employees and contractors in the country
Total production capacity of Moatize mine
is the country’s official language
In Mozambique since 2004, Vale holds the concession for one of the largest coal reserves in the world, in Moatize, in the northwestern province of Tete. Learn more in www.vale.com/mozambique
With its extensive territory rich in natural resources, Mozambique is a strategic region for Vale’s business on the African continent. Our commercial relations in the country began in 2004, when we won a bid to develop Moatize mine, one of the largest coal reserves in the world.In 2008, work began on constructing the Moatize operation – Vale’s first project conducted in Africa. Three years later, the complex came on stream. The Moatize mine currently has an annual production capacity of 11 million metric tons of coal. The output is sold to major overseas markets such as East Asia, the Americas, Europe and India. Over the coming years, Vale plans to invest more than US$8 billion in Mozambique. These resources will guarantee the execution of large projects such as Moatize II, which will double the mining complex’s production capacity.
One of the major challenges to guarantee business sustainability in the region is the development of an adequate and effective structure to transport Moatize’s output.
As a result, Vale has invested in the Nacala Corridor project, which involves building a deep-water maritime port, restoring 682 km of existing railway and constructing a new 230-km stretch.
Vale associates its activities with projects linked to the economic and social growth of the local population. Working with communities and learning from them, the company contributes to the development of the regions where it operates.
We are also working to protect the environment. Through a structured environmental management program, the company maintains two native tree nurseries, and it is investing in water and air quality control programs, waste treatment, and the monitoring of marine biodiversity.
The generation of jobs and income is an important contribution made by Vale, which also stimulates and develops local suppliers of services and products. We are committed to hiring local workers, who make up around 85% of our workforce.
After remaining inactive for 30 years, the Sena Railway resumed operations in 2012. This is the current transportation infrastructure of coal in the country, between the central provinces of Tete and Sofala, where it is held the transhipment.
To ensure operational safety and efficiency in rail traffic, Vale invested in the implementation of a railway signaling system that is monitoring the movement of trains through satellite communication. This system, unprecedented in Mozambique, allows about 500 trains running monthly in the Sena line to be monitored and controlled in real time. With the installation of this system, rail operators, and more than 184,300 passengers moving through this line per year, can have a safe and efficient transportation.
Located in the province of Tete, Moatize mine has a promising future as a key contributor to growth in global coal supply. Its total production capacity is 11 million metric tons per year: 8.5 million metric tons of metallurgical coal, mainly premium hard coking coal; and 2.5 million metric tons of thermal coal. Moatize mine is currently undergoing an expansion project to open up a new mining area and expand the existing coal handling and preparation plant (CHPP). Moatize II project will expand Moatize’s nominal production capacity to 22 million metric tons per year.
Production: Metallurgical and thermal coal
In December 2014, Vale and Mitsui informed an investment agreement for Moatize mine
Type of mine: Open-pit
Transport: Output transported from the mine to the Port of Beira along the Sena Railway
The company has strict criteria for determining whether or not to go ahead with projects in this area. Besides the geological potential, it takes into account logistics prospects, the political and economic situation and the country’s rules related to mining. Ultimately, the aim is to provide the company with world-class deposits.
Located in central Mozambique, it is responsible for handling the coal produced in Moatize mine. Vale holds the concession for this terminal, which is capable of handling 6 million metric tons per year.
To sustain the expansion of Moatize coal mine’s capacity, Vale has also been investing in logistics infrastructure through the Nacala Corridor project. This involves restoring 682 km of existing railway track between Malawi and Mozambique, building a maritime terminal, and laying 230 km of new railway – 201 km connecting Moatize to Nkaya Junction in Malawi, and another 29,3 km connecting Namarral to Nacala-à-Velha – giving a total length of 912 km. The restoration of existing stretches of railway will increase the capacity to 18 million metric tons of coal per year.
In December 2014, Vale informs that it entered into an investment agreement with Mitsui, whereby the japanese company will own 50% of Vale’s 70% equity stake in the Nacala Logistic Corridor (NLC). The transaction is essential for the continuity of our investment in Mozambique and Malawi as it provides the funding for the completion of the Moatize project and of the NLC.
This project is designed to double the coal production capacity in Moatize to 22 million metric tons per year. The plan involves installing a new mine and expanding the coal handling and preparation plant (CHPP). In all, investment of around US$2 billion is planned. Start-up is scheduled for the second half of 2015.