Bloomberg quoted London based Securities Africa said Essar Global will build a terminal in Mozambique port city of Beira to handle up to 20 million tonnes of iron ore exports a year from Zimbabwe.

The London based brokerage citing Essar Africa Director Mr Firdhose Coovadia said the Indian company will also build a slurry pipeline to transport slurry from its Manisi and Ripple Creek mines to the port.

Essar did not say how much it would spend building the terminal and pipeline and Mr Coovadia said that some of the plans we have are firm, but others are non firm.

Securities Africa said Essar plans to export iron ore slurry may conflict with government policy in Zimbabwe where authorities are encouraging miners to add value to minerals before exporting them.

According to Zimbabwe industry minister Mr Welshman Ncube that Essar Group, through its Essar Africa Holdings Ltd Unit took control of 54% of the Zimbabwe Iron and Steel Corp. March 9 in a deal worth about USD 750 million. Zisco also owns the Buchwa iron ore mine in Zimbabwe.

Securities Africa said Essar slurry pipeline from Zimbabwe to Beira could become the world biggest, surpassing a 396 kilometer long pipeline carrying ore from Essar Germano mine to the Hazira steel plant in Brazil.

(Sourced from Bloomberg)