Brazilian mining group Vale is expected by the end of the first half of 2014 to choose the partner that will take on half of its 70 percent stake in the Nacala logistics corridor, in Mozambique, said the chairman of the Brazilian group.
The Nacala corridor is the logistics facility of Vale’s Mozambican coal operation and includes a 912-kilometre railroad and modernisation and expansion of the deep water port of Nacala to transport the coal the group mines in Moatize.
The remaining 30 percent of this project is in the hands of state Mozambican port and rail company CFM
Cited by Brazilian newspaper Estado de São Paulo, Murilo Ferreira also said that the group was making efforts to find a party interested in buying the stake, which will mean Vale can reduce its investment in the project, which is estimated to cost US$4.4 billion.
Vale director for logistics, Humberto Freitas, said that the Nacala railroad will have capacity to carry 22 million tons of cargo per year, of which 18 million tons will be for Vale itself, a figure that may increase to 50 million tons if the train crossing areas are expanded. (macauhub)