HomeBase MetalsMinerals transport in Mozambique to cost US$14 billion over next five years

Minerals transport in Mozambique to cost US$14 billion over next five years

A coal train travelling
from inland to the
Mozambique coast
“’ an increasingly
common site these
Maputo, Mozambique — 19 July 2012 – Projects to build rail and port facilities in Mozambique to ensure the transport of mining products, notably coal, may cost US$14.084 billion over the next five years, according to Mozambique’s transport and communications minister.

Macauhub News Agency reports that in the last four years, the government and its partners have invested around US$986 million, mainly on ports, railroads, civil aviation, road transport and expansion of telecommunications networks.

According to daily state newspaper Notícias, minister Paulo Zucula noted that the expectations created by the rate of private investment were enormous, but pointed out that domestic resources were lacking given the amount of investment needed to build the necessary rail and port facilities.

The minister said that the government expected that within three years Mozambique would have capacity to carry around 50Mtpa of coal, after investing US$5.28 billion on the Moatize-Nacala railway and a similar amount on making the Sena line capable of carrying at least 18Mt, which is three times its current capacity.

Construction of the Mutuali railroad, costing an expected US$3.521 billion, and linking Moatize to the Nacala Corridor without passing through Malawi, is at an advanced stage. Another railway in its preliminary stages of planning is the Macuse line, linking Moatize to the Port of Macuse in Zambézia province.

According to projections from mining companies, it is estimated that in 2025, annual coal production in Mozambique will be 100Mt.

Source: Macauhub News Agency. For more information, click here.