First coal exported by Vale Moçambique to be shipped in July

9 May 2011

Maputo, Mozambique, 9 May – The first load of coal to be exported from Moatize, in Mozambique’s Tete province, is due to be shipped in July from the port of Beira, Mozambican newspaper Notícias said on reporting the official start of mining operations by Brazil’s Vale in Mozambique.

With an investment of US$1.6 billion, the mine will have a nominal production of 11 million tons of metallurgical and thermal coal. The coal will initially be exported from the port of Beira, to which it will be transported along the Sena railroad, along a 600-kilometre route.

Given the limitations of the Sena line, later the coal will be transported to the port of Nacala and negotiations are now underway for construction of a railroad linking Moatize to that port.

A memorandum of understanding was recently signed by Vale, which is proposing the new railroad, and the authorities in Malawi, through which the railroad is expected to pass.

Statistics issued in Moatize showed that the facility will make a significant contribution to the Mozambican economy, not only by creating jobs, but also because at its peak of production it will generate US$.2.5 to 3 billion for the country’s balance of payments. (macauhub)