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Mozambique coal rail jeopardised by balking miners

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World Coal,

Thai Mocambique Logistica SA’s proposed US$2.8 billion railway to transport coal in Mozambique could fall through due to balking miners.

As reported by Bloomberg, in order to meet the in-service deadline, the company must secure financing next year. This will see the first freight trains transporting coal to ports by 2023.

Thai Mocambique Logistica SA Managing Director Jose Fonseca explained that “if it doesn’t start next year, then this project is dead.”

Mozambique relies heavily on coal as a source of revenue, so being unable to move forward with the project would damage the country’s economy.

Geologist Henrique Pinheiro stated: “A cost-effective, affordable and sustainable, new rail line such as the Macuse corridor will ensure that Mozambique coal will be competitive in the seaborne trade and survive the peaks and troughs of coal prices. But unless it comes into play soonest, the opportunity to finally secure the coal industry will be lost for a long time.”

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