The Nacala Integrated
Logistics Corridor (CLN) hopes to move nine million tonnes of coal this year
from the Moatize coal basin in the western Mozambican province of Tete to the northern
port of Nacala-a-Velha.This coal is carried along a new railway, some 900
kilometres long, from Moatize to Nacala-a-Velha which crosses southern Malawi.Speaking
at the signing of addenda to the Nacala Corridor lease contracts between the
government, CLN and the Northern Development Corridor (CDN, which is
responsible for the older Nacala port, on the opposite side of the bay to
Nacala-a-Velha), CLN chairperson Renato Torres said that the amount of coal
moved to Nacala-a-Velha could reach 14 million tonnes in 2017 and the maximum
capacity of 22 million tonnes a year in 2018. The coal comes from the giant
open cast mine in Moatize operated by the Brazilian company Vale. CLN was
initially set up by Vale (with 80 per cent of the shares), and by the
Mozambican publicly owned ports and rail company, CFM (with 20 per cent). Subsequently,
Vale sold part of its holding to the Japanese company Mitsui.The addenda to the
lease agreements seek to allow CLN to mobilise the further foreign investment
(put at three billion US dollars) needed so that the railway and port can reach
their maximum capacity.
A statement from CLN
declared “we have strengthened our commitment to the development of the region
and to the importance of this project for the integration not only of the
centre and north of Mozambique, but also as an important link for connecting
neighboring countries, such as Malawi and Zambia, to a deep water port in
Nacala. These countries will benefit from improvements in the rail facilities”.CLN
believed that, with the new investments, Mozambique will be able to compete on
a footing of equality with other countries in the export of minerals. “The
state-of-the-art technology employed in the Nacala Corridor plus the use of
trains of large capacity will make the coal from Tete highly competitive on the
international market”. The coal trains running between Moatize and
Nacala-a-Velha are the longest in Africa, with four locomotives and 120 wagons.
Unlike Beira, the other port used by Vale to export coal, Nacala-a-Velha does
not need to be dredged. The port can receive ships of up to 180,000 tonnes, and
since coal exports began in January 48 ships have picked up coal from the port.
Transport Minister
Carlos Mesquita told the ceremony that the conditions now exist to increase
coal production at Moatize, particularly in light of the recent improvement in
coal prices. The Friday signing follows a decision in principle by the
government in June that CLN and CDN should be authorized to contract loans of
up to three billion dollars. Of this sum, 1.9 billion will be invested in
Mozambique, and the rest in Malawi. The agreement does not create any financial
obligation on the government, since the risks of the operations will be the
responsibility of CLN, CDN and their shareholders.
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