New Coal Terminal Beira (NCTB)
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New Coal Terminal Beira (NCTB) is a proposed new coal terminal at Beira Port in Sofala province, Mozambique.
The terminal was originally floated in 2014 as having an anticipated coal export capacity of 10 million tonnes per annum and to be a 70-30 joint venture between the Indian company Essar Ports and the Mozambican state port and rail authority CFM. If constructed, the new terminal would more than double coal export capacity from Beira Port, where the Beira coal terminal established in 2012 by mining giants Vale and Rio Tinto already has the potential to export up to 6 million tonnes of coal annually.
In August 2017, Essar Ports announced it had signed a 30-year concession agreement with the Government of Mozambique to develop a new coal terminal by up to 20 million tonnes a year in two phases, each of 10 million tonnes per annum.[1]
It is primarily expected to serve as a coking coal terminal and will substantially grow Mozambique’s coking coal exports to India.[2]
Location
New Coal Terminal Beira (NCTB) is proposed in Sofala province, Mozambique.
Background
In April 2014, the Indian multinational conglomerate Essar Ports announced that it was seeking shareholder approval for a new US$25 million coal terminal at Beira port, with an annual production capacity of 10 million tonnes.[3]
The new terminal, officially known as NCTB (New Coal Terminal Beira), would be a joint venture between Essar Ports (70% stake) and CFM, Mozambique's port and rail authority (30% stake). In August 2014, the Mozambican government officially laid out the terms of its concession for the new terminal, which would be issued on a DBOOT (design, build, own, operate and transfer) basis. Under the terms of the agreement, Essar would have the right to design, build, and operate the terminal for a 30-year period before handing over management to the Mozambican government.[4]
In January 2018, Essar Ports confirmed its intention (previously announced in August 2017) to develop the New Coal Terminal Beira by investing US$500 million in the port in conjunction with expansion plans at its Hazira power plant and Salaya power plant in Gujarat state, India.[5]
It is primarily expected to serve as a coking coal terminal and will substantially grow Mozambique’s coking coal exports to India.[2]
In April 2022, the Economic Times reported that the NCTB deal was halted due to insufficient financial support from banks, as the investment failed to align with their environmental, social, and governance (ESG) goals.[6] It has been more than seven years after signing of the deal by September 2024.
Project Details
- Operator: Essar Ports and CFM (Portos e Caminhos de Ferro de Moçambique)
- Location: Sofala province, Mozambique
- Annual Capacity (Tonnes): 10 to 20 million
- Status: Proposed
- Type: Exports
- Coal source: Mozambique
Articles and resources
References
- ↑ Essar Ports, "Essar Ports signs concession agreement with Mozambique government to develop new 20 MTPA coal terminal in Beira Port", Media Release, August 4, 2017.
- ↑ 2.0 2.1 "New coal terminal planned for Beira could be a gateway to the east", Engineering News, February 2, 2018.
- ↑ "Essar Ports seeks shareholders’ approval to invest in Mozambique’s Beira coal terminal", The Hindu Business Line, April 1, 2014.
- ↑ " Moz government passes law for new Beira coal terminal", African Cargo News, August 4, 2014.
- ↑ "Mozambique: Essar Ports Still Planning to Invest in Beira", All Africa, January 8, 2018.
- ↑ "Essar Port’s planned coal terminal in Mozambique sails into troubled waters", Infra from the Economic Times, April 25th, 2022.
