Mozambique tales a 5 pct stake in Mozambican project of Brazilian group Vale

11 April 2012

Mozambican state mining company Empresa Moçambicana de Exploração Mineira (EMEM) as of Wednesday is taking a 5 percent stake in Brazilian group Vale’s project in Mozambique, A source from the Ministry for Mining Resources told Macauhub in Maputo.

The source said that signing the agreement Wednesday in the Mozambican capital would fulfil the agreement signed in 2004, which reserved a 15 percent stake in the project for Mozambique, 5 percent of which would be taken on by the State and the remaining 10 percent by the private sector.

In August 2010, the Ministry for Mining Resources, Empresa Moçambicana de Exploração Mineira, and Vale Moçambique signed a memorandum of understanding on the Mozambican stake in the Moatize coal project.

Vale plans this year to invest over US$900 million in Mozambique to expand its coal mine in Tete, in the centre of the country, and to refurbish rail and port facilities.

Of that amount, over half will be used to refurbish the port of Nacala and the railway line linking the port to Moatize, in Tete province, where Vale operates the largest coal mining concession in the region.

Investments in Mozambique for this year are part of overall investment of US$16 billion that Vale plans to spend across the world on its mining concessions.

The transfer of the 5 percent stake to the Mozambican state takes place 48 hours after the Mozambican President and the Portuguese Prime Minister closed the deal on the Cahora Bassa Hydroelectric Dam (HCB), with the Mozambican state now controlling 92.5 percent of the facility. (macauhub)