Japan, Mozambique to Cooperate on Oil, Gas, Coal Development

Japan and Mozambique will cooperate on the development of coal, oil and natural gas in the southern African country as global competition to secure natural resources intensifies.

A memorandum of cooperation was signed today in Tokyo with Mozambique’s mineral resources ministry, the Ministry of Economy, Trade and Industry of Japan said in a statement. The agreement also covers the participation of Japanese companies in development projects, according to the statement.

Nippon Steel Corp. (5401) and Posco (005490), the largest steelmakers in Japan and South Korea, are investing in the $600 million Revuboe coking coal project in Mozambique. Coking coal and iron ore are the key raw materials used to make steel.

Eni SpA (ENI), Italy’s largest oil company, yesterday reported a second “giant” natural-gas discovery off Mozambique, near the Mamba South find that it made last year.

To contact the reporter on this story: Masumi Suga in Tokyo at msuga@bloomberg.net

To contact the editor responsible for this story: Rebecca Keenan at rkeenan5@bloomberg.net

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