Brazilian group Vale unable to meet its contractual obligations to supply coal from Mozambique

19 February 2013

Brazilian group Vale has quoted reasons of force majeure to explain its inability to fulfil its contracts to supply coal mined in Mozambique’s Tete province, according to a statement issued Monday in Rio de Janeiro.

The Sena railroad has come to a standstill due to derailments and torrential rains that have washed away parts of the line and even some small bridges. This has meant that Vale Moçambique has been unable to transport around 250,000 tons of coking coal.

Until December of last year the Brazilian mining company transported over 2 million tons of coal along the Sena railroad on 1,000 trains, whilst Rio Tinto transported 35,000 tons of coal.

According to the Mozambican press officials from the Vale group are currently in Mozambique to assess the situation and the lack of infrastructure and inefficiency of the Sena line and plan to “deal with this at the highest level soon.”

As well as the 10 kilometres of railroad destroyed due to last week’s derailment, rains in Mozambique have led to huge losses on the line and in some places the water has washed away the rails, sleeper and ballast and even destroyed some small bridges. (macauhub)