Rio de Janeiro, Brazil, 28 Oct – The second phase of the Moatize project of Brazilian mining group Vale is expected to be concluded in 2014 and will represent an investment of US$1.658 billion, US$161 million of which have been consigned for this year, the group said Wednesday in Rio de Janeiro.
According to results documents for the third quarter of the year, the second phase of the Moatize project, located in Mozambique’s Tete province, includes opening a new mine, construction of a new coal reception and preparation unit and extending storage space, as well as all associated facilities.
Moatize II will add 11 million tons of coal per year to total capacity, 70 percent of which is expected to be metallurgical coal and 30 percent thermal coal.
As the coal operation is logistics intensive, Vale is investing in the Nacala Corridor, including construction/renovation of the railroad and construction of a sea terminal with an estimated nominal capacity of 18 million tons of coal per year and potential to expand in the future up to 30 million tons per year.
Total investment, Vale said, would be US$4.444 billion, US$3.435 of which would be for the railroad and US$1.009 billion for the sea terminal.
Vale also said that, in line with the decision to invest in the Nacala corridor, and according to the initial acquisition of a 51 percent stake in the Northern Corridor Development Company (SDCN) in September 2010, it had acquired a further 16 percent of the company for US$8 million to reach a total stake of 67 percent in the company that controls and is responsible for the port of Nacala, for the concession on an 872-kilometre railroad in Mozambique, which links Entrelagos, in Niassa province, to the port of Nacala, and for the Malawian railway system, which is currently made up of 797 kilometres of railroads. (macauhub)