Coal India may buying majority stake in railway project in Mozambique

Kolkata – State-run Coal India is looking at the possibility of taking majority stake in a railway project in Mozambique, which will help the world’s biggest coal miner transport coal from its mines to the nearest port.

Although there is a railway link between the proposed Coal India (CIL) mines in Mozambique and the nearest port, frequent rake derailments have raised concerns over its stability. The line connects central Mozambican Port of Beira along the Sena railway. The Sena line runs for 575 km from the inland City of Tete (in the province of the same name; Moatize is near by) to Beira.

More than 24 trains run on the line every day, carrying coal for Vale, Rio Tinto and Jindal, which operate coal mines in the Moatize district of Tete. CFM, which is also the country’s ports company, is investing some 164 million in increasing the capacity of the Sena line from 6.5 million tonne a year (Mt/y) to 20 Mt/y…

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