HomeEnergy MineralsMoatize output could rise 50%

Moatize output could rise 50%

The existing Maputo
coal terminal
Maputo, Mozambique — MININGREVIEW.COM — 08 September 2009 – Global miner Vale’s Moatize coal mine in Mozambique could produce up to 12.7 million tonnes of hard coking coal per year in the first phase of the project.

Vale’s financial general manager Fabio Bechara said this was 50% more than the company’s previous annual production forecast of 8.5 million tonnes of hard coking coal. He also revealed that the mine would target to produce 2.4 million tonnes of thermal coal for exports and an additional 2.5 million tonnes for a 600 MW power station the company planned to build close to the mine.

“We are studying the possibility of building a 600 MW power station, but that will be only the first phase of the project, as we are limited by the existing transmission line,” he said.

“But we have the capacity to produce 2 to 3 times as much, and could expand the power station accordingly “’ but that would depend on the transmission.”

Bechara went on to say that so far Vale had spent US$300 million (R2.4 billion) of the US$1.3 billion (R10 billion) estimated for the project.

He added that Mozambique’s state-owned rail authority Portos e Caminhos de Ferro de Mocambique (CFM) would finalise the bidding process for the construction of a new coal export terminal in Beira by the end of the year.

But, says Reuters, the new port may not be ready when Vale wants to ship first coal from Moatize by 2011.

“There is still a chance that they will match our schedule, but we may have to look for an alternative," Bechara said, adding that Vale might look into refurbishing an old, existing terminal at Beira to be able to handle up to 6 million tonnes a year.

“We would make some investments to accommodate both Vale and some other producers “’ that would be more than enough for our first two years of production,” he continued.

Vale estimates the ramp up of the project would take four years, starting from the middle of 2011.