Indian companies study construction of railroad in Mozambique

5 June 2012

Indian state group Coal India has started talks with two Indian industrial groups, Essar and Naveen Jindal, for the joint development of transport facilities in Mozambique, said a director of the group cited by Indian news agency DNA (Daily News and Analysis).

“Our assets in Mozambique require construction of 500 to 600 kilometres of railway (from Tete to Beira) so that the coal mined there can be carried to the ports for export,” said the source, adding that there were more Indian companies operating in the same area, “the costs of building the railway may be taken on by more than one entity.”

Tete province, where world class coal reserves have been identified, is 600 kilometres from the coast and has a single railway line – the Sena railroad – that will have a maximum capacity of 6.5 million tons per year when reconstruction work is finished.

Coal India was granted licenses for two blocks in the province in 2009 covering an area of 22,400 hectares, under the terms of which it has a period of five years in which to explore and develop the coal blocks.

Essar and Jindal Steel also have coal blocks near those of Coal India and Jindal Africa, the Mozambican subsidiary of Jindal Steel, was the first company to be granted a coal concession in Mozambique. (macauhub)