Coal news and updates

Last week Rio Tinto Coal Mozambique (RTCM), a subsidiary of global mining major Rio Tinto, reported that it had set a new monthly record for the transport of coal from its Benga mine in Tete province to the Port of Beira, in Sofala province. The quantity of coal involved came to 95 000 t and it was carried by 38 trains, running on the Sena railway line. The increased amount of coal despatched from Benga was the result of “continuing improvements which are being introduced on the Sena line”, RTCM coal supply chain director Carlos Galego told local media.

 

Late last month, the company announced that it had acquired four new locomotives and 110 wagons to haul coal from Benga to Beira. Of these, two locomotives and all the wagons had already been delivered, with the remaining two locomotives expected this month. “[T]his new rolling stock is intended to complement the improvements which are being introduced on the Sena line and will increase the transport capacity for RTCM coal,” he stated. The carrying capacity of the 575-km-long Sena line is being increased from its current 6.5-million tons a year (Mt/y) to 20-Mt/y. This work should be completed in February 2015.

 

In addition to the Benga operation, in which it holds a 65% share (the remaining 35% belonging to Tata Steel of India), which produces both coking (or metallurgical) and thermal coal, RTCM was awarded a mining licence for its wholly owned Zambeze project in August. It also has an exploration licence for its also 100%-held Tete East project. (The Zululand Anthracite Colliery, in South Africa, also falls under RTCM, which holds 74% of the operation.)

 

At the start of this month, the company revealed that it was evacuating the families of expatriate employees from Mozambique because of worries about the security situation. There have been sporadic clashes between armed members of the opposition Renamo party and the national security forces, particularly in parts of Sofala province. There has also been an increase in the number of kidnappings in the country’s main cities. “The safety of employees and their families is the number one priority,” said RTCM in a press release at the time. “RTCM’s operations continue as planned, including the shipment of coal.” It also affirmed that the withdrawal of the families would be a temporary measure.

 

Meanwhile, in its production report for the third quarter of this year, Brazilian major miner Vale reported that the ramp-up of production at its Moatize mine, in Tete, was being impeded by the limitations of the Sena line and Beira port. Moatize Phase 1 has a nominal capacity of 11-Mt/y. Actual output during the third quarter was 1 168-million tons, composed of 706 000 t of metallurgical (or coking) coal and 462 000 t of thermal coal. This was actually lower than the figure for the second quarter, which was 1 297- million tons (composed of 849 000 t of coking coal and 448 000 t of thermal coal). The decline in metallurgical coal output in the third quarter, in comparison to the second quarter, was 16.8%, but thermal coal saw a rise of 3.2%. For the first nine months of this year, Moatize metallurgical coal output was 6.4% higher than for the same period last year, while that for thermal coal rose by 23%.

 

Nevetherless, work continues on the development of Moatize Phase 2, which is expected to be commissioned in the second half of 2015. To date, $734-million of capital expenditure (capex) has been made for Phase 2, of which $278-million was during the first three quarters of this year. Total capex for Phase 2 for this year is programmed to be $381-million. The total cost for the complete development of this next phase of Moatize is budgeted at just over $2-billion.

 

 

Source: www.miningweekly.com