Maputo, Mozambique — 17 September 2013 – Investment ear-marked for Mozambique by Brazilian mining giant Vale has remained unchanged at US$8 billion, and difficulties of transporting coal from the group’s inland projects to the coast have not affected the situation.

Vale Mozambique director Ricardo Saad told Portuguese news agency Lusa that, although the restrictions on transporting coal had required an additional initial investment, the company was still not exporting the quantities it had expected, reports Macauhub News Agency.

“The projection is exports of 4.5Mtpa, but we have yet to reach that level. We started production in August 2011, in 2012 we exported almost 3Mt and in 2014 we expect to reach the maximum capacity of the Sena line that is available to Vale,” said Saad.

The Sena railroad, which carries the coal from Moatize to the port of Beira, does not operate at its projected capacity due to a number of problems.

To overcome these difficulties, Vale Mozambique, owned by Brazilian group Vale, recently announced an investment of US$4.5 billion to build a 250-km section of the Nacala railroad, to carry the coal from Moatize to the port of Nacala, which is north of Beira.

Saad noted that the railroad to the port of Nacala was considered essential to carry the coal produced in the expansion phase of Vale’s Moatize mine.

Once the Nacala railroad and port of Nacala are operational, the current capacity will be doubled, along with the group’s share of the Sena railroad’s capacity. Vale expects to export up to 22Mtpa of coal, starting in 2017.

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