Grindrod, through the introduction of Vitol, had established a relationship with one of the world’s largest trading businesses, Grindrod CEO Alan Olivier said.

“Vitol is the ideal partner to assist us in the coal terminal in Maputo,” he said.

“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.

“I believe our shareholders and customers will benefit, as through this transaction we have increased our capability to deliver on this strategic expansion project and we look forward to further developing our relationship with Vitol.”

Grindrod was awarded the concession to operate the Maputo terminal – which is known as Terminal de Carvao da Matola – until 2033 with an option to extend the concession for a further 10 years.

To date $US70 million has been invested in the refurbishment and building of infrastructure, expanding the capacity of the terminal to 6 million tons per annum.

TCM is strategically situated for the export of coal to international markets. 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.

Demand for capacity at TCM continues to grow, which led to the feasibility study for an expansion of capacity by 20Mt requiring an investment of approximately $US800 million. The expansion project involves excavation and land reclamation resulting in a footprint of 120 hectares. It includes the construction of two additional berths, a stockyard and railway infrastructure.

“We are delighted to have concluded this deal with Grindrod,” Vitol head of coal trading Bob Finch said. “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.”