Brazil-based mining giant Vale has reduced its coal export forecast from Mozambique by 30 percent, due to heavy rainfall affecting mining activities in Tete Province in February, according to African Press Agency. Accordingly, the company now expects to export 3.4 million mt of coal from its Moatize mine this year, rather than the 4.9 million mt predicted before the flooding.
Despite the logistic problems it faces, Vale is forecasting coal production of 6.4 million mt in 2014 and 9.2 million mt in 2015. The company's plans to produce 22 million mt of coal per year by 2018 depend entirely on increasing export capacity, which means building new railways and port terminals.
As SteelOrbis previously reported, Vale declared force majeure on February 15 on a number of contracts for coal sales from Mozambique, due to heavy rainfall creating serious challenges to the Linha do Sena railway, thus impacting the transportation of the miner's coal products.