Moz seeks Chinese loan for Nacala upgrade

The Mozambican government seems to be hedging its options by applying for a US$1.5-bn loan from the Chinese government to upgrade the port of Nacala in the Nampula province. Mozambican planning and development minister Aiuba Cuereneia told Mozambican television that negotiations were under way with the China Development Bank for the loan. This has led to some speculation over government plans for the port. Brazilian mining company Vale earlier announced that it was to invest US$5 bn in the deep water port, along with a rail system linking the port to the Moatize region in the Tete province. Vale has started mining coal in Moatize, which is currently being exported through Beira along the Sena rail link and by road. Volumes are, however, expected to grow too large for the port to handle as other mines in the region come on stream. “The government also plans to build a railway line from Moatize to Nacala to encourage steelmakers to set themselves up in the region,” the minister said in the interview. Cuereneia said the government initiative would not clash with the Vale plans, but did not go into detail.