Rio de Janeiro, Brazil, 21 Oct – Brazilian mining company Vale plans to invest US$595 million of its investment budget for 2010 in the Moatize coal project, in Mozambique’s Tete province, the mining group said in Rio de Janeiro Monday.
In total, the Board of Vale approved a package of US$12.9 billion to support operations underway and promote the growth of the company by research and development and execution of projects in several countries around the world.
Of the investments approved for 2010, Moatize is the third biggest beneficiary after the Carajás project, in Serra Sul, with US$1.126 billion and Salobo with US$600 million.
The prospect, according to a statement from the company, is to continue investing in increasing production capacity of copper, coal and fertilizers, although iron ore and nickel are the company’s main business.
Taking into account the portfolio of projects, Vale plans to reach, by 2014, production of some 450 million tonnes of iron ore, 380,000 tonnes of nickel, 650,000 tonnes of copper, 30 million tonnes of coal, 3.1 million tonnes of potassium and 6.6 million tonnes of phosphoric rock.
For 2010, Vale projects to invest a total of US$892 million in its coal business in Mozambique, Australia and Colombia. Coal became part of Vale’s business portfolio in 2007, through the acquisition of assets in Australia, where with investments underway the company expects to reach a nominal production capacity of 4.8 million metric tonnes per year, as of 2011.
At the peak of production, the Moatize project is expected to have nominal production capacity of 11 million tonnes per year, of which 8.5 million tonnes will be metallurgical coal and 2.5 million tonnes of thermal coal.
As part of its investments in Moatize, Vale is building one of the biggest coal processing units in the world, with capacity to process 26 million tonnes per year.
Considering the reduced capacity of the Sena railroad, the expansion of the Moatize project depends on the approval of the project that includes construction of a new railroad linking Moatize to the Port of Nacala, in Nampula province, with an extension of approximately 200 kilometres, as well as a sea terminal in Nacala. (macauhub)