In addition Vitol and Grindrod will enter into a partnership (65% Vitol / 35% Grindrod) to combine their respective sub Saharan coal trading businesses.
Grindrod was awarded the concession to operate the terminal known as Terminal de Carvão da Matola (TCM) until 2033 with an option to extend the concession for a further ten years. To date US$70M has been invested in the refurbishment and building of infrastructure expanding the capacity of the terminal to 6 mtpa.
The dredging of the port channel was completed in 2011 allowing larger vessels up to Panamax size to enter the port contributing to the port’s competitiveness.
The Mozambique government, CFM and Transnet have aligned to promote the delivery of cargo by rail to the port which has seen tremendous improvement in rail delivery.
Demand for capacity at TCM continues to grow which led to the feasibility study for an expansion of capacity by 20 mt (phase 4) requiring an investment of approximately US$800M.
The expansion project involves excavation and land reclamation; resulting in a footprint of 120 hectares; the construction of two additional berths, a stockyard and railway infrastructure.
“Vitol is the ideal partner to assist us in the coal terminal in Maputo,” said Alan Olivier, Grindrod CEO.
“They have significant experience in building terminals and they are a reputable global trading business. Their strong balance sheet will further assist in the opportunity to offer junior miners capacity in the terminal.”
“We are delighted to have concluded this deal with Grindrod” said Bob Finch, head of coal trading at Vitol.
“Both parts of this transaction create opportunities to underpin a significant expansion of our coal trading business, which is an increasingly important part of Vitol’s global trading activity.”
The transaction is subject to approval from the Mozambican government.