Brazilian group Vale partners Portugal’s SGC Energia to produce liquefied coal in Mozambique

21 June 2011

Lisbon, Portugal, 21 June – Brazilian group Vale, one of the world’s biggest mining groups and the Latin American market leader, has established a partnership with Portugal’s SGC Energia to transform coal into liquid fuel, Portuguese financial daily Diário Económico reported.

The new company will set up a factory in Tete province, in Mozambique to convert part of the coal mined at Vale concession into liquid fuel, via a process called gasification and liquefaction of coal.

The open faced mine that vale is operating in Moatize is expected to produce several types of coal. Coking coal, of the highest quality, is to be exported for use by the steel making sector, whilst thermal coal will feed a power plant with an installed capacity of 300 megawatts.

Coal that contains high levels of ash will be converted into fuel.

“We want to gasify the coal with high levels of ash via a process that we will develop with a Portuguese partner and with a company in Houston, in the United States,” said the chairman of Vale, Roger Agnelli, during the recent ceremony to mark the start of mining at Moatize. (macauhub)