Rio Tinto Group may build rail and port project in Mozambique

11 April 2013

Anglo-Australian group Rio Tinto is one of six selected by the Mozambican government to build a rail and port project costing US$3 billion with a view to increasing coal exports, the Mozambican Transport Minister said Tuesday.

An absence or lack of quality transport facilities is the main problem facing international groups that have invested in mining projects in Mozambique. Rio Tinto recently took an impairment loss of US$3 billion on its Mozambican project.

“We had 21 companies or groups in the pre-selection process and have chosen six who will now have to present their proposals,” Minister Paulo Zucula told financial news agency Reuters.

The minister added that, as well as Rio Tinto, the other five groups selected were logistics groups and added that the tender would be awarded in July.

The public tender is to build a railroad from Tete province to Macuse, in Zambézia province, and a new port with capacity to handle 25 million tons of coal per year, with a possibility of doubling that amount in the future. (macauhub)