The Indian company Damodar Ferro intends to resume the extraction of iron ore in Lalaua district, in the northern Mozambican province of Nampula, reports Monday’s issue of the Maputo daily “Noticias”.Mining at Lalaua was suspended a year ago because of declining iron ore prices on the world market. But a recent recovery in prices has encouraged the company to resume production.
Olavo Deniasse, the Nampula Provincial Director of Mineral Resources and Energy, told the paper that the establishment of an industrial unit to process iron ore was a further factor behind Damodar Ferro’s decision.He added that the company will negotiate terms for transporting the ore with the managers of the railway running from Moatize, in Tete province, to the port of Nacala-a-Velha on the Nampula coast. Trains carrying coal for export return to Moatize with their wagons empty. But Damodar wants to move the ore to Tete for processing.Achieving agreement on the transport issue “will be a great success”, said Deniasse, “since it will make operating the mine viable and will guarantee jobs in Lalaua”.The Damodar Ferro mine has the installed capacity to mine 75 tonnes an hour. From the start of its activities in 2009 until it interrupted production last year, the company exported about 23,000 tonnes of ore to China.