Brazil’s Vale do Rio Doce says Moatize has 2 billion tons of coal

29 November 2006

Maputo, Mozambique, 29 Nov – The Moatize coal mines in central Mozambique, have a potential of 2 billion tons and a useful lifetime of 35 years, according to a study by Brazil’s Companhia do Vale do Rio Doce (CVRD), the main company interested in mining the reserves.

CVRD published the results of its feasibility study Tuesday in Maputo at the beginning of its discussions with the Mozambican government on the coal potential of the Moatize reserves, in Tete province, located some 1,000 kilometers from the country’s capital.

According to information from CVRD director, Galib Chaim, the company took two years to carry out the study and invested US$30 million.

The information gathered by CVRD showed that Moatize could have an annual production capacity of 12 million tons of saleable coal.

Other products that can be extracted are coke, for the metals industry, as well as high-calorie coal, for producing electricity.

The reserves found by CVRD at Moatize can be mined for 35 years, or 10 years more than the maximum concession allowed by Mozambique mining laws.

As well as the existing potential and annual production capacity, the study also assessed the quality of the product, the needs of the transport system for distributing the coal, the social and economic impact of the development, amongst other issues. (macauhub)