Coal Mining Site in Mozambique

Africa, Land of Natural Resources: The Whole Picture
Exploring the Potential of Its Energy and Metal Resources【Coal】

Japan Oil, Gas and Metals National Corporation

Development of Coking Coal in
Inland Mozambique■ Coal Mining Development in Mozambiqueby Japanese Companies
Coal is still an important energy resource, and its demand is growing in developing
countries such as China and India, making it increasingly diﬃcult to secure a stablesupply of coal. Japan is developing new sources around the world, and Mozambique inAfrica is one of the promising area for coal production in the future.
A 5 year coal industry development plan has started in Mozambique in 2012, led by theJapanese government, and JOGMEC is currently in charge of the following operations:
1) Geological surveys:
JOGMEC is working together with the government of Mozambique in the provinces ofNiassa and Manica, which show great promises for coal reserves. From 2013 it moves tofull scale surveys, such as borings.
2) A coal industry master plan for future coal use:
JOGMEC is carrying out surveys on needs and potentials of coal related industries in
the coal production areas, and from 2013 we plan to formulate a master plan and an
implementation plan.
Since especially Mozambique has a plenty of reserves for hard caking coal which isessential to produce steel and which global reserves are quite limited, Nippon Steel &Sumitomo Metal Corporation and Nippon Steel Trading Company have been engaged ina coal development project (the Revuboe Project) in this country from the beginning,and JOGMEC is providing the project with supports in order to secure a stable supply
of coal for Japan in the future.
Unlike oil and natural gas, which can be transported over land by pipelines, rail systems
are important for transportation of coal. Coal transportations also require ports which
are capable of accommodating large ships. Coal development should move forward withthat of infrastructures of the nation and therefore it is a process to contribute to thenation building itself of Mozambique.

■ Africa Promises High Potential for Coal as Well

According to WEC, as of the end of 2008, proved recoverable coal reserves in an entire
Africa are 31.7 billion tons, which accounts for just 3.7% of the world's reserves(including lignite). And most of them are located in South Africa. But it is possible that
this is due to insuﬃcient surveying outside of South Africa, and that there will be many
discoveries of coal reserves in surrounding countries in the future.
In the southeast area of Africa, as a result of recent surveys, approximately 20 billion
tons of coal resources have been reported in Tete Province, Mozambique (Clean Coal
Symposium, 2011, Tokyo). In Botswana as well, 3.3 billion tons of measured coal reserves
have been conﬁrmed (McCloskey Coal Exports Conference 2009). There is a high expectation for the discovery of abundant resources in Zimbabwe, Tanzania, and Madagascar,
too JOGMEC is going to proceed with development projects which contribute to securing a stable supply of coal for Japan, and deepen strong relationships between Japan andthe countries of Africa.

The Public Relations Magazine of the Future of Resources and Energy

vol.

▶Coal Development inMozambique's Tete Province(Main Projects Only)
ZambiaTanzania

MalawiNippon Steel &Sumitomo Metal
Corporation Group(Revuboe)Riversdale(Zambeze)

NiassaProvince
Nacala Railway

JSPL(changara)

NacalaTete

New rail line construction

Vale(Moatize)
Rio Tinto(Benga)

Coaldevelopment
project area

ManicaProvince
Zimbabwe

Sena Railroad
BeiraActive coal mine
Under development
Existing coal export port
Planned coal export port

South
AfricaMAPUTO(Matola)
Swaziland▶Global Proved Recoverable Coal Reserves(as of end of 2008)

Africa,32
MAR.
2013.3

Land of Natural Resources:
The Whole Picture
Exploring the Potential ofIts Energy and Metal Resources

Sources：World Energy Council, 2010 Survey of Energy Resources（million tons）

300,000
250,000

LigniteSub-bituminous coal
Bituminous coal

200,000
150,000
100,000
50,0000AfricaNorth SouthAmerica America

Asia

Europe Middle Oceania
East

Cover photo courtesy of Mitsui & Co. (photo of the Mozambique oﬀshore gas ﬁeld production test)
Percentage of Waste Paper pulp 100%

©Anadarko Petroleum Corporation

The eyes of the resource development industry are turning toAfrica.
The African continent has long been considered rich in potential
energy and metal resources. However, many of its countries
have been plagued by civil wars and political instability since
gaining independence, and infrastructure development lags. Thishas prevented full-ﬂedged resource development in all but ahandful of locations.
In recent years, however, this situation has begun changing
dramatically. Wars have ended, and the number of countries whowish to grow economically by leveraging their resources has
increased.
One of the early supporters of these moves by African countries
has been Japan. TICAD (the Tokyo International Conference on
African Development) will be held in Yokohama from June 1 to3. This will be the ﬁfth session of the conference, which began in
1998, and is held jointly by organizations such as the United
Nations, the United Nations Development Program (UNDP), and
the World Bank. What sets TICAD apart the most is that it does
not restrict itself to mere economic aid, but instead is focused on
eliminating poverty in Africa and expanding its interaction withthe rest of the world economy. It has emphasized the need for
economic development to be accompanied by societal
development, such as education, health and hygiene, and support
for the impoverished. JOGMEC, which is involved in many
resource development projects in Africa, holds this philosophy inhigh regard, and has striven to create resource development
business which is beneﬁcial to both resource-rich countries andJapan.
As surveys of wide expanses of Africa have progressed, they
have found that the continent's resource potential is far greaterthan originally believed. Deposits of oil, natural gas, coal, andmetal resources including rare metals have been discovered.
Many geological structures potentially rich in these resources
have also been identiﬁed.
This special edition focuses on the latest information about
resources in the constantly changing African continent.

Tunisia

Sources: JETRO international balance of payments statistics, UNCTAD statistics(Million dollars)(Million dollars)

8,000

800,000

Libya

Other
51%

Cabo
Verde

Mali

GambiaGuinea‐Bissau

GuineaSierra Leone
Liberia

Republic of
Cote d'Ivoire

Benin
Ghana
Togo

From Ghana deep sea large scale oil
Equatorial
ﬁeld discovery to deep seas around Sierra Leone
Guineaand Liberia, and further on to South America
Democratic Republic of Sao Tome and Principe

Countries with proved reserves of 10Tcf or more anddaily commercial production of 1Bcf or more (both as ofJanuary, 2011)(Based on CEDIGAZ 2011 data)

Metal resource development regions

Promising oil and natural gas
development regions

99 2000 01

02

03

04

05

06

07

To other African countries

08

09

Eritrea

Nigeria

NickelSouth Africa
95%

Other
92%

Cameroon

Ethiopia

South Sudan

Central African
Republic

Somalia
Republicof theGabon Congo

UgandaDemocratic Republicof the Congo

Digging has ﬁnally begunin the Great Rift Valley ofeastern Africa

Kenya

RwandaBurundiTanzania

Niobium, tantalum,
uranium, rare earth

Copper,cobaltComoros

Angoladeep sea
pre-salt

AngolaMalawiMadagascar
Zimbabwe

Balance of direct investment in Africa also includes investment within African countries

Namibia

Platinum metals,
nickel,manganese

Seychelles

Expansive gas ﬁelds in the
deep sea oﬀ theeastern coast of Africa

Zambia10 (Year)Land of Natural Resources:
The Whole Picture

Platinummetals*Oil, natural gas, and coal figures are for proved recoverable reserves.
Metal resource figures are for proved reserves.

(Main regions only, including those in the project stage)

Africa,Democratic
Republic of the
Congo
45%
CobaltBotswana
1%

Djibouti

Main oil producing countries

Countries with proved oil reserves of 10 billion barrels ormore (as of January, 2013) and daily production of 1
million barrels or more (estimated, 2012)(Based on data from Dec., 2012, edition of the Oil & Gas
Journal)Madagascar 2%
South Africa 5%

Source: USGS mineral commodity summaries 2013

Burkina Faso

200,000

98

Coal

Zambia 4%

Sudan

Chad

2,000

1996 97

Niger

SenegalCoal development regions

To South Africa

Naturalgas

Other 5%Mauritania

400,000

0

3.7%

Sources: WEC, 2010 Survey of Energy Resources

Egypt

Western
Sahara

4,000

0

7.9%

Algeria[Copper, cobalt, platinum metals, nickel,
niobium, tantalum, uranium, rare earth, manganese]

Balance of direct investment in Africa

9.5%

Oil

600,000

6,000▶Ratio of African resource reserves to world reserves

MoroccoMain natural gas producing countries▶Direct investment in Africa by Japan

Hopes for north African
shale gas

Mozambique

Mauritius

NickelBotswana

Swaziland
LesothoSouth Africa

Kenya, Maasai Mara National Reserve

Exploring the Potential of Its Energy and Metal Resources

02

JOGMEC NEWS vol.32

JOGMEC NEWS vol.32

03

■ The Giant Gas Field in Mozambique
Whose Discovery Startled the World

The following areas have been widely known as Africa's main energy
resource supplying areas.
1) Countries bordering the Mediterranean Sea in northern Africa (Libya,
Algeria, Egypt, etc.)
2) Countries bordering the Gulf of Guinea (Nigeria, Gabon, Republic of theCongo, Equatorial Guinea, etc.)
3) Southwestern Africa (Angola, etc.)
4) Inland northern Africa (South Sudan, Sudan, Chad, etc.)
However, in recent years large oil and gas ﬁelds have been discovered inareas where there was almost no production in the past. And also Potentiallyresource-rich geological structures have been discovered. These discoveries
are poised to make major changes to the energy situation.
One of the watched new areas for which have high expectation is the massive
gas ﬁeld discovered in the deep water area oﬀ the coast of Mozambique.
Mozambique is situated in the southeast of Africa, and has a long coastline
bordering the Indian Ocean. Multiple gas strata have been discovered in thesea to the north, near Tanzania. Only in the two existing exploration sites,
reserves are expected to exceed 100 trillion cubic feet (Tcf). Further development in adjacent areas may turn these areas into the biggest natural gas
supplying ones in the world.
Japan's Mitsui & Co. has entered into natural gas development in Mozambique, and the area is expected to become one of the most important energy
resources in Japan from 2018, when the project plans for LNG production to
begin.
JOGMEC has also provided a variety of support, one example of which is
described below.

▶Exploration Sites at which Gas Fields Have Been
Discovered in the Deep Sea off the East Coast of Africa,
and Nearby Exploration Sites

Shell (Block12)
Ethiopia

Shell (Block11)
Shell (Block10)

South Sudan

Somalia

UgandaKenya

Tanzania

Shell (Block9)
Petrobras (Block8)

Eastern Rift Valley
Western Rift Valley
Nyasa Rift Valley

Ophir Energy (Block7)
Tanzania

Petrobras (Block6)▶Main License Block in the
Eastern Africa Rift Sedimentary Basin

Petrobras(Block5)

Chewa
Pweza

BG

Indian
Ocean(Block4)

BG

South
Sudan
11A

(Block3)

Statoil (Block2)

11B

Uganda12B

Mamba North

Barquentine
Windjammer

Training Operations Strengthening the Relationship between Japan and theGas Producing Country and Creating a Win-Win Situation for Both Side

Camarao
Mamba South

LagostaTubaraoMozambique
0

25 50

100km

Anadarko

Eni(Area1) (Area4)

10A

JOGMEC's Geological Survey Operations in Kenya

9

2A
2B
3A
3B
L1A
L1B

12A

Kenya
14T

Nairobi

L2

L14
L15

Tanzania

L16
L17

Tullow Oil operator mining site
Eastern Africa rift sedimentary basin

StatoilIn April, 2012, JOGMEC signed a joint petroleum exploration agreement with the National Oil
Corporation of Kenya (NOCK). We are currently engaged in a joint geological survey project in
Kenya, and it will make a diﬀerence.

1

10BB

L20
L19

Somalia■ The Growing African Atlantic Oil Gas Field Zone
L3
L4

L6

L13
L5
L7

L8 L12L9 L11A
L10A
L10B L11B
L18 Indian Ocean

Ghana(Area2)

Statoil(Area5)

Petronas Petronas(Area3)Equatorial Guinea(Area6)

Brazilblic
Repu

AngolaAfrica, Land of Natural Resources: The Whole Picture
Exploring the Potential of Its Energy and Metal Resources【Oil, Natural Gas】

04

Oil Gas Production Maps
Are Being Redrawn with the
Discovery of New Hot Areas
JOGMEC NEWS vol.32

On the Atlantic coast, countries such as Nigeria, Equatorial Guinea, and Gabon, located at
the deepest parts of the Gulf of Guinea, have been oil producing countries, but production
has rapidly risen in Angola, to the south, which has been engaged in deep sea oil ﬁeld
development. It is now the second largest producer of oil in Africa, following Nigeria. The
Angola area split from what is now the south of Brazil when the African and SouthAmerican continents separated, between the Jurassic and the early Cretaceous periods.
Development is underway in Brazil of oil gas beds under the deep sea bedded salt called"pre-salt". Brazil now has the 14th largest amount of oil reserves in theworld.
The coast of Angola, then, which shares the same geological
Togo
Niger
structure, has great potential for increased oil production if pre-saltBenindevelopment continues in the future.
In the area from the Gulf of Guinea to the west, as well, newNigerialarge-scale gas ﬁelds have been discovered in the deep sea oﬀ thecoast of Ghana, leading to the construction of mining sites in the Ivory
Cameroon Chad
Coast, Liberia, and Sierra Leone, to the west, and exploration anddevelopment are underway.

Gabon

Closing Ceremony and Commemorative Photographwith the Embassy Minister

View of the Geological survey areafrom the Eastern Rift Valley
fault scarp

In spring of 2012, the British oil development company Tullow Oil succeeded at exploratory
oil drilling in the Turkana District in northwestern Kenya. This was an accomplishment for
Kenya, which had not previously been an oil producer, and drew attention to this new development area, following Mozambique.
Nearby, South Sudan (which became independent from Sudan in July, 2011), located to thenorth, is another area rich in oil, but Kenya's geological structure is completely diﬀerent
from South Sudanʼs one.
Kenya is crossed by the Great Rift Valley, which runs north-south, dividing the east of
Africa. The Great Rift Valley was formed between around 5 and 10 million years ago,
relatively recently in geological terms. In Africa, oil has generally been found in much older
strata, so it wasn't believed to be present in strata this new.
However, thick lake deposits were found in Uganda, in the Western Rift Valley, as well assource rock, which generates oil, and sandstone, which forms reservoirs. From 2005
onwards multiple oil ﬁelds were discovered. This was the ﬁrst discovery of oil ﬁeld in
Kenya, located in the Eastern Rift Valley, and it is expected to result in an increase in development activities.

Ethiopia

BG(Block1)■ Oil Dug Up in the Great Rift Valley of Eastern Africa

10BA

13T

Zafarani

JOGMEC's Mozambique Training Operations

JOGMEC's training operations are important tools. They not only broaden and deepen
JOGMEC's connections, but also enrich and expand the infrastructure of humanresources with oil producing nations, such as their engineering and management ̶̶a win-win situation. In Mozambique, which discovered an unexpectedly large gas ﬁeld,
a intergovernmental agreement has been signed, which includes the acceptance of
LNG technicians.
The number of trainees from Mozambique has now reached 28. Over the past 25 years,
JOGMEC has provided training to 2,736 technical personnel from 46 countries,
including Mozambique.
We will continue to enhance andexpand our training activities in order
to cultivate human resources in
oil-producing countries, which will beable to contribute to a stable supplyof resources to Japan in the future.

▶Great Rift Valley of Eastern Africa

ngo

e Co

of th

Democratic
Republicof the Congo▶Relationships between Petroleum Systems(Source Rock, reservoir rock sedimentation environments, and ages)of South America and Western Africa

Sources：Geology and Total Petroleum Systems of
the West-Central Coastal(7203), West Africa(USGS,2006)

JOGMEC's Investments in Africa
JOGMEC invests in exploration business by Japanese companies in Mozambique, as well as
Ghana, the Democratic Republic of the Congo, Gabon, and Namibia.
If these projects are successful, it will deﬁnitely contribute to a stable supply of energy toJapan through supply source diversiﬁcation, as well as further strengthening Japan's ties withthese companies.

■ The Shale Gas Revolution Beginning in Northern Africa

In addition to these sub-Saharan developments, there have also been new developments inthe oil gas producing countries of northern Africa.
In the past, the energy resources produced by these countries have been carried toEurope via pipelines crossing the Mediterranean Sea. However, since shale gas
development is beginning in and around Libya, and production levels are getting risinge,
so these areas will get a lot of attention as a new future supply ones for Japan.
JOGMEC NEWS vol.32

05

Molybdenum (Rare metal)【Metal Resources】▶Locations of JOGMEC's platinum metal exploration projects

Multiple New Discoveries of
Platinum, Rare Earth,and Other Deposits

Waterberg Plateau
Location: Approx. 270km NNW of Pretoria
Survey Period: 4 years, beginning in 2009

Pretoria

Mogalakwena mine (Operated by Anglo American Platinum)
Amount of Deposits and Resources: 3,544 million tons
Amount of Metal: 265.9 million ounces (approx. 8,270 tons)[Platinum, palladium, rhodium, gold]

South Africa

Bushveld Complex

Plat Reef Project
JOGMEC-funded project
Full-fledged exploration
currently in progress

Waterberg Project Recognized as
the Best Exploration Results in 2012

Africa, Land of Natural Resources: The Whole Picture
Exploring the Potential of Its Energy and Metal Resources

The discovery and resource development of platinum metals
ore in the Waterberg area was awarded as the "2012
Exploration of the Year Award" by Mining Journal as the mostoutstanding exploration results. In addition to Waterberg
project, the other JOGMEC copper/gold exploration project,"Frontera" in Chile was also nominated as the best ﬁve
ﬁnalists. JOGMEC Metals Exploration Department is proud ofthese achievements, and hoping that the discoveries
contribute to secure future resource supply to Japan and theworld.

Test Drilling in the
Waterberg Plateau

Site of Joint Research with the
Namibia Geological Survey■ JOGMEC's Platinum Metal
Exploration Project, Winner of the2012 Exploration of the Year Awards

JOGMEC is conducting platinum targeting exploration project in
Republic of South Africa with our JV partner, Platinum Group
Metals Limited (PTM). Platinum metal is an extremely important
for the use of an exhaustion cleaning catyalyst for car industries.
Platinum metals have been primarily mined in Republic of South
Africa of which amount accounts for nearly three-quarters of theworld's platinum production. JOGMEC started a grass-rooted
exploration project, "Waterberg" located in the north end of the
Bushveld Complex in 2009. The ground surface of the area
entirely consists of dense covered material over Bushveld, so
none has done mineral exploration ever. JOGMEC and Canadianpartner PTM introduced regional ground magnetic/gravity
surveys and then conducted scout drillings. In January 2012, thethird hole intersected new mineralized reefs at depth. That wasa discovery of the Waterberg deposit. Following massive drilling
campaign is revealing the nature of these new reefs and realvalue of the Waterberg project. Latest press release in 2013
reported approximately 315 tons of 2PGE+Au metals in theinferred category. Drilling program is still ongoing in 2013.

■ Expectation of Stable Supply of Rare Earth Elements (REE)

The last example is the rare earth element exploration being performed in Malawi.
Rare earth elements, one of the rare metals, are used in many of hi-tech industries, i.e. as additives of quality magnets, ﬂuorescentlight tubes, abrasive powder and so on One of the concerns is that the world production of REE is mostly dominated by just one
country and its export is strictly regulated under politics. JOGMEC's goal is to create new resource supply through the exploratory
work and resultant development. Malawi is one of the countries where JOGMEC has its keen interest.
Southern African countries are viewed as extremely promising area for various metals resources, especially of platinum metals and
REE that could be concentrated only in a handful of countries. Sovereign risks may have hindered resource investment of Japanese
investors; however JOGMEC is proceeding a package of activities of Botswana Geologic Remote Sensing Center and various exploration programs to create new resource values in SADC countries.

Working Together Onsite with Local Staﬀ in Malawi

The Southern African countries, the vast area extending from the Democratic Republicof the Congo to Republic of South Africa, are well known region of its huge potential of
metals resources; however actual development was less progressed comparing its
potential due to civil wars, governmental instability and so on. As improving investment
climate, a variety of exploration/mining projects are gradually increasing these
decades. This section will introduce some of the JOGMEC activities regarding metals
Exploration in the Southern African countries.

■ Establishment of the
Botswana Geologic Remote Sensing Center

In July, 2008, JOGMEC established the Botswana Geological Remote Sensing Center in
Lobatse, Botswana.
Remote sensing is one of the regional geoanalytical approaches based upon geological dataacquired by satellites and/or aircraft-borne sensors. It is one of the ﬁelds that Japanese
geoscientists have an advantage with an extensive experience. The goal of the Botswana
remote sensing center is to carry out geological analysis in entire Southern African countries,
cooperating with the Government technical staﬀ of Southern African Development
Community (SADC) countries. In order to achieve this, JOGMEC is providing training
opportunities on geologic remote sensing and transferring analytical skill of data manipulationand image interpretation. In addition to this, site veriﬁcation (groundtruth) and target
deﬁnition are also jointly performed for the sake of further activating mineral exploration.

06

JOGMEC NEWS vol.32

The Botswana GeologicalRemote Sensing Center (both photos)

Sampling in the South of Malawi (both photos)

JOGMEC NEWS vol.32

07