HomeEnergy MineralsVale expects 2012 Mozambique coal output to be 4.6Mt

Vale expects 2012 Mozambique coal output to be 4.6Mt

Maputo, Mozambique — 31 August 2012 – Brazilian mining giant Vale plans to produce 4.6Mtof coal at its Moatize mine in Mozambique this year as it ramps up production to supply growing demand from Asia, according to a senior company official.

Vale began producing coal at Moatize last year with first exports leaving Mozambique in September, reports Reuters, and the company is investing heavily to increase the mine’s capacity to 11Mt by 2014 and to 22Mt by 2017.

“Our production is still constrained by the limited capacity at the Beira port and the Sena railway line,” Vale Mozambique director Ricardo Saad told reporters. “We have a lot of production stockpiled at the mine and we hope that when the refurbishment of the Sena line is completed, we can begin to accelerate our production capacity.”

The miner is also investing US$4.5 billion to rehabilitate another railway line and the northern port of Nacala to carry coal from the mine, partially passing through Malawi.

The line will transport 30Mt of coal when completed from mines operated by Vale and other producers.

Source: Reuters Africa. For more information, click here.