Road Town, British Virgin Islands, 19 Jan – The Ncondezi Coal Co. has signed a deal with Anglo-Australian group Rio Tinto to carry out studies with a view to construction of an integrated transport corridor in Mozambique, where both companies own coal assets.
According to a statement published on the website of the company, which is based in the British Virgin Islands, the agreement signed with Rio Tinto Coal Mozambique, a subsidiary of the Rio Tinto group, and with mining company Minas do Revuboé is intended to study the economic feasibility of building a railway line and a port in Zambézia province in order to export coal mined in Tete province.
Noting that the agreement was part of the company’s strategy to export coal mined at the Ncondezi project, the company said that the study would focus on finding a solution with potential for growth and to transport between 25 million and 100 million tons of coal per year.
The project, the statement said, could be the best and cheapest rail option for carrying coal mined in Tete province, given that it would be the shortest distance between the mining sites to the sea and would use modern technology and facilities in order to make the most of economies of scale.
Under the terms of this agreement the Ncondezi Coal Co. would have the right to transport 10 million tons of coal per year and would not have to pay part of the costs of carrying out the study.
The Ncondezi Coal Co. has four exploration licenses in Tete province next to the projects owned by Brazil’s Vale and Rio Tinto. (macauhub)