Macarthur mining company ponders coal mining projects in Mozambique

2 March 2007

Melbourne, Australia, 2 March – Australian mining company, Macarthur Coal is looking at projects in Mozambique, amongst other countries, in order to increase its reserves, the company’s chairwoman Nicole Hollows said in Melbourne Thursday.

“Mozambique has extremely large coal reserves, as does Mongolia, and these are countries where we plan to go,” Hollows said in a press conference, adding that the company had “looked at” investment opportunities in Mozambique.

Macarthur Coal is responsible for a fifth of the world’s total coal exports and, similarly to other mining companies, is facing increasing difficulties in finding available mining resources, due to intense competition between sector companies.

The Zambeze basin, in central Mozambique, is currently the focus of the country’s coal mining projects, including Brazilian giant Companhia do Vale do Rio Doce (CVRD), in Moatize, with estimated reserves of US$2.5 billion.

This mines, which will have its own export terminal at Beira port, is expected to produce some 26 million metric tons of coal per year, from 2010, making it the largest of its kind in the southern hemisphere.

A consortium made up of South African companies Belde and Central African Mining and Exploration Company is also prospecting the same 67,000-hectare area. (macauhub)