SMIT Amandla Marine have agreed a R300m ($38.5m) three-year contract with Brazilian miner Vale in Mozambique for specialised export services out of the port of Beira, it was announced yesterday.

The black empowered marine services provider, SMIT Amandla diclosed that the contract is for the provision and maintenance of an offshore mooring buoy, covering coal transshipment, two vessels being a general purpose tug and support work boat, and technical and contractual management.

The company said this represented investment of about R60m ($7.7m).

The company indicated plans for Mozambique to become a major exporter of coking coal, with Vale holding two significant mining concessions. Export activities are scheduled to commence in June.

Smit Amandla said it would employ 40 South Africans for the operation, and would work with both Vale and the Mozambique government over skills transfer and training and development for that country’s nationals.

Legal Issues

The company has been at the centre of a legal dispute with black empowered investment holding company Sekunjalo Investments.

Charges had been laid against marine services company Smit Pentow Marine — the forerunner of Smit Amandla — by the Department of Agriculture, Forestry and Fisheries with the department demanding investigation into the  conditions under which a tender to maintain its ships was extended in 2005, seemingly without due process.

It said the extension was predicated on Smit Pentow Marine having a black economic empowerment partner.

Between 2000 and 2005, Smit Pentow Marine changed its name to Smit Marine SA. It later became Smit Dudula after an empowerment deal which did not last long. However, the contract was extended in 2005 when the new empowerment vehicle, Smit Amandla Marine, was introduced.