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Thursday, 30 September 10
INITIAL PHASE OF MOATIZE MINING BY EARLY NOVEMBER - ALL AFRICA


All Africa report that, the initial phase of mining coal at Moatize, in the western Mozambican province of Tete, will begin by early November, and the first coal exports from the Moatize basin should occur in the first half of 2011, according to the Deputy Minister of Mineral Resources, Abdul Razak Noormahomed.

Speaking at an international conference on coal, held in Maputo on Tuesday, Razak said Mozambique is preparing to become a major player in the international coal market over the medium term. Exploration undertaken so far indicates that Mozambique possesses at least 23 billion tonnes of coal reserves.

Two companies have formal coal concessions in Moatize district, and are expected to start exports in early 2011. They are Vale of Brazil and Riversdale of Australia. But many other companies are exploring the Tete coal deposits, though they have not yet been granted mining concessions. In all, 105 licences for exploration have been issued.

Razak thought that, when they reach peak production, the Vale and Riversdale mines will be producing 46 million tonnes of coal a year. But within three to six years another three companies will probably also be mining in Tete.

This raises enormous logistical questions, since the Sena railway line from Moatize to the port of Beira does not have anywhere near the capacity to move such large quantities of coal.

Vale therefore plans to build a new railway from Moatize, across southern Malawi, to link up with the northern Mozambican rail line to the port of Nacala, which is ideal for mineral exports since it does not require dredging and can accommodate ships of any size.

A further option is to send the coal on barges down the Zambezi. The Mozambican Coal Development Association (AMDC) insists that the Zambezi must be made navigable for coal barges by 2012. It calculates the investment needed for this at 149 million euros (about 203 million US dollars).

Speaking to reporters at the conference, AMDC chairperson Francisco Casimiro warned "Within three years we shall exhaust the capacity of Beira port, so we need other, complementary solutions. As soon as the environmental impact study is complete, we must take the decision on whether or not to ensure the navigability of the Zambezi".

Casimiro added that barges on the Zambezi were not in competition with Vale's planned new railway. All the logistical solutions "are complementary. They each enter at their own time, while production continues to increase".
Source: All Africa



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