Brazil’s Vale plans to invest US$4 billion in Mozambique

9 May 2011

Moatize, Mozambique, 9 May – Brazilian mining company Vale plans to invest over US$4 billion in Mozambique, particularly in activities related to coal production and export, the chairman of the group, Roger Agnelli said in Moatize.

Cited by Mozambican newspaper Notícias, Agnelli, who is standing down as chairman of Vale later this month, said that the figure included construction of the second phase of the project, which would expand production capacity from 11 million tons to 22 million tons per year.

It also includes construction of the Nacala railroad and work to improve the local port, which is an alternative for distributing the coal, and is due to be concluded in 2014.

“At the moment our biggest limitation is not the production capacity of our mines but cargo capacity of the Sena line that only allows us, for now, to export up to 4 million tons per year. But we hope that by next year that capacity will be increased to at least 6 million tons,” said Agnelli.

The chief executive of Vale made it clear, according to Notícias, that the US$4 billion did not include other projects owned by Vale, such as fertiliser production, construction of a thermal power plant and biodiesel production.

With all the scheduled investments to develop the coal project, employment opportunities are expected to grow to around 15,000 jobs from 8,000 at the moment, over the next five years.

Vale has been in Mozambique since 2004 and has a concession on one of the world’s largest coal reserves. (macauhub)