Brazilian mining group Vale has created a significant local supply chain in Mozambique to support its Moatize coal operation, in the African country’s Tete province. This was highlighted recently by the president of Mozambique’s Confederation of Economic Associations (Confederação das Associações Económicos – CTA), Agostinho Vuma, in an interview with local journal O País Económico.

After a visit to the various units of the Moatize operation, he reported that, since 2012, the mining group had bought products and services worth $800-million from local small and medium-sized enterprises. Vuma, who was accompanied by representatives of the different divisions of the CTA, expressed satisfaction that Vale was relying on local businesses to support its mining activities.

“As the CTA, we are satisfied with the [local] enterprise connections element,” he said. “Vale is doing good work, even before the approval of the local content law. We now need to improve our relations, which is essentially to jointly count these Mozambique small and medium companies businessmen.”

Vuma also expressed his satisfaction at Vale’s environmental protection activities. The miner was scrupulously fulfilling the country’s environmental laws, employing various means to avoid any pollution.

Even with the global financial crisis, Mozambique had positioned itself among the top coal producers, affirmed Vale Mozambique chairperson Márcio Godoy, attributing this to the joint effort between Vale and the companies that supported the mine’s production.

“For this to take place, we need a very well structured production chain – very strong and with high productivity,” he pointed out. “Hence, we relied on combined efforts with the local companies, with partners, whether based here in Moatize, or in other parts of the country.”

He highlighted that there were 140 projects currently being discussed. These would likely be approved in the near future and would see their proponents joining Vale’s production support chain.