Rio de Janeiro, Brazil — MININGREVIEW.COM — 22 September 2010 – Brazilian mining giant Vale has announced that it has bought 51% of the Mozambique logistics firm SDCN in order to pave the way for transportation of coal during the second phase of its Moatize project.
In a statement released here, the company explained that SDCN is a majority shareholder of the CDN and CEAR railway concessions, both of which are connected to the region of Vale’s Moatize mine.
“The first phase of Moatize will begin in the first half of 2011 and will have capacity to produce 11Mt of coal per annum,” Vale said. “During the first phase, coal will be transported by the Linha do Sena railway to the port of Beira.”
A senior company official said recently, however, that Moatize could produce up to 12.7Mtpa of hard coking coal in the first phase of the project.
Vale did not reveal how much it paid for the stake in SDCN.
Moatize has proven and probable reserves of 1.09 billion metric tonnes of coal, and includes an open pit mine operation.