Brazil’s CVRD gets go-ahead for Mozambican coal mining project

3 July 2007

Maputo, Mozambique, 2 July – The government of Mozambique will officially hand over on Tuesday the concession to operate the Moatize coal mine to Companhia Vale do Rio Doce (CVRD) in the northern province of Tete, media reported.

CVRD, which beat off challenges from other mining giants like BHP Billiton and Anglo-American to develop Moatize, will now proceed with the project to operate one of the world’s largest coal mines, with estimated reserves of more than 2.4 billion tons.

Besides the financial bid made by CVRD, Maputo also took into consideration its technical proposals that included a feasibility study of the project’s mining, rail, port and power station aspects, as well as an annual production target of 21 million tons of coal.

CVRD reserved 10 percent of shares in the project for private Mozambican investors and also gave a 5 percent stake to the Maputo government. The Brazilian firm also pledged to make 15 percent of Moatize’ production available to supply national demand. (macauhub)