Study presented by Brazil’s Vale do Rio Doce analyzed by Mozambican authorities

5 February 2007

Maputo, Mozambique, 5 Feb – The inter-ministerial technical commission organized by the Office for the Zambeze Region Development Plan (GPDRZ) concluded its analysis Thursday of the economic feasibility study of the Moatize mining project presented by Brazilian company Vale do Rio Doce (CVRD), officials said.

CVRD won the international tender for the Moatize concession in 2004 and, since then, has been carrying out technical and economic feasibility studies that were presented to the Mozambican government in November 2006 with a 60-day deadline for comments.

According to Mozambican daily newspaper, Notícias, the inter-ministerial commission, meeting at the tourist resort of Pequenos Libombos, Maputo province, analyzed the document as well as CVRD’s requests in terms of taxation for the implementation phase of the project, under the terms of the special regime for companies that invest in the Zambeze valley.

The next step for CVRD is to present a project development plan incorporating the suggestions and recommendations put forward by the commission.

State coal company Carbomoc, which used to mine Moatize, closed its doors when, during the civil war, the Sena railroad was destroyed preventing coal from being exported to foreign markets.

As well as exporting coal, CVRD has guaranteed it will build a 1500 megawatt coal-fired thermoelectric power plant in Tete and sell 15 percent of the coal it mines in Mozambique. (macauhub)