Vale Moçambique ends 1st half of 2018 with liabilities of US$7.9 billion

15 August 2018

Vale Moçambique ended the first half of 2018 with a debt of US$7.9 billion, or an increase of US$100 million compared to the amount recorded at the end of the first quarter, the company said in Maputo on Tuesday.

The chief executive of the Mozambican subsidiary of Brazilian mining group Vale, Marcelo Tertuliano, reported that the company’s net profit in the second quarter remained negative by US$193 million, higher than the negative result of US$139 million in the first quarter.

Rains, high operating costs and appreciation of the Mozambican currency, the metical, are among the main causes affecting the performance of the company during the second quarter, according to the Mozambican press.

Tertuliano noted, however, an increase in production, revenues and royalties to the Mozambican state, with coal production, for example, growing from 2.9 million tons in the second quarter, against 2.4 million tons in the previous quarter.

Revenues from coal sales amounted to US$354 million, an additional US$17 million compared with the first three months of the year and the company paid US$6.0 million in royalties, compared with US$5.1 million in the period from January to March.

Vale Moçambique’s chairman, Márcio Godoy, pointed out that despite the negative results, the company will continue to make large investments in its assets in Moatize, Tete province, as well as in the Nacala Logistics Corridor. (macauhub)