The China Brasil Xinnenghuan International Investment (CBSteel) company plans to invest US$1.4 billion to build a plant in Nacala to transform coal into coking coal to export to Brazil.

CBSteel’s intentions were indicated in a memorandum signed last Friday in Maputo by the permanent secretary of Mozambique’s Ministry of Industry and Commerce (MIC), Carla Soto, and the chairman of the board of China Brasil Xinnenghuan International Investment (CBSteel), Zhang Shengsheng.

After signing the memorandum, Zhang said that construction of the Nacala plant in Nampula province would be financed by the Chinese government and should last about a year.

CBSteel expects to annually export 4 million tons of coal to Brazil for use in steel production.

Mozambique’s AIM news agency reports that in the last five years 92 projects have been approved for Mozambique, corresponding to nearly US$823 million in Chinese direct investment, with the potential to create more than 14,000 jobs. (Macauhub)