Brazilian mining giant Vale has a new U.S. $ 1.7 billion (R11.39 billion) coal mine in Mozambique, tapping the southern African country’s coking and thermal coal reserves of about 23 billion tons. Mozambican President Armando Guebuza and outgoing Vale chief executive Roger Agnelli opened mine together on Sunday by pressing a button that an underground explosion, causing the company to bring the area its first coal from the mine in Moatize, outside the city of Tete in northwestern Mozambique.
As a huge cloud of smoke mushroomed across the hundreds of VIP guests, a large truck took a symbolic meaning to a conveyor belt and on to a coal-washing facility.
“A dream of decades from now a reality”, said Guebuza.
Largest investment
The $ 1.7-billion project is the largest investment to date in Mozambique, one of the poorest countries in the world.
Vale plans to start production in July and one million tonnes of coal exports this year, ramping up output to 11 million tons in a few years – and local officials hope, stimulate the Mozambique current economic growth of 6.5%.
Agnelli said the project would be less than $ 3-billion to add to the economy.
“Africa means opportunities,” he told reporters.
Mozambique coal reserves have gone largely unused since independence from Portugal in 1975. A civil war from 1977 to 1992 crippled the country’s economy and its infrastructure decimated.
Two decades later, Mozambique welcoming foreign investors to its mineral wealth and licking its lips at the prospect of a tree.
In 2004, Vale became the first international mining giant to grant a concession in Mozambique. At the height of the preparation, the company had 7,500 employees, primarily Mozambique.
Australian mining company Riversdale, in a partnership with the Indian companies Tata Steel and Jindal Steel and Power, including the development of large coal mines in Mozambique.
Infrastructure remain
But the concern remains the product to the market, such as infrastructure renovation remains: “We run at this stage to the infrastructure ready for export,” said Agnelli, adding that exports would begin in July, although the track authorities told AFP they would only be ready in August.
Mozambique is scrambling for a much-delayed renovation of the 600 km long railway that Sena Moatize coal-rich connection to the Indian Ocean port of Beira finish. The coal terminal in the port is not finished yet.
Even when finished, the Sena line will only be able to six million tonnes of coal per year grip – four million to two million and Vale Riverdale – caps for less than half of the companies respective export goals.
Vale is investing in a different line from Tete to the northern port of Nacala, the coutry only deep water port and a gateway to the Indian Ocean south coast ports of Mozambique’s African neighbors.
The company is also the reconstruction of an international Nacala air base in finance, Agnelli said.
source:southafrica.info
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