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Rio Tinto PLC Among Main Bidders For Mozambique Rail Project-Reuters

Wednesday, 10 Apr 2013 03:27pm EDT 

Reuters reported that Mozambique has named miner Rio Tinto PLC as one of six preferred bidders for a new $3 billion railway and port development project to boost coal exports. The former Portuguese colony, which emerged from civil war two decades ago, boasts some of untapped coal reserves and is expected to become a key source of sought-after premium, hard coking coal used in steel making. Infrastructure bottlenecks have become a major headache for mining companies in Mozambique's coal-rich Tete province, with some projects delayed or put on hold due to problems of getting coal to port. Rio Tinto wrote down $3 billion of its Mozambican assets in January, partially because of infrastructure constraints. 

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