Monday, September 28, 2009

Coal of Africa in discussions on Maputo rail corridor

September 25, 2009

Coal of Africa on Friday confirmed it is in talks with Transnet Freight Rail about the possibility of a public-private partnership on the Maputo rail corridor.

The JSE-listed coal mining and development company said its export capacity via the Matola terminal in Maputo was currently one million tons per annum.

This was expected to rise to three million tons per annum by late 2010 with further potential to reach 13 million tons per annum following an additional 10 million tons per annum expansion via the creation of a dedicated coal export terminal.

"Although terms and conditions have yet to be finalised, Transnet and Coal of Africa are committed to the process, and are exploring all options to ensure a solution is found that will meet the overall objective of facilitating the use of the Maputo corridor as a viable export route for coal producers, and an alternative to the Richard's Bay Coal Terminal," the company said in a statement.

At the Coal Trans conference held in Johannesburg earlier this month, Transnet Freight Rail's general manager Fuzile Magwa said increasing coal exports through the Matola terminal in Maputo was "a critical growth area".

Source: Sapa