Coal production at Mozambique’s Moatize concession, will begin in 2011

3 November 2009

Maputo, Mozambique, 3 Nov – Mining activity at the Moatize coal concession in Tete province, will begin in 2011, said Roger Agnelli, the president of Brazilian company, Vale, who was in Mozambique last week.

Quoted by the Notícias newspaper, in Maputo, Agnelli said that Vale had already invested US$345 million in the Moatize project, a figure which should increase to US$500 million by the end of the year.

“The structure is practically in place, next year the machines should arrive so that between March and April 2011 production can begin,” said Vale’s president.

Roger Agnelli, speaking to journalists moments after meeting the President of the Republic, Armando Guebuza in Beira, was equally satisfied with the fact that, until now, the schedule for carrying out the mining project has been “closely followed.”

In the first year of operations, the Vale mines will produce around 11 million tonnes, a figure that should rise to 24 and 40 million tonnes in subsequent years.

Most of the coal will be put on the international market, with Brazil being one of the main consumers.

Given the limitations of the Sena railway line, the possibility of the coal being exported via the port at Nacala is once again on the cards, which would include the construction of a railway line from Moatize to the Northern Corridor.

The Moatize project includes the open-air exploration of the coal mine for a period of 35 years, with annual production estimated at 12 million tonnes per of coal products (metallic and thermal coal). The main markets will be Brazil, Asia, the Middle East and Europe, traditional consumers of this product, as well the domestic market, including the supply of a power station to be built as part of the project. (macauhub)