Brazilian company to build $1B railroad in Malawi

AP News

12/5/2012 11:42:37 AM - AP News

BLANTYRE, Malawi (AP) — Malawi plans to break ground on a $1 billion new railway line in the country to ferry both passengers and minerals through the nation.

A statement from the president's office Wednesday said the line would be built by Brazilian mining company Vale SA. Vale currently has operations in Mozambique mining coal and some of that mineral will be shipped through Malawi for the local market, as well as to export abroad.

Malawi's presidency said the project will create more than 3,000 jobs.

Mozambique's government now is considering a $2 billion port and railroad line project to speed the nation's coal exports to the rest of the world. Officials say that the improved railroad will connect to the planned railroad running through Malawi.