[miningmx.com] — ECCA Group, which represents small scale coal mining enterprises in South Africa and Swaziland, is the latest organisation to float plans for an alternative coal terminal for Mozambique.
Fleur Honeywell, formerly MD of HCI Khusela Coal, told delegates at the Coaltrans Mozambique conference that the terminal was fully-funded, would cost about R300m to develop, and had the support of transport utility companies Transnet and CFM of South Africa and Mozambique respectively.
It is one of several plans for a terminal just in the Maputo area while Rio Tinto, Mozambicans Minas de Revuboe, and Ncondezi Coal, a UK-listed coal exploration firm, are investigating building a much bigger terminal and rail line from the Tete province in Mozambique to a coastal point, possibly midway between the undeveloped Nakala deepwater port and Beira.
Honeywell said the concept was to provide an export point for emergent black economic empowerment companies, and junior miners in Swaziland, producing B grade coal.
“The idea is to complement Matola [coal terminal or TCM] rather than compete with it,” said Honeywell. “There is a substantial demand for B grade coal, especially among Indian power producers who can burn it,” she said.
ECCA Group had the support of investment banks but was still on the lookout for additional funding. “You can’t have enough funding,” said Honeywell.
In addition to the terminal, the initiative aimed to buy dedicated rolling stock which would be managed on the CFM infrastructure with TFR. CFM would also own the rolling stock, Honeywell said.
Of the capital cost, half would be towards upgrading rail lines in Swaziland, but Honeywell believed some branch lines owned by TFR were under-utilised and these could be put to good use for BEE companies.
She declined to specify where the terminal would be situated exactly, but added there were three potential sites all within the Maputo port area.
The idea has its critics. “It probably won’t happen,” said one Coaltrans delegate who wished to remain anonymous. “There are about six ‘alternative’ terminals apparently underway in Maputo, he said.
South African logistics company, Grindrod, controls the Matola Coal Terminal which has recently upgraded capacity to 6 million tonnes/year (Mtpa), and has plans in motion to expand to 20Mtpa between 2014 and 2018, depending on how that project is phased.
