Vale Moçambique to start mining coal in Moatize, Mozambique

4 May 2011

Cape Town, South Africa, 4 May – Vale Moçambique is due Sunday to start mining coal in Moatize and initial production is expected to total 1 million tons per year, Mozambique’s natural resources minister said in Cape Town, South Africa.

The minister, who travelled to the city to take part in the Economic Forum for Africa, said that, with the start of operations of the Mozambican subsidiary of Brazil’s Vale, Mozambique would start producing coal on a large scale and that production would gradually increase until it reached 10 million tons per year within 10 years.

“That level of production will be an important contribution, not only because of the taxes that the company will pay, but also because of the employment it will generate. We also want this project to attract other industries not only based on coal, but which can also provide services,” she said.

Esperança Bias said that production at other projects would also kick off this year, specifically the Benga coal project owned by Australia’s Riversdale Mining and tantalum mines in Moiane, Gilé district.

“We want mining activities to be an integral part of the economy and make a great contribution to Mozambique’s development. We also want the mining sector to have companies that add value to our minerals,” she said.

Amongst the projects that are expected to launch production this year, Bias also noted a phosphate mining project in Nampula province. (macauhub)