VZCZCXRO8898
RR RUEHDU RUEHMR RUEHRN
DE RUEHTO #1399 3331400
ZNY CCCCC ZZH
R 291400Z NOV 07
FM AMEMBASSY MAPUTO
TO RUEHC/SECSTATE WASHDC 8258
INFO RUCNSAD/SOUTHERN AFRICAN DEVELOPMENT COMMUNITY
RUEHLO/AMEMBASSY LONDON 0089
RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHINGTON DC
RHEBAAA/DOE WASHDC

C O N F I D E N T I A L MAPUTO 001399 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 11/28/2017 
TAGS: EMIN EPET EINV KNNP SENV KRAD ENRG MZ
SUBJECT: RESOURCES MINISTER ON URANIUM, EITI, INVESTMENT 
 
Classified By: Charge d'Affaires Todd C. Chapman, Reasons 1.4(b) & (d) 
 
¶1.  (C) SUMMARY:  The Minister of Mineral Resources Esperanca 
Bias told the Charge on 11/21 that the GRM isn't interested 
in participating in the Extractive Industries Transparency 
Initiative (EITI) since she believes that the laws and 
oversight mechanisms that the GRM has in place already 
achieve the same goals as EITI.  Bias welcomed rapidly 
increasing U.S. investment in petroleum exploration, and she 
asked for USG support and expertise as her ministry develops 
a regulatory regime for radioactive minerals like uranium. 
We do not share the Minister's optimism on the strength of 
the GRM's laws and will continue to press for Mozambican 
participation in EITI.  The Minister's mention of uranium 
suggests that the GRM believes that radioactive minerals may 
exist in Mozambique in larger quantities than are currently 
known, and the Embassy will coordinate closely with 
Washington agencies to support strong GRM oversight in this 
area.  END SUMMARY. 
 
------------------------- 
Welcoming U.S. Investment 
------------------------- 
 
¶2.  (C)  The Charge, pol/econ chief, and econoff paid a 
courtesy call to the Minister of Mineral Resources, Esperanca 
Bias on 11/21.  The Charge observed that U.S. companies 
increasingly view Mozambique as an attractive place to 
invest, especially in natural resources.  He noted that 
Houston-based Anadarko was confident that Northern Mozambique 
had significant potential for oil and gas, and was quickly 
ramping up operations in the country.  He pointed to St. 
Louis-based Peabody Energy's potential investment in the 
Moatize coal region, and other U.S. firms' interest in 
exploration in gold and other metals.  The Minister welcomed 
these companies, saying that U.S. investment was more 
sustainable and better for Mozambique than that of some other 
countries, and noted that she had visited Anadarko facilities 
in Texas and the Gulf of Mexico twice. 
 
------------------- 
No Interest in EITI 
------------------- 
 
¶3.  (C) Given Mozambique's potential in the sector, the 
Charge urged the Minister to consider Mozambique's 
participation in EITI, which could help the government manage 
financial windfalls responsibly while avoiding the problems 
of corruption that had befallen other resource-rich countries 
in Africa.  The Minister responded that in her opinion, EITI 
was for countries that were only just now drafting regulatory 
regimes for minerals and hydrocarbons, and since the laws and 
oversight mechanisms that the GRM has in place already 
achieve the same goals as EITI, the initiative was 
unnecessary for Mozambique. 
 
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Help Needed to Control Radioactive Minerals 
------------------------------------------- 
 
¶4.  (C) When the Charge asked if there were areas in which 
the USG could be of assistance, the Minister replied that she 
would be interested in USG technical assistance and training 
programs for the oversight of radioactive materials, 
particularly uranium.  She indicated that the GRM was 
drafting a law that would guide the mining operations in this 
area, including environmental issues, along with subsequent 
transport and export, and suggested that there was the 
potential for much growth.  The Charge assured her that we 
would consult with Washington agencies. 
 
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COMMENT 
------- 
 
¶5.  (C) We do not share the Minister's optimism on the 
strength of the GRM's laws and institutions governing the 
mining and petroleum sectors and believe that Mozambican 
participation in EITI would be beneficial.  She clearly 
seemed annoyed by the reference to EITI (&Why isn't the U.S. 
a member?8 she asked.), something which the British and 
Norwegian Ambassadors here have also been discussing with the 
GRM.  The Minister's mention of uranium suggests that the GRM 
believes that radioactive minerals may exist in Mozambique in 
larger quantities than are currently known.  Embassy welcomes 
input from Washington agencies on how best to support strong 
GRM oversight in this area. 
 
Chapman