Vale reduces coal production target in Mozambique

8 November 2012

Vale has reduced it coal production and export target for its Moatize project, in Mozambique by half to 2.6 million tons, due to the limited capacity of the railroad line that links the mine to the port of Beira, said a company official.

The company said in August that it expected to produce 4.6 million tons of coal at the mine in 2012, which would increase to 11 million in the future.

“We can’t produce at full capacity whilst there are limitations on transport,” said Altiberto Brandão, the operational director of Vale Moçambique cited by the Reuters news agency.

Brandão said that Vale expected to export around 5 million tons of coal in 2013, following conclusion of modernisation of the Sena railroad, which is expected at the end of 2012.

Following improvements the Sena railroad will be able to carry 6.5 million tons of coal per year, which is more than the 2 million tons it currently carries. (macauhub)