Tete-Nacala railroad is best solution for transporting coal in Mozambique, director of Vale Moçambique says

31 August 2012

The Tete-Nacala railroad, passing through Malawi, is the most appropriate solution to carry coal mined in Moatize, said the managing director of Vale Moçambique, a subsidiary of Brazilian mining giant vale, Ricardo Saad in Maputo Thursday.

Saad also said that the railroad, “is the only one that makes the project viable and allows for expansion of coal mining activities in Moatize,” which, in the long term, will increase to 22 million tons per year.

The Tete-Nacala railway line, in which the Vale group plans to invest US$4.5 billion, will have an initial capacity of 30 million tons per year, which is more than the company’s current production levels.

He noted that since the beginning of its operation about a year ago the company had exported almost 1.5 million tons of coal and that this amount would increase as Vale Moçambique currently had capacity to produce 5 million tons of coal per year, and within eight years would be producing 22 million tons of coal per year.

Referring to the new railroad, Saad said that there would be no conflict with other mining companies operating in Tete province, noting that the Mozambican government planned to set up a state structure to manage rail and port facilities built by Vale.

Macauhub recently reported that four new mining projects would start operating in Tete: Jindal Resources (Mozambique), Eurasian Natural Resources Corporation (ENRC), Ncondezi Coal Company and Minas do Revobué, which increases the number of companies mining coal in the province to a total of seven. (macauhub)