Johannesburg, South Africa, 15 June – Essar Africa Holdings, a subsidiary of Indian group Essar, has announced it plans to process the iron ore it mines in Zimbabwe before exporting it via a terminal it may build in the port of Beira, Mozambique.
The company is looking into the feasibility of building iron ore and coal terminals at the port of Beira, in Mozambique’s Sofala province, following its acquisition in march of 54 percent of the steelmaking assets of state company Zimbabwe Iron & Steel Co (Zisco), for US$750 million.
In a statement sent to financial news agency Bloomberg, the board of directors of Essar Africa Holdings said that Mozambique is the logical exit for iron ore exports from Zimbabwe and added that the iron ore would only be exported after processing had added some value to it.
Last week, Firdhose Coovadia, director of the Essar group for the Middle East and Africa said in Cape Town that Essar was considering building an iron ore terminal at the port of Beira in Mozambique with an annual capacity of 20 million tons. (macauhub)