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Government Forecasts 15% Growth in Coal Production in 2026

Government Forecasts 15% Growth in Coal Production in 2026

The Government estimates that mineral coal production in Mozambique will reach a new high in 2026, surpassing 22 million tons. This projection represents a 15% increase compared to the expected output for this year and comes in a context marked by the gradual recovery of coal activity, following constraints observed between 2023 and 2025.

According to Lusa, the data are included in the supporting documents for the 2026 Economic and Social Plan and State Budget (PESOE), currently under review by the Assembly of the Republic.

Projections indicate that the country expects to produce 9.3 million tons of coking coal, intended for the steel industry, and 13.1 million tons of thermal coal, used for power generation, both with an estimated growth of 15%.

The Government acknowledges that this growth will be linked to improvements in the processing plants of coal companies operating in Tete, although it recognizes that international coal prices may slightly decline due to increased use of clean energy in the global market.

The plan also recalls the recent trajectory of the sector: 14.8 million tons produced in 2022, 14.9 million in 2023, 16.3 million in 2024, and a forecast of 19 million in 2025, confirming a growth trend after three years of operational restrictions. Coal production in the country is dominated by the Indian company Vulcan, which operates mines in Moatize, Tete province. In the last three years alone, Vulcan has produced over 35 million tons after acquiring the assets of the Brazilian company Vale in 2022, including the Moatize mine and the Nacala Logistics Corridor railway network.

Despite coal’s historical role as the main export product, national production saw a significant change this year. In the first quarter of 2025, natural gas overtook coal in external sales, reaching 36 billion meticais (USD 567.7 million), higher than coal, which fell to 19.1 billion meticais (USD 300.8 million).

This drop was attributed to temporary mine shutdowns, railway disruptions caused by adverse weather, and post-election blockages that affected worker mobility and product transportation.

The official report also notes that aluminum surpassed coal in that period, reaching 24.2 billion meticais (USD 380.7 million) in exports, driven by an almost 90% increase in the average international market price.

With the new targets and ongoing industrial recovery, the Government expects coal to continue playing a central role in the economy, even in a scenario of global transformation in the energy sector.

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Source: Diário Económico

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