Maputo, Mozambique — 26 February 2013 – The Sena railroad in Mozambique “’ a main transport link between the coal mines of the Tete province and the port of Beira on the Indian Ocean coastline “’ is scheduled to be re-opened by Tuesday, according to the Mozambican minister for transport and communications, Paulo Zucula.
Speaking from the site of emergency repair work, he said that, as well as a section that had been destroyed following a derailment, a section of around 800m had disappeared when floods washed away rails, sleepers and ballast, and destroyed some small bridges, reports Macauhub News Agency.
The minister added, however, that even when the repair work was finished, circulation on the line would have speed restrictions, which would prevent Brazilian group Vale and Anglo-Australian group Rio Tinto from re-launching normal transport of the coal they mine in Tete province to the port of Beira for export.
Before the railroad came to a standstill, six trains per day loaded with coal travelled along the line, five of which were loaded with Vale’s coal and one with Rio Tinto’s.
Last week the two groups formally announced that they were unable to honour the coal purchase contracts they had signed, given that it was impossible to transport the coal. Rio Tinto actually announced that it was bringing production to a complete standstill.
Meanwhile, new Rio Tinto Group chief executive Sam Walsh says his company’s coal project in Mozambique will remain a group asset and there is no intention to sell it despite a write down of US$3 billion in its book value.
Source: Macauhub News Agency. For more information, click here.