Indian Company Plans Iron Ore Terminal at Beira

14 June 2011

London — The Indian conglomerate Essar Global is planning to build what could be the world’s longest slurry pipeline from its iron mines in Zimbabwe to the Mozambican port of Beira, according to the financial services company “Securities Africa”.

Essar’s plans include building a terminal at Beira to handle up to 20 million tonnes of iron ore exports a year. There are also reports that the company is considering building a coal terminal at Beira capable of handling 20 million tonnes per year.

Essar’s director for Africa and the Middle East, Firdhose Coovadia, gave details for the Beira terminal at the Africa Iron Ore Conference in Cape Town, South Africa, last week.

In March, Essar Africa Holdings entered into an agreement with the Zimbabwean government to revive the state-owned Zimbabwe Iron and Steel Company (Zisco).

Essar agreed to take on the debt owed by Zisco and to invest about 750 million US dollars in reviving the company, in return for gaining 54 per cent ownership of the company. As part of that deal Essar gained access to huge reserves of iron ore.

Over the last five years there has been a 400 per cent increase in commercial relations between Africa and India.

However, the expansion of Indian commercial interests in Africa does not only reflect the continued economic growth of the country.

An article in “The Economist” in May highlighted the visit of Prime Minister Manmohan Singh to the African continent, and argued that the Asian country is not only after the continent’s raw materials, but also seeks African support for a permanent seat for India on the United Nations Security Council.

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