CIL to buy major stake in Mozambique railway project

State-run Coal India (CIL) is considering possible stake buy in a railway project in Mozambique that helps the world's biggest coal mining company to transport the coal from its mines to the nearest port. Although there is a railway link between the proposed CIL mines in Mozambique and the nearest port, frequent rake derailments have raised concerns over its stability. The line connects central Mozambican Port of Beira along the Sena railway. It runs for 575 km from the inland City of Tete to Beira. More than 24 trains run on the line every day, carrying coal for Vale, Rio Tinto and Jindal, which operate coal mines in the Moatize district of Tete. A key phase in this programme — construction of passing loops at 25 of the 31 stations on the line — has begun. The work is being carried out by a Portuguese consortium of Mota-Engil and Edvisa (part of the Visabeira group). CIL may take a stake in this line to facilitate transportation of coal, which its mines produce. CIL executives, however, clarified that the proposal is at a "very preliminary stage".