Mining company Vale Moçambique recorded a loss of US$507 million in 2014, after the losses of US$397 million the previous year, Brazilian group Vale said.
The group also said that the increase in losses, of US$110 million, was mainly due to falling prices in the coal industry (US$68 million) and adjustments of thermal coal inventories at market prices (US$51 million).
Vale’s results in 2014, published on the company’s website, show that the group has suffered with the fall in the price of coal on the international market and even had to reduce ongoing investments in Mozambique.
The cost of operations Mozambique, net of depreciation, totalled US$555 million in 2014, which was a reduction of US$11 million compared to 2013.
The Brazilian group reached an investment agreement with Mitsui of Japan, in December 2014, by which it will reduce its stake in the Moatize mine from 95 percent to 81 percent, and the Nacala Logistics Corridor to approximately 35 percent after completion of the transaction.
The Nacala Logistics Corridor is part of the Moatize/Nacala railway, which is still under construction and will ensure full coal transport as an alternative to the Sena railway line in the centre of the country, which has been unable to ensure the export of all the coal currently extracted by Vale. (macauhub/BR/MZ)