Mozambique: Trains carry 40% less coal to ship abroad

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Mozambique: Trains carry 40% less coal to ship abroad

2:03 CAT | 19 Nov 2020

File photo: Vale Mozambique / Expo Viva

Covid-19 cut 40% of the coal transported by rail from Tete mines to the port of Nacala in northern Mozambique in the third quarter, compared to the same period in 2019, the mining company said on Thursday.

Coal is Mozambique’s main export product, but demand has fallen sharply in Asian markets, reflecting the slowdown of the global economy.

In the third quarter, coal transport in the northern corridor stood at 1.3 million tonnes, representing a reduction of around 40% compared to the same period last year, Nacala Logistics said.

On the other hand, coal loaded onto vessels was 1.4 million tonnes, 37% down on the same period in 2019.

Nacala Logistics made a loss of $16 million (€13.5 million) in the quarter, even so, 41% better than expected due to the reduction in operating costs, it added, without further details.

“We need to prepare for the ramp-up of the coal operation in 2021,” said Fábio Iwanaga, Nacala Logistics’ chief financial officer, cited in the statement.

Source: Lusa