Coal, an untapped commodity in Mozambique’s Tete city

 Mozambique’s Tete City, with its untapped coal reserves estimated at 23 billion tonnes has a logistical nightmare in moving its precious commodity. Moving it out and getting the coal to port is a headache with trucks queuing to cross the bridge that spans the Zambezi river in this northern city of Mozambique.

Countries like China, Brazil, India and Australia have invested in Mozambique. China invested over five years and last August signed a five-year deal. Investments include Brazilian mining giant Vale, and Australia’s Riversdale, with 24 percent owned by India’s Tata that have invested 1.5 billion dollars. Coal wealth is not a new discovery but being one of the poorest countries in the world, Mozambique is recovering after nearly two decades of civil war and has opened its territory to nations and companies seeking mineral resources.

This city located in a remote corner of the country was taken by surprise and thousands of Mozambicans flocked there in the past five years. Due to the rapid and sudden development the population has grown significantly. Deputy-mayor Arnaldo Morais Charimba said: “Because it was so quick, Tete was not ready”. Around the city, roads and railways are being reconstructed and the existing 720-metre bridge was meant to reopen last December but unfortunately it did not open on the proposed date. The Sena railway line was partly reopened last year and later this year the train is expected to carry six million tonnes of coal from Vale and Riversdale to Beira. When production starts in six months delays at Beira may stall exports while mines are ready. Countries are exploring other ways to get their cargo out of the country with production expected to triple in a few years.

No reconstruction work has started on the old terminal, while another terminal is planned for later and so an atmosphere of development is not necessarily being felt. “If the port is not ready, there is no other way to get the cargo” says Fanoe.


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About Us Insight Group PLC is a leading private investment company based in the thriving city of Cape Town, South Africa. With offices also located in Mozambique, Gambia and the financial hub of Hong Kong; Insight Group PLC is perfectly positioned to provide clients with investment opportunities and expertise unsurpassed in today's marketplace. We take great pride in our ability to provide our clients with quantifiable confidence in everything we do. Our ability to achieve this and meet the varying needs of all of our clients stems from the fifty years of experience in the financial, media, commodities and property sectors of those leading the organisation's success. Chairman of Insight Group PLC, Alfonso Rivera Revilla, is a respected Accountant and Lawyer in Europe with over 25 years of experience in working with high-end investors who want to get the most out of their personal finances and their businesses: "In these difficult economic times, it is critical to protect your wealth. Traditional strategies, such as high interest rate accounts, no longer give people a worthwhile return. At Insight Group PLC, we're excited about the fact we offer investment opportunities that other's can't - including the big banks and funds. We personally seek the most competitive investment options for our clients and put them in touch with our industry experienced and respected Wealth Management Specialists (click here if you'd like to work for us). "We are confident in everything we do, contact us to share in that confidence and to reap the rewards." View all posts by Insight group PLC

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