Name and Location
Moatize coal project, Tete province, Mozambique.

Project Description
The Moatize greenfield project has proven probable reserves of 838-million tons and is one of the world’s largest unexploited coal reserves.

The first phase of the project is planned to produce 11-million tons of coal for the next 35 years, of which 8.5-million tons will be metallurgical coal and 2.5-million tons thermal coal.

The project includes a coal handling and preparation plant on an operational site, with the capacity to process 26-million tons of coal a year, as well as the construction of a 1 800 MW coal-fired power station.

The mine’s output will be transported by rail along the 600-km-long Sena railway line to a new maritime terminal in the Port of Beira, in Sofala. The terminal is currently being reconstructed under a 25-year concessionary agreement carried by the Mozambican government.

Value
The project is valued at $1.658-billion.

Duration
The mine was officially inaugurated on May 8, 2011, and first exports of coking coal are expected to start in December 2011, and be increased to commercial scale by March/April 2012.

Construction of the coal-fired power station started in March 2010, with the first units – producing 600 MW – expected to be operational in December 2012.

First production from the expanded mine is forecast for the second half of 2014.

Client
Vale.

Key Contracts and Suppliers
ABB (electrification and automation solution); Sandvik Material Handling (conveyor); Kentz Corporation (steelwork and mechanical, electrical instrumentation and piping erection); Aurecon (conceptual design for the mine, detailed design of the mine infrastructure components, geotechnical investigations and project management services); International Finance Corporation (IFC − adviser); and R&H Railway Consultants (feasibility studies into train operations and detailed design of the relocation of the existing Moatize–Sena railway line).

Latest Developments
The board of Vale has approved a $6-billion expansion for its Moatize coal project to lift output to 22-million tons a year, from the 11-million tons it expects to mine initially.

About 70% of the coal coming from the expansion will be coking coal and the remainder thermal coal.

The expansion will include the upgrade of the northern port of Nacala, which will be used to export coal, and the building of a rail line connecting the coal mine with the port.

The first production from the expansion mine is forecast for the second half of 2014.

On Budget and on Time?
Vale initiated first mining activities at the mine on May 8, 2011, ahead of operations at the processing plant.

Contact Details for Project Information
IFC, Ludi Joseph, tel +1 202 473 7700 or email ljoseph@ifc.org.
Vale, Roberto Castello Branco, tel +55 21 3814 4540 or email roberto.castello.branco@vale.com.br.