Vale to Proceed with Coal Exports

22 February 2011 (Last Updated February 22nd, 2011 18:30)

Vale intends to proceed with exporting coal from its Mozambican project despite the delays in renovating the Sena railway line. The Sena line is the only existing railway line to transport coal from the recently discovered Tete coal basin, and is currently being rebuilt by Rites and Ir

Vale intends to proceed with exporting coal from its Mozambican project despite the delays in renovating the Sena railway line.

The Sena line is the only existing railway line to transport coal from the recently discovered Tete coal basin, and is currently being rebuilt by Rites and Ircon.

Vale has the right to export four million tons of coal through the Sena railway line. However, its working on alternative routes to handle their expansion plans.

Vale plans to produce one million tons of coal for export in 2011 and expects to increase its output to 6 million tons in 2012, 8.5 million tons in 2013 and 11 million tons in 2014.

Vale's coal processing plant and railway will be tested in May 2011 to enable the export of coal in late June or early July.

the company is also developing its Moatize project spending, $1.6bn in the first phase.

Vale is also planning to develop the Nacala railway line by 2013 to connect Vale's operations to the Mozambican port of Nacala through Malawi, to handle the coal exports affected by the Sena line.