Vale Moçambique reduced its coal production estimate in 2013 by 30 pct

20 May 2013

Vale Moçambique has reduced its projection for coal exports from Mozambique in 2013 by 30 percent, from 4.9 million tons to 3.4 million tons, said the company’s mining operations director, Altiberto Brandão.

The Sena railway, which is the only railway to link the mining district of Moatize, in Tete province, to the port of Beira, in Sofala province, was closes to traffic for two weeks in February due to flooding, which forced Brazilian group Vale to declare force majeure as it was unable to meet the demands of its coal contracts.

According to financial news agency Reuters, Altiberto Brandão also said that the line’s closure was in addition to other existing problems, such as a weak logistics infrastructure to carry the coal.

However, he said that production in 2014 was expected to total 6.4 million tons, which would increase to 9.2 million tons the following year and noted that the mining group was investing in increasing production capacity to 11 million tons. (macauhub)