Mozambique government scrutinizes feasibility study on Moatize coalmining project

27 November 2006

Maputo, Mozambique, 27 Nov – The Mozambican government has set itself a two-month deadline to examine and comment on a study on the economic viability of the Moatize coalmining project, which was delivered to the Maputo authorities last week by Brazilian mining giant Companhia Vale do Rio Doce, officials said.

When the study was handed over last Friday, Maputo’s natural resources minister, Esperança Dias, and CVRD’s director-general in Mozambique, Galib Chaim, both declined to give details of the findings of the report, saying this information would be made public at a later date.

Dias said that the handover of the study by CVRD had met the conditions of an accord with the Maputo government giving the Brazilian company two years to carry out the report on the economic viability of the Moatize project.

The 2,500-page study contains reports on projected production levels, existing mineral resources, production quality, investment costs, necessary social developments, additional social improvements and logistical requirements including railways and ports.

The report also includes an environmental impact study on the mining project, as well as one on the planned nearby thermal power plant with a 1,500 megawatt generating capacity.

CVRD has already invested US$ 122 million in Moatize since being awarded the mining project and has spent US$ 80 million to carry out the present study. (macauhub)