Brazilian mining company, Vale says it is seeking a partner in its coal mining project in Mozambique’s Moatize and rehabilitation of Nacala Railway Corridor as it continues to incur losses due to lack of a shorter route to transport coal exports.
“We are at a very delicate stage of negotiations for the stake in both the Nacala Corridor and the Moatize mine. We should not and cannot talk about what is happening and who we are negotiating with,” said Vale chairman Murilo Ferreira said. “Producing without having a way to transport production is inefficient.”
Vale started operating the Moatize coal mine in the interior province of Tete in August 2011 and also started rehabilitating existing, and construction of new, railway track the Nacala Railway Corridor to transport its coal to the port for exporting.
In April this year Vale temporarily suspended transporting of coal using Sena railway line after a train conductor was injured in an attack that the Mozambican authorities blamed on rebel group Renamo.
If completed Nacala Railway Corridor will run for 912 km, and will result in coal with a capacity of 18-million tonne per year being transported.
The Nacala port is also being upgraded with a new coal terminal to handle the product that will come its way once the railway is finished.