4,500 employees and contractors in the country
US$4.4 billion planned investment in Nacala Corridor
In Cinyanja, the country’s official language, “Malawi” means “rising sun”
In order to have world-class logistics infrastructure to support its operations in Central and East Africa, Vale is investing to expand the capacity of the Nacala logistics corridor, which will transport our coal output in Mozambique.
The Nacala Corridor, involving total expected investment of US$4.4 billion, is a key element in the infrastructure needed to unleash the region’s potential. This project was made feasible by heavy investment in mining, showing the catalyzing role that the sector can play for economic development. The new corridor will benefit not just Mozambique and Malawi, but the neighbouring countries as well.
Within a broader scope, the development of economies of scale will reduce business costs, provide job opportunities and support small and medium suppliers of goods and services.
To sustain the expansion of Moatize coal mine’s capacity, Vale has also been investing in logistics infrastructure through the Nacala Corridor project. This involves restoring 682 km of existing railway track in Malawi and Mozambique, building a maritime terminal, and laying 230 km of new railway – 201 km connecting Moatize to Nkaya in Malawi, and another 29 km extending the railway to Nacala-à-Velha – giving a total length of 912 km.The greenfield stretches in Mozambique and Malawi are now 56% complete, and the first train is scheduled to come into service at the end of 2014, with a track capacity of 11 million metric tons per year. The restoration of existing stretches of railway will continue until 2016, when the capacity will increase to 18 million metric tons per year.
In December 2014, Vale informs that it entered into an investment agreement with Mitsui, whereby the japanese company will own 50% of Vale’s 70% equity stake in the Nacala Logistic Corridor (NLC). The transaction is essential for the continuity of our investment in Mozambique and Malawi as it provides the funding for the completion of the Moatize project and of the NLC.