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Tuesday, November 15, 2011

Ngwenya Mine iron ore to go by rail from January 2012 in Swaziland

Tuesday, 15 Nov 2011

As from January 20th 2012, iron ore from the recently opened Ngwenya Mine will be transported by rail to reduce road damage.

Mr Gideon Mahlalela CEO of Swaziland Railway said that there would be very minimal transfers made through the Mpaka road, a development expected to ease the much publicized negative comments regarding road damages that might be caused by the over 200 trucks that would transport iron ore to Mpaka and Mozambique, respectively.

Mr Mahlalela said the Swaziland Railway management was still considering whether they would use Sidvokodvo or Matsapha railway stations for this purpose. He added that "Currently, the Swaziland Railway management is looking into how it can load the iron ore much nearer either using the Sidvokodvo or Matsapha stations to reduce road damage. This arrangement was made because it would have been very expensive to create a new railway line to Ngwenya as we would have been unable to recoup costs in five to seven years."

He said that "However, if Salgaocar were to be given a new lease to dig the over 700 million tonnes of iron ore available in the area up to Pigg's Peak, we would construct the new railway line sooner."

His Majesty King Mswati III, senior management of Salgaocar Resources Africa, dignitaries and the public witnessed three Salgaocar trucks carry off the first consignment of mined iron ore dumps from the recently re opened Ngwenya Mine to Maputo. The iron ore will be sent to international markets via Salgaocar Mozambique Limitada through CFM, Mozambique's ports and railway company.

The newly re opened Ngwenya Mine operated by Salgaocar Swaziland was officially opened by the King about three weeks ago during an event also attended by Mozambican ministers, royalty, senior government officials and leaders in the county's business community. Ngwenya Mine was officially closed over 30 years ago before being re opened by Salgaocar.

In his address during the official opening, the King recalled that in the past years, he often received special visitors from the Ngwenya community who bitterly complained about its closure.

Salgaocar Swaziland is one of the first companies to pay a surcharge for using the country's roads. The company pays the ministry of public works and transport about USD 50 for every tonne of iron ore transported to Mpaka and Mozambique. This amount will be paid by Salgaocar for the next five to seven years of operation in the country, at least according to the company’s lease agreement.

The Swaziland Railway CEO said that the arrangement made by Salgaocar to pay a surcharge indeed attested that it was a good company and was in the country with noble intentions not to destroy, but also pay back for damages made to national resources. He added that "It is a first of its kind that a company will pay the ministry of public works and transport a surcharge for using the road. Most companies only pay the usual tax, but Salgaocar will pay an extra E350 for each tonne of iron ore transported."

He also quoted a number of companies that do not pay an extra tax charge for using the road, like sugar companies and many other organizations that use the country’s roads as part of their production processes.

(Sourced from www.observer.org.sz)

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