Vale to haul coal by truck not railway from Moatize mine

Monday, 06 Jun 2011

Bloomberg reported that Vale SA will move coal by road and not rail from its USD 1.7 billion Moatize mine in northwestern Tete province.

Vale said that it ad planned to use rail transport but opted for trucks after the completion date for repair works to the Sena railway that serves the mine was pushed back to September from March.

Vale said on May 8th 2011 that it had started operations at the mine and will export coal through the central port of Beira.

The Indian group Rites and Ircon in 2004 won the contract to repair the Sena railway after the lines were extensively damaged during the southern African country's 16 years of civil war that ended in 1994. (sourced bloomberg)