Wednesday, September 09, 2009
Moatize coal mine - helping put Mozambique back on the map
Reported by Jaycee Krüger in South Africa
Brazilian resource giant Vale is pushing forward on development of the $1.3bn Moatize coal mine in Mozambique and expects to start production of coking coal for export late 2011. Vale GM Finance Fabio Bechara said at the Coaltrans South Africa conference being held in Sandton, South Africa that the initial box cut for the open cast mine would start in the second quarter of 2011.
Initial earthworks and civil construction on the coal preparation plant are underway following completion of the detailed engineering studies which took place in the year to end-June. Some 3,500 workers were currently on site at the project while the relocation and resettlement of some 5,000 local people affected by the mine development was also underway.
The port of Beira will handle all the phase one exports but that the port of Nacala would be required to handle export volumes above those levels. The rehabilitated line will be able to transport between 6mt and 8mt of coal annually which is clearly not enough for Vale's long term requirements as well as other potential coal producers in the Moatize region.
Brazilian resource giant Vale is pushing forward on development of the $1.3bn Moatize coal mine in Mozambique and expects to start production of coking coal for export late 2011. Vale GM Finance Fabio Bechara said at the Coaltrans South Africa conference being held in Sandton, South Africa that the initial box cut for the open cast mine would start in the second quarter of 2011.
Initial earthworks and civil construction on the coal preparation plant are underway following completion of the detailed engineering studies which took place in the year to end-June. Some 3,500 workers were currently on site at the project while the relocation and resettlement of some 5,000 local people affected by the mine development was also underway.
The port of Beira will handle all the phase one exports but that the port of Nacala would be required to handle export volumes above those levels. The rehabilitated line will be able to transport between 6mt and 8mt of coal annually which is clearly not enough for Vale's long term requirements as well as other potential coal producers in the Moatize region.
The 575km Sena/Beira railroad is being upgraded to handle the anticipated initial export levels. The rehabilitation of the Sena/Beira line had 150kms to go as of end-June and Bechara estimated it would be completed by the first quarter of 2010.
Access to Nacala, 1000km away is complicated because the railway line will have to cross neighbouring Malawi to reach the port situated in northern Mozambique. Bechara said the Nacala corridor is a very important solution for the future of the Moatize coalfield where they are not the only company planning to develop coal mines. The Sena/Beira line has limited capacity and we will need Nacala in about 5 years time.
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