Brazilian group Vale postpones plans to expand mining operations in Mozambique

1 March 2013

Expansion of mining exploration by Brazilian mining group Vale in Moatize, Mozambique has been postponed for a year, from the second half of 2014 to the same period of 2015, the group said whilst reporting on its accounts for 2012.

The statement also said that construction of a railroad from Moatize, in Tete province, to Nacala, in Nampula province, via Malawi, has taken on new significance due to the poor quality railroad network in Mozambique.

The railroad that links Moatize to Nacala, where there is a mining terminal with capacity to handle 22 million tons per year, in which investment is expected to total US$4.44 billion and US$409 million this year, is due to start operating in the second half of 2014.

In February Vale said it had been forced to quote reasons of force majeure to explain its inability to fulfil some coal supply contracts because of the stoppage of the Sena Railroad, which links Tete to the port of Beira, following flooding. (macauhub)

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