Transport of mining products in Mozambique to cost US$14 billion over next five years

16 July 2012

Projects to build rail and port facilities in Mozambique to ensure the transport of mining products, notably coal, may cost 400 billion meticals (US$14.084 billion) over the next five years, said Mozambique’s Transport and Communications Minister.

In the last four years, the government and its partners have invested around 28 billion meticals (US$986 million) mainly on ports, railroads, civil aviation, road transport and expansion of telecommunications networks.

According to daily state newspaper Notícias, Minister Paulo Zucula noted that the expectations created by the rate of private investment were enormous but noted that domestic resources were lacking given the amount of investment needed to build the necessary rail and port facilities.

The minister said that the government expected that within three years Mozambique would have capacity to carry around 50 million tons of coal per year, after investing 150 billion meticals (US$5.28 billion) in the Moatize-Nacala railway and a similar amount on making the Sena line capable of carrying at least 18 million tons, which is three times its current capacity.

Construction of the Mutuali railroad, costing an expected 100 billion meticals (US$3.521 billion), linking Moatize to the Nacala Corridor without passing through Malawi, is at an advanced stage. Another railway in its preliminary stages of planning is the Macuse line, linking Moatize to the Port of Macuse in Zambézia province.

According to projections from mining companies, it is estimated that in 2025, annual coal production in Mozambique will be 100 million tons. (macauhub)