Essar Ports is in the process of seeking approval for plans to invest up to US$25 million in a joint venture to develop a coal terminal at Beira Port, Mozambique.
The ‘New Coal Terminal Beira’ project (NCTB) would be a joint effort shared between Essar Ports as well as the Port and Rail Authority of Mozambique.
NCTB would involve the construction of a new facility with space to handle 10 million tonnes of coal per year, with the possibility of further expansion dependant on the availability of cargo.
Essar now seeks the approval of its shareholders to begin investing in the project, with a corporate guarantee of $10 million needed in advance, on behalf of the joint venture.
The company has sought this approval via a postal ballet that asks that the investment be made “either directly/through a subsidiary/intermediate company for an amount not exceeding $25 million”
The project has already secured a letter of intent from the ministry of transport and communications, granting a long term concession for the development of the new terminal.
Coal deposits in the Moatize region of Mozambique are estimated to be around 27.6 billion tonnes; three percent of the world’s total coal reserves.
As such, mining giants such as Rio Tinto and Vale have already shown their interest in regards to the new development.