Brazilian group Vale expects to start exporting coal from Mozambique in June/July

22 February 2011

Tete, Mozambique, 22 Feb – Brazilian group Vale expects to start exporting coal mines in Mozambique in June or July of this year despite delays to work to rebuild the Sena railroad, the group’s project manager, Paulo Horta said in Tete.

“We are close to a solution,” Horta said adding that the coal processing unit and the railroad would undergo tests in May in order for the first transports to the port of Beira, in Sofala province to take place on the expected date.

Indian consortium Ricon, made up of state groups Rites and Ircon, was recently threatened by the Mozambican government that its concession on the Sena railroad would be cancelled and handed over to state company Portos e Caminhos de Ferro de Moçambique (Cfm) if it did not conclude the work by 24 March.

Vale plans to produce 1 million tons of coal for export in 2011 and to increase that amount to 6 million tons in 2012, 8.5 million tons in 2013 and 11 million tons in 2014, Horta said, cited by Brazilian newspaper DCI – Diário Comércio Indústria e Serviços.

Vale’s Moatize project is expected t become the group’s main coal project. Its first phase of development is expected to cost US$1.6 billion.

In 2010 Vale produced 3.9 million tons of coal at its operations in Australia and around 3 million tons in Colombia. (macauhub)