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Sena railway closure poses further problems for Mozambique’s coal industry

World Coal,

Reuters has reported that the Sena railway in Mozambique was shut on Tuesday 12 February due to heavy rains. The line is the only export route available to ship coal from the mines in Tete province to the export terminal at Beira.

The shutdown is another blow to the development of the country’s coal industry, which is already facing major infrastructure bottlenecks. Earlier this year, Rio Tinto was forced to take a US$ 3 billion write-down of its Mozambique assets partly as a result of infrastructure challenges, resulting in the resignation of Doug Ritchie, the executive responsible for the acquisition of the assets in 2011. Vale also had to scale back its output and export targets last year.

Edited from various sources by Jonathan Rowland.

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