HomeEnergy MineralsRio Tinto will solve Mozambique logistics problems

Rio Tinto will solve Mozambique logistics problems

Cape Town, South Africa — 11 February 2013 – Mozambique mining resources minister Esperança Bias says that Anglo-Australian mining giant Rio Tinto will be able to find a logistics solution that will allow it to export the coal it mines in the country’s Tete province.

Following a valuation of its assets in Mozambique the group recently announced a write- down of US$3 billion in Mozambique, which along with write-downs related to the acquisition of bauxite assets in Canada, led to chief executive Tome Albanese stepping down, reports Macauhub News Agency.

In an interview here, the minister played down suggestions that the group may sell its assets in Mozambique due to difficulties in transporting its coal production. “Naturally we are concerned, but if we look at the problems faced by Rio Tinto we can see they are not exclusive to Mozambique, and we believe that a solution can be found”, said Bias.

The president of Rio Tinto’s diamond and mining division, Alan Davies, said the group was in talks with the Mozambican government while seeking an alternative logistics solution to transport coal mined in Tete province.

He added that the group’s priority was to find a solution that was agreeable to both sides so that exploitation of the asset could begin.

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