Mozambican company Cimentos de Maiaia will buy 600 tons of thermal coal per year from Vale Moçambique, a subsidiary of Brazilian group Vale that mines coal deposits in Moatize, Tete province, the company’s chief executive said.

Chunjie Gou, quoted by Mozambican newspaper O País, said that in an initial phase the company will buy the 600 tons of coal and added that it expects that at the end of the first year of the contract it will be possible to increase the amount of coal acquired from Vale Moçambique.

The thermal coal to be acquired by the cement company, which was inaugurated three months ago in the Nacala-Porto special economic zone, according to the CEO, will reduce cement production costs.

In addition to holding the largest coal concession in Mozambique, more specifically in the Moatize district in the central province of Tete, Vale Moçambique also operates the CLN, a 912-kilometre railroad linking Moatize to the port of Nacala, in the province of Nampula, northern Mozambique. source: Macauhub