663The Mineral Industry of 
Mózambic~ue 
By Miller W.Ellis' 
 
 
 Mozambique's mineral industry has left an incomplete record since the Government
of the People's Republic of Mozambique (GPRM) became independant from'Portugal
in 1975. Because most of the expatriate population had departed before the
new government took over, it was necessary to call on technical experts from
the Eastern European countries to set up new governmental departments. These
officials were expected to supervise research work, to train all staff, and
to produce mineral commodities. The economic directives of the third Frelimo
Party Congress of February 1977 contained regulations intended to insure
that the economic community would not stagnate. Property left for 90 days
reverted to the state without compensation. Businessea were taken over by
the workers or operated by a state-appointed administrative committee. Basjc
commodities were procured and distributed by state agencies whièh
replaced retail shops in some areas. Major industries were supervised by
the Council of Ministers, and most of the banks were nationalized with compensation
promised, as were the larger mines and the oil refinery. The nationalization
of a Mozambican firm producing galvanized roofing and pipe, and of four mining
companies including a potential fluorspar producer, was announced in August
1979. The Mozambique Glass Company, which operated in the Matola industrial
district of Maputo and had recently installed a new furnace, was nationalized
in October 1979. 
 In 1978 the Republic of South Africa fmally abandoned its fixed price per
troy ounce for gold (equal to $42) in favor of the world market price. This
substantially reduced the amount of gold paid to Mozambique and other neighboring
countries as 
deferred wages and benefits for their emigrant nationals employed in South
Africa's mines. Mozambique's loss of revenue was estimated at about $100
million.. In 1977 Mozainbique's chief port of Mar%uto (formerly Lourenco
Marques) handled nearly 12 million tons of export freight Of which 6 milliOn
tons were from the Republic of South Africa. In mid-1978 the GPRM negotiated
an agreement providing for the Republic to double its exports through Maputo
by 1985. In order to provide inëreased facilities Mozambique borrowed
a number of South African Railway's locomotives, arranged to purchase other
locomotives as well as forklift trucks, and was to build a second coal loading
facility to handle the output o~ a new mine in the northern Transvaal. The
railroad on both sides of the border was equipped withrcentralized traffic
controls, heavier rail, and additional ballast in order to carry two to three
times the ampunt of fr~ight toMaputo. 
 A 35-member delegation from the German Democratic Republic arrived in Mozambique
on July 4, 1978, and subsequently signed agreements to assist with minéial
exploration, supervise coal and metal mining, and build textile and truck
factories and high-tension powerlines. They undertook to provide technical
assistance in tgqlmaking, metallurgy, agriculture, and fishing, and to train
Mozambicans technically. 
 In July 1979 a Mozambican trade delegation visited Brazil to cement economic
ties between the two countries, and to negotiate with Petróleo
Brasileiro
S.L (PETROBRAS) for petroleum research in Mozambique. The following month
a large delegation from SiderCirgica Brasileira S.A. (SIDERBRAS) commenced
investigating the use of