Rio de Janeiro, Brazil — MININGREVIEW.COM — 01 November 2011 – The second phase of Brazilian mining giant Vale’s Moatize coal project is scheduled for completion in 2014, and once completed will represent an overall investment of almost US$1.7 billion.
Confirming this in a statement here, the company said US$161 million of this amount had been assigned to the rest of this year.
According to Vale’s results documents for the third quarter of the year, the second phase of the Moatize project, located in Mozambique’s Tete province, includes the opening of a new mine; the construction of a new coal reception and preparation unit and extension of storage space; as well as all associated facilities.
Moatize II will add 11Mtpa to total coal capacity, 70% of which is expected to be metallurgical coal and 30 % thermal coal.
The documents add that, because the coal operation is logistics-intensive, Vale is investing in the Nacala Corridor, including construction and renovation of the railroad and construction of a sea terminal with an estimated nominal capacity of 18Mtpa of coal, with the potential to expand in the future up to 30Mtpa.
Total investment, Vale said, would be US$4.444 billion, of which US$3.435 billion would be for the railroad and US$1.009 billion for the sea terminal.
Vale went on to say that “’ in line with the decision to invest in the Nacala corridor, and according to the initial acquisition of a 51% stake in the Northern Corridor Development Company (SDCN) in September 2010 “’ it had acquired a further 16% of the company for US$8 million to reach a total stake of 67% in the company that controls and is responsible for the port of Nacala; for the concession on an 872km railroad in Mozambique, which links Entrelagos, in Niassa province, to the port of Nacala; and for the Malawian railway system, which is currently made up of 797km of railroads.