Moatize Coal: Brazil’s Vale announces in June financing source for projects in Mozambique

The Vale mining group plans to announce the financing source for projects in Mozambique this coming June, the executive president of the Brazilian group said on Wednesday.

In comments to the Brazilian newspaper Valor, Murilo Ferreira also mentioned the announcement made by the National Economic and Social Development Bank (BNDES) that it had approved financing of 6.2 billion reais for the group, to be applied at the Carajás Complex in Pará state.

“We have various financing sources for projects now under way both here and in Mozambique, and BNDES is part of that array,” Ferreira said.

He added that the BNDES financing was specifically for Carajás, while for other projects “there are other [financing] sources.”

In Mozambique Vale mines coal at Moatize in Tete province. Current production capacity is 11 million tons per year.

The company aims to double Moatize’s production capacity to 22 million tons per year, with investment estimated at US$2 billion, a project that should begin operating in the second half of 2015.

Associated to coal production, Vale is working to build a new railway line more than 900 km long as well as a port. The so-called Nacala Corridor will require US$4.4 billion.

The project linking Moatize to the Nacala-a-Velha maritime terminal in Nacala should be completed in the second half of 2014. The Brazilian group has announced that negotiations are under way with potential interested parties to divest a share of its stake in the Nacala Corridor