Logistics Constrain Vale’s Moatize Operations

Multinational Brazilian miner Vale said coal production from its surface mine in Moatize, in the western Mozambique, dropped during the third quarter to 624,000 metric tons (mt) of metallurgical coal and 365,000 mt of steam coal from the 728,000 mt of met coal and 390,000 mt of steam coal produced in the second quarter. Vale hoped to grow production to 11 million mtpy. In 2014, it intends to ramp up production to 22 million mtpy. Unfortunately, the Sena railway line will not have the capacity to transport Vale’s production, let alone the coal produced by other companies in the region. Year to date, production is a little more than 3 million mt.