Brazil’s Vale invests US$1.7 billion in railway between Moatize and Nacala in Mozambique

6 March 2012

Mozambique’s Centre for Investment Promotion (CPI) is analysing a proposal from Vale Moçambique, s subsidiary of Brazilian mining company Vale, to build a railway linking the coal town of Moatize to Nacala-a-Velha in Mozambique, via Malawi costing US$1.7 billion, according to a report Tuesday in Mozambican newspaper Notícias.

The assistant director general of the CPI, Godinho Alves, told the newspaper that the railway would be 201 kilometres long of which 130 kilometres would be laid in Malawi.

Alves also said at a meeting with businesspeople that, “as well as the railway, the project also includes construction of a port to dispatch coal transported from Moatize.”

The section of the railway line that crosses Malawi will be built by Portuguese company Mota-Engil over a period of 27 months at a cost of US$703 million. (macauhub)