Brazilian mining major Vale has reported a stronger performance by its Moatize coal operation in Mozambique during the second quarter of this year (2Q14), compared with the first quarter (1Q14). Vale’s Carborough Downs coal operation in Australia also showed better performance, taking the group’s total 2Q14 coal production to 2.2-million tons, an increase of 23.8% over the figure for 1Q14.

Regarding Moatize, which is located in Tete province in the west central part of the African country, production came to 1.17-million tons during the second quarter. The mine produces mainly metallurgical coal, but also thermal coal. Metallurgical coal output in 2Q14 was 714 000 t, up 19.9%, compared with the 1Q14’s 595 000 t. But the 2Q14 number was 15.9% down on the 849 000 t produced during the second quarter of 2013 (2Q13). For the first half of this year, production came to 1 309 000 t, a 3.4% increase over the 1 265 000 t for the same period last year.

The mine’s thermal coal production for 2Q14 amounted to 457 000 t, up 10.4% on the 1Q14 figure of 414 000 t and 2% above 2Q13’s 448 000 t. For 2014’s first semester, output was 871 000 t, a 23.7% jump over the 704 000 t for the first half of last year. “The coal mix will improve with the prioritisation of the opening of new mine faces in 2H14 [second half of 2014],” stated Vale in its 2Q14 Production Report.

“The ramp-up of the first phase of the Moatize coal project is being currently restricted by the existing limitations of the logistics infrastructure – railway and port – which do not allow for total utilisation of the mine’s nominal capacity of 11 Mtpy [million tons per year],” noted the company. “The start-up of the Nacala corridor logistics operation, expected by the end of 2H14, will gradually eliminate the above mentioned logistics bottleneck.”

Vale is also active in Zambia, where it is a partner in the Lubambe copper mine (previously known as the Konkola North Copper Project), in the Copperbelt province. To pursue copper projects in Zambia and the Democratic Republic of Congo (DRC), Vale formed a 50:50 joint venture (JV) with South African group African Rainbow Minerals. This JV holds 80% of Lubambe, with the remaining 20% held by the State-owned Zambia Consolidated Copper Mines Investment Holdings. (The JV also has the Lubambe Extension project and 80% of the Kalumines project in the DRC, with the other 20% owned by State-owned miner Gecamines.)

“Lubambe, our Zambian JV, is ramping up and delivering 6 900 t of copper in concentrates on a 100% basis (attributable production of 2 800 t),” reported Vale. “Lubambe has a nominal capacity of 45 000 t per year.” Lubambe’s 2Q14 production was 10.8% higher than in 1Q14 (when the amount attributable to Vale was 2 500 t) and 2.9% higher than Vale’s share of 2 700 t in 2Q13. Attributable production for the first half of this year amounted to 5 300 t, up 16.5% on the 4 600 t for the first semester of last year.

Meanwhile, it has been confirmed that Rio Tinto will sell its 65% share in the Benga coal operation and its wholly owned Zambeze and Tete East coal projects in Mozambique to India’s State-owned International Coal Ventures Limited (ICVL). These have estimated reserves of 2.6-billion tons and the price is $50-million. Rio Tinto originally acquired these assets from Australian junior Riversdale Mining for $4-billion, but most of this has since had to be written down. (The remaining 35% of Benga is owned by India’s private sector group Tata Steel.) The sale is expected to be concluded during this quarter.

“The coal resource will become a long-term captive source of a critical raw material in steelmaking in geographical proximity to India,” affirmed ICVL in a statement. “The coal mine and assets are located in the prime coking coal bearing region of the Moatize coal basin, which is stated to be the second largest coal basin in the world after the Bowen Basin in Australia.”