limitada, a private Chinese-funded company identified as the project’s promoter. The same document specifies that the ban can only be lifted once a valid environmental license is presented, accompanied by the corresponding environmental impact study or an updated environmental management plan. Until then, all activities will remain suspended.

According to local sources, the groundbreaking ceremony for the construction of the factory had been scheduled for about two weeks ago. However, the project’s progress was halted following complaints from local communities.

Representatives of Shun Xin Yuan Africa Investment Limitada have chosen not to comment on the measures imposed by the Government. The failure to comply with legal requirements and the disregard for local community rights have ultimately jeopardized this industrial project, which now faces sanctions and uncertainty regarding its future.

Source: Jornal O País

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