Eurasian Natural Resources group prepares logistics corridor to export coal in Mozambique

9 February 2012

Cape Town, South Africa, 9 Feb – The Eurasian Natural Resources Group (ENRC) is preparing to build a logistics corridor in northern Mozambique to transport coal from Tete province to the coast, due to be ready in 2015, the managing director of the group said in Cape Town Wednesday.

ERNC, a mining group listed on the London Stock Exchange’s FTSE-100 index, is the leader of a logistics system that includes construction of a railway with capacity to carry 60 million tons of cargo per year and a sea port in Nacala capable of processing the same amount, Paul Craven told Dow Jones Newswires, on the sidelines of the Mining Indaba international mining conference.

Craven also said that the group’s port would be located next to that of Brazilian mining group Vale, would have an initial capacity of 40 million tons per year and that that could be expanded to 100 million tons per year at a later date.

The managing director of Eurasian Natural Resources said that the cost of building a logistics corridor similar to that of the Vale group would be less than the US$4 billion the Brazilian company plans to spend o building a railway line with an 18 million-ton-per-year to Nacala.

Unlike Vale’s railway which will leave Mozambique, enter Malawi and return to Mozambique, the ENRC group’s railway will be entirely built in Mozambique, which according to Craven will make the route shorter and construction cheaper.

The ENRC group has already started developing the first of 12 mining licenses it has in Tete, known as the Estima Project, which is expected to produce 20 million tons of coal per year as of 2015/16 with an investment of US$500 million. (macauhub)