Value from Vale: Malawi to earn USD 15 million annually

Value from Vale: Malawi to earn USD 15 million annually

Last month, we blogged about the USD 1 billion investment by the Brazilian mining company, Vale SA, into Malawi’s railway infrastructure. The project is set to link Mozambique’s coal producing region Tete to the Nacala port by railway, which will cut across the south of Malawi. Malawi is expected to receive USD 8 million per year in concession fees.

Last week, Malawi’s Minister of Transport and Transport Works, Sidik Mia, also explained that, as reported by The Daily Times,

These are the agreed terms that we have put forward but it would increase as the need for transportation of their cargo especially coal increases. That means year by year it will be increasing up to five years of its use which means the taxes are likely to be more than double by the end of the concession contract. Apart from that [the concession fees] there are also taxes which translate to about US$15 million in the first year of movement.

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5 responses to “Value from Vale: Malawi to earn USD 15 million annually

  1. Pingback: Malawian Government and World Bank Launch Mining Governance and Growth Support Project | Mining in Malawi·

  2. Pingback: Rio Tinto’s Transport Woes in Mozambique May Benefit Malawi | Mining in Malawi·

  3. Pingback: Malawi Broadcasting Corporation’s Video on Vale’s Investment in Railway Rehabilitation and Construction | Mining in Malawi·

  4. Pingback: Resolution on Lake Malawi Border Dispute not expected until September 2013 | Mining in Malawi·

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