Vale downsizes Mozambique coal export forecast by 30%

SAO PAULO (Scrap Monster) : Brazilian mining major-Vale S.A has cut its coal exports targets from Mozambique by 30% owing to disruptions in activities owing to hostile weather conditions and prolonged labor unrests.

According to Vale, the total coal exports from Mozambique is now estimated to lower down to 3.4 million tonnes, reducing by nearly 30% from the earlier estimates of 4.9 million tonnes. The company states that coal shipments were considerably affected by bad weather and labor disruptions. Meanwhile, Vale forecasts an increased shipment of 6.4 million tonnes next year and 9.2 million tonnes in 2015.

Incessant rains and floods in the central Zambezi Valley had disrupted rail service for weeks during February. Vale had declared force majeure on a number of metallurgical coal shipments from Mozambique on February 15^th . Extensive rains had affected the Linha do Sena railway, which is the main transportation facility used for shipment of coal products in the region. The disruption of transportation facilities has cost the company a loss of at least 250,000 tons of coal shipments.

Last week, brickmakers had blocked the Sena railroads out of the mine with scrap metal and stones, temporarily halting the Vale coal shipments. Vale could resume its shipment of coking coal only after two days.