Mozambique 29 July: No safe route to the sea
Good afternoon. Events over the last week have proven there is no fail-safe route for Vale to get its coal to the coast. After suspending exports along the railway to Beira following a shooting on Monday, one of the company’s trains crashed into a passenger coach on Wednesday on the new Nacala line.
SEE: Vale coal train hits bus on Mozambique’s Nacala line, killing three
Even if little is passing through them for now, the transport ministry has plans to upgrade Mozambique’s sea ports. Its ultimate aim is to have more Mozambican companies involved in the cabotage industry and to profit from the export of the country’s natural resources, when conditions in and outside the country improve.
SEE: Mozambique eyes role in inter-continental sea transport
Rare earth miner Kenmare’s plans to boost exports from its Moma mine could suffer an unexpected setback. The company recently recapitalised and now has cash on hand to boost output at the heavy sands mine, but the mountain gods may have other ideas.
SEE: ‘Holy mountain’ dispute could hit Mozambique miner’s expansion plans
Mountain gods are not the only powers that need to be appeased. With Mozambique’s peace talks on hold for 12 days, and a cease-fire not even top of the agenda, fighting in the centre of the country looks set to continue for at least the next two weeks.
SEE: Mozambique peace talks adjourned for 12 days
Have a safe weekend.