Rio Tinto Coal Mozambique to spend US$160 million this year on local acquisitions

7 May 2012

Rio Tinto Coal Mozambique plans this year to spend US$160 million on local acquisitions to bolster its mining activities in the Moatize district, in the central Mozambican province of Tete, Mozambican news agency AIM reported.

The acquisitions are intended to cover the operating requirements of Rio Tinto in terms of consultancy services, office materials, fuel, catering, replacement parts, vehicles, explosives, staff transport, security services, personal safety equipment, medical assistance, and logistics.

Local acquisitions made by Rio Tinto Coal Mozambique in 2011 were in excess of US$120 million, which did not include costs of building facilities to mine the and process the coal.

In order to ensure that Mozambican companies benefit from business opportunities offered by Rio Tinto a partnership was set up with the Mozambican Confederation of Economic Associations (CTA), the Centre for Investment Promotion (CPI), and the Office for Accelerated Development Economic Zones (Gazeda).

Rio Tinto also said it had set up a partnership with international organisations to develop and support small and medium-sized companies and that, as well as this, it had opened a centre in Tete this month to help local companies to understand how to become Rio Tinto suppliers.

The Benga coal mining project, in Moatize, involves Anglo-Australian group Rio Tinto and India’s Tata Steel, which owns a 35 percent stake. (macauhub)