Brazilian mining giant Vale has temporarily ceased shipments from its mines in Mozambique after a train that was carrying coal from its Moatize mining complex came under fire.
The train, destined for the export terminal at the port of Beira, in Sofala province, was travelling from the mine in Tete province.
Go deeper with GlobalData
During the attack, the train driver was injured.
Some sources are blaming the attack on former rebel group Renamo; however, the group has denied any involvement.
Speaking about the incident, Vale officials noted that the attack has not affted mining at Moatize, and that there are enough inventories at port to continue shipping coal out of Mozambique.
The company has suspended operations on the line temporarily to facilitate the investigations.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataSaid to be the biggest destination for Vale’s investments after Brazil, Mozambique receives 22% of the company’s capital expenditures.
Through 2015, the mining company intends to spend $2.07bn to dig a second coal pit at Moatize, with further plans to complete its $4.44bn logistics corridor to the Nacala port by the end of 2014.
In FY 2013, Vale produced 3.82 million metric tonnes of coking and thermal coal, representing an increase of 1.3% against the same period in 2013.
.gif)
