Protest in Mozambique blocks coal train line

AFP reports about 500 protesters blocked a coal train line in Mozambique in a dispute with Vale over housing.

“Police in Tuesday’s incident detained 14 of the protesters, who were angry about what they say is low-quality housing Vale built for them after they had to make way for its coal mine in the country’s northwest.”

About 980 families were moved from the area and taken to Cateme where Vale built houses, schools, a police station and a clinic, reports AFP.

Vale in November approved a $6 billion expansion of Moatize to lift output to 22 million tonnes per year from the 11 million tonnes it expects to mine initially. First production from the expanded mine is forecast for the second half of 2014.

Mozambique’s Tete province is believed to hold one of the world’s largest untapped coal reserves that has been compared with Australia’s coal-rich Bowen Basin. Mozambique suffered a 15-year long civil war that ended in 1992 and remains one of the poorest countries in the world, but the ex-Portuguese colony 7% economic growth this year is forecast to accelerate thanks to mining and infrastructure spending.