Mozambique Coal The plant will be located in Moatize in the Tete province, and the coal
produced would be exported to Brazil, Asia, the Middle East and Europe,
the company said in a statement.
The project is expected to produce 8.5 million tonnes of metallurgical
coal and 2.5 million tonnes of thermal coal, the company said.
"This is our first big project in Africa … from here we will go to
other countries, the Democratic Republic of Congo, Zambia and Namibia
for copper and nickel," Vale Chief Executive Roger Agnelli said.
South Africa holds most of Africa’s coal reserves, but experts say
Mozambique is expected to become the second-ranked coal producer in the
continent with the development of the Moatize project by Vale, formerly
known as CVRD, the world’s largest iron ore producer.
The Moatize mine, which suffered extensive damage during Mozambique’s
civil war in the 1970s and 1980s, is believed to hold about 2.4 million
tonnes of coal reserves, making it one of the largest untapped deposits
in the southern hemisphere.
Mozambique, one of Africa’s poorest countries and still largely
dependent on agriculture, has become popular with foreign companies and
investors interested in staking a claim to Africa’s vast mineral and
energy resources.
Mozambique’s President Armando Guebuza used the launch of the project
to appeal to other investors, saying Vale’s involvement showed that
Mozambique was a secure investment destination, even in the context of
the global financial crisis.
"Vale takes to the world a message that, despite the crisis, Mozambique
is a country for the future and a country to establish longstanding and
sustainable partnerships," he said.
Reuters
Post published in: Economy