Maputo, Mozambique — 06 July 2012 – In another move towards improving transport infrastructure for the steadily growing mining industry of Mozambique, the government has awarded the concession for construction of  the Moatize/Malawi railway and the Nacala-a-Velha branch line to the Integrated Northern Logistics Corridor (CLIN).

Macauhub News Agency reports that minister for justice Alberto Nkutumula confirmed that the government had also approved the concession of the Nacala-a-Velha port coal terminal to the same company.

Both projects, which will be built from scratch, will require estimated funding of US$1.5 billion to be provided by CLIN, which is a partnership between a subsidiary of Brazilian mining giant Vale, Vale Mozambique, which will have an 80% stake, and state port and rail manager, Portos e Caminhos de Ferro de Moçambique (CFM) with the remaining 20%.

Nkutumula said that the project would take three years and work would begin before the end of this year. After the work is finished there would be an opportunity for Mozambican companies and citizens to acquire 5% of CLIN.

The terms of the concession stipulate that at a later phase and in stages CFM would increase its stake in CLIN to a maximum of 50%.

The railway is designed to have a capacity of 40Mtpa, 30Mt of which will be reserved for Vale, giving the company additional capacity to transport coal mined in Moatize, and the remaining capacity will be available to other companies or individuals.

The future railway line will run through the Moatize coal basin in Mozambique, in the central province of Tete, cross the border into Malawi and then re-enter Mozambique, ending at the port of Nacala-a-Velha.

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