Rio Mozambique Coal Deal Shines Light on Export Infrastructure Deficiencies

Bloomberg reported that the delays faced by Rio Tinto in their attempt to move into the Mozambique coal market underscores the depth of infrastructure and export problems that are widespread through the industry.

As quoted in the market report:

While finding coal in Mozambique has been a cinch, exporting it hasn’t. Rio’s plans have been stymied by the government’s refusal to allow it to barge coal down the Zambezi River and by the cost of accessing or building rail lines to a port on the east coast. The bottlenecks may scupper Mozambique’s bid to become one of the world’s top five coking coal producers and expand a mining industry that currently accounts for less than 5 percent of gross domestic product.

To view the whole Bloomberg report, click here.