MOZAMBIQUE SECURE LOAN FOR MOATIZE-MACUSE RAILWAY CONSTRUCTION

Mozambique secures loan for its moatize-macuse railway project which will also help the nation coal production sector.

Mozambique has secure a loan worth US2.7Billion from china for the construction of a 639 km-railway. Meanwhile it will transport coal from the mines of Moatize and Chitima in Tete. It will also transport new floating coal terminal off the coast at Macuse, Zambezia, just north of Quelimane.

The project will be launch in 2019 with completion date set for 2022. Meanwhile, the consortium is led by Thai Mozambique Logistica (TML) which won the the project in 2013, and holds 60% of the capital.

Coal price has double for the past two years. It has reach $100/tonne for thermal coal and $175/t for coking coal with most coal now currently  coming from outside the nation.

Mozambique railways (Caminhos de Ferro de Mocambique, CFM) and the Corredor de Desenvolvimento Integrado do Zambeze (Codiza) having 20% each. TML is the majority shareholder with 60%.

The company is getting its fund from Chinese capital through public banks targeting Africa.

 

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