Sao Paulo, Brazil, 16 Oct – Mining company Companhia Vale do Rio Doce (CVRD) will invest US$ 97 million in its coalmining project at Moatize in Mozambique’s northern province of Tete, Brazilian media reported Monday.
A CVRD source told Macauhub in Sao Paulo the financial resources for the project will be released after viability studies on the venture are concluded.
With total investment of US$ 1.398 billion, the Moatize mine should begin operating in the first quarter of 2011.
In July, the Mozambican government officially awarded CVRD the operating concession for Moatize, with estimated reserves of 2.3 billion tons, for 25 years.
The Brazilian mining firm aims to extract 11 million metric tons of coal per year, with 8.5 million tons being coking coal for use in the metal industry and 2.5 million tons of thermal coal for use in power stations.
In its 2008 budget, CVRD forecasts total investment of US$ 11 billion and the implementation of more than 30 projects.
The non-ferrous mineral sector will receive most of this investment (33 percent or US$ 3.6 billion) and nickel and coal ventures will benefit from a total US$ 390 million (3.5 percent) of the Brazilian mining firm’s investment. (macauhub)