Coal exports expected to net Mozambique a minimum of US$15 billion

3 November 2011

Perth, Australia, 3 Nov – Mozambique’s revenues from exports of coal mined in Tete province are estimated at between US$15 billion and US$17 billion according to a study published by Anglo-Australian group Rio Tinto, cited by the Mozambican press.

The group, which this year took control of Australian company Riversdale Mining following a takeover bid also said it was preparing to make significant investments in order to move ahead with mining the coal reserves in the Mozambican province.

The study, published Monday during a visit by the Mozambican president to the group’s facilities some 1,300 kilometres from the city of Perth in Western Australia, also said that the Rio Tinto group would, by 2016, employ over 3,000 workers.

The chief executive of Rio Tinto Coal Mozambique, Eric Finlayson, said that the company planned to introduce the company’s worldwide standards for health, safety, the environment, community, human resources and construction to it Mozambican operations.

“Rio Tinto wants to develop its coal projects in the Tete basin as quickly and safely as possible,” said Finlayson, adding that there was a pressing need to resolve logistics issues which are currently a problem that is affecting exports.

Coal from Tete is currently exported via the port of Beira in the central province of Sofala and which is some 575 kilometres from the Moatize coal basin which can be reached via the Sena railroad or by truck.

Rio Tinto has said it is considering alternative routes including transport by barge along the Zambezi River to Chinde, as well as construction of a new railroad and a port near Quelimane in Zambezia province. (macauhub)