Mozambique investment

In anticipation of much bigger coal exports in the near future, Mozambique continues to build rail and port infrastructure.

Mega rail projects, with an eye on exports to Asia, have not been stalled by the global economic slowdown.

Massive declines in international coal prices are hitting African producers very hard.

The profits of Mozambican rail and port operator Portos e Caminhos de Ferro de Moçambique (CFM) have jumped by a quarter over the past six months, continuing a recent trend. CFM’s total operating profit for financial year 2014-15 was MZN2.625B (US$75.2M), a rise of 41% on the 2013-14 figure. Apart from coal, the company also transports aluminium and grain. This contrasts sharply with the experience of most other stateowned rail and port companies in Sub-Saharan Africa, which generally rely on st

International Coal Ventures (ICVL) has begun exporting coal from its Benga mine in Mozambique to India. The metallurgical coal was shipped to Visakhapatnam in Andhra Pradesh to supply the Steel Authority of India. The state-owned Indian company completed its purchase of a 65% stake in Benga, plus 100% in the Tete East and Zambeze projects, for US$50M from Rio Tinto in October, leaving fellow Indian firm Tata Steel with the remaining 35% equity in Benga.

As Bulk Materials International went to press, it was being reported in India that Rio Tinto had completed the sale of the Benga project and other coal assets in Mozambique’s Tete Province to a consortium of Indian coal mining firms, called International Coal Ventures Ltd (ICVL).