Government Guaranteeing Conditions for Mining Companies (

Mozambican Transport Minister Carlos Mesquita said on Wednesday that the government is establishing all the necessary conditions to guarantee that mining companies are able to move the coal they extract from the Moatize coal basin, in the western province of Tete, to the sea.
The companies have long expressed concern at logistical inadequacies. The railway from Moatize to the port of Beira, even with the substantial improvements that have been made, could not cope with the scale of coal exports forecast for the near future.
The Brazilian mining giant Vale has circumvented this problem by building a new railway, across southern Malawi, to link Moatize with a new coal terminal at Nacala-a-Velha on the northern coast. There are also plans to build a line to a new port at Macuse in Zambezia province.
Speaking to reporters after a visit to the premises of the publicly owned port and rail company, CFM, Mesquita said the government “has created all the conditions, in terms of legislation, and through offering mining concessions, so that the companies may establish themselves”.
“Right now, the Sena Line has been practically rehabilitated, and its capacity has almost doubled”, he added,
For some of the mining companies, the real problem is not Mozambican logistics, but the collapse of the world market price for coal. “If the international price of coal has fallen, you can’t blame Mozambique”, said Mesquita. “If the price of oil falls, Mozambique can’t be blamed. We are doing our work. We met recently with some of the mining companies, and they confirmed that we are doing our part”.
The government was pleased that CFM had surpassed by 18 per cent its target for rail cargo traffic in 2014. But Mesquita thought it was possible for the company to do much better. “We have go out to the market and develop more aggressive marketing”, he declared.
He was also impressed at the number of projects CFM had presented during his visit. “Some of these are anchor projects to guarantee implementation of other types of business activities, which will improve the business environment in Mozambique, and will be good for the Mozambican economy”, Mesquita said.
Source: Business