The share was purchased from the Mozambican group Insitec. SDCN holds a 51% controlling share in the Corredor de Desenvolvimento do Norte (CDN) and the Central East African Railways (CEAR) railway concessions.
The CDN holds the concession for the 872km of railroad connecting the rail border post of Entre Lagos with the Port of Nacala. CEAR is the concession holder for Malawi's railway system. The two railway systems connect near to Moatize. During the first phase, set to commence during the first-half of 2011, Vale will transport its coal along the Linha do Sena railway to the Port of Beira.
During the second phase of the project, and CDN railway system will provide an alternative transport corridor for Vale's coal. Vale will in the meantime invest in expanding and improving the Moatize - Nacala logistics corridor.
Meanwhile, the Mozambican government's Water Supply Investment and Assets Fund (FIPAG) has signed a memorandum of understanding with Vale for the improvement of water access in the province of Tete, Aim News has reported. Vale is currently developing a coal mine in the Tete district of Moatize, and will soon require a reliable and sufficient supply of water to support its activities.
Over the next two years, the two partners will formulate a master plan that will set-out their shared strategy of the expansion of the water network in Tete.
Source: Agência de Publicidade
