Vale Moçambique posts loss of US$103.5 million in 2nd quarter

18 August 2014

Vale Moçambique posted a loss of US$103.5 million in the second quarter, despite an increase in its coal sales to 833,000 tons, the director of the Brazilian mining company subsidiary said in Maputo.

Pedro Gutemberg said that production at the Moatize mine totalled around 1.17 million tons of coal in the second quarter of 2014, which was an increase of 161,000 tons against the first three months of the year, with sales totalling 883,000 tons, or 183,000 tons more than in the previous quarter.

According to Gutemberg, taking into account investments made in staff training for example, Vale Moçambique posted an operating loss of around US$103.5 million which, together with the US$44 million loss in the first quarter, bring the total for the year to US$147.5 million.

Gutemberg also said that against the first quarter of the year the climate was identical with the cost related to coal transport “extremely high” at around US$65 per ton and international coal prices at around US$120 per ton.

Recently Anglo-Australian group Rio Tinto sold its coal assets in Mozambique for US$50 million to a consortium of Indian state companies, International Coal Ventures Private Limited (ICVL). The assets were originally acquired for around US$4 billion.

Commenting on this deal, Gutemberg said “the news of the exit of a company as important as Rio Tinto should be a warning to everyone involved in the sector.” (macauhub/MZ)