Vale do Brasil to invest US$1.190 billion in Mozambique in 2012

14 February 2012

Rio de Janeiro, Brazil, 14 Feb – The Vale mining group plans to invest US$21.4 billion around the world, with a portion amounting to US$1.190 billion dedicated to Mozambique, the Brazilian group has announced.

More than 60 percent of the total in the 2012 investment plan, or US$12.9 billion, will be applied to develop new projects, while US$2.4 billion or 11 percent will be spent on research and development, indicates the information released on Monday.

In Mozambique Vale will this year apply at Moatize II US$499 million of a total planned investment of US$2.068 billion, and in the Nacala Corridor US$691 million of a total planned investment of US$4.444 billion.

Broken down by business area, the investments will give priority to ferrous metals (46.7 percent), followed by basic metals (21.6 percent), fertilisers (9.6 percent) and coal (8 percent).

Geographically, Brazil accounts for 63.7 percent of the budget, followed by Canada (11.7 percent), Africa (9.1 percent), other South American countries (6.0 percent), Asia (5.7 percent) and Asia-Pacific (3.3 percent).

Vale expects global iron ore production to reach 312 million tonnes this year, slightly above the 310 million tonne target for 2011 – real production was 307.795 million tonnes.

Regarding other products, this year Vale expects to produce 50 million tonnes for pellets, 16.6 million tonnes of coal, 300,000 tonnes of nickel, 340,000 of copper and 650,000 of potassium. (macauhub)