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.