Logistical limitations force Vale Moçambique to reduce the amount of coal it mines

26 October 2012

Brazilian mining group Vale was forced to reduce production at its coal mine in Moatize, in Mozambique’s Tete province, in the third quarter due to logistical imitations, according to online publication Mining Weekly.

The problem is that work being carried out on the Sena railroad, which links Moatize to the port of Beira, in Sofala province, has not finished particularly work on the signalling system, which would allow trains to travel faster along the line and thus allow for larger amounts of coal to be carried along the route.

As a result of these logistical limitations, coking coal production in the third quarter was 14.3 percent down on the previous quarter, and thermal coal production fell 6.4 percent.

In quantitative terms production in the third quarter totalled 989,000 tons (624,000 tons of coking coal and 365,000 tons of thermal coal), as compared to 1.11 million tons in the second quarter (728,000 tons of coking coal and 390,000 tons of thermal coal).

Since the beginning of the year Vale Moçambique has mined 2.8 million tons of coal, 1.85 million of which were coking coal and 948,000 tons of thermal coal.

The Moatize mine accounted for 51.6 percent of overall metallurgical coal production by the Brazilian group in the first quarter and 51.3 percent in the first nine months of the year. (macauhub)