Brazil’s CVRD to Explore Coal in Africa

Brazil’s Companhia Vale do Rio Doce (CVRD) informs that it was declared the winner of an international bidding process to explore coal deposits in the Moatize region, north of Mozambique.

CVRD is associated in this project with American Metals and Coal International (AMCI), a North-American coal producer.


CVRD has 95% of the winning consortium, while AIMC owns the remaining 5%. The CVRD/AMCI consortium bid US$ 122.8 million for the concession.


Moatize is considered the largest unexplored coal province in the world. It is a world-class deposit estimated to have 2.4 billion tons, allowing the extraction of coking and thermal coal.


The Brazilian steel industry, especially the new capacity increase projects, is a natural market for absorbing the supply of coking coal, while there is excess demand for energy in Austral Africa, offering a good opportunity for thermal coal.


Mozambique is a fast-developing economy, with political stability and a modern mineral legislation.


It has recently received significant foreign direct investment flows in the metals and mining industry.


Mozambique has the financial support from multilateral credit institutions, such as the International Finance Corporation (IFC), a subsidiary of the World Bank, and from regional credit institutions, such as the Industrial Development Corporation (IDC), from South Africa.


BNDES, the Brazilian national development bank, has formally expressed its interest in supporting the Moatize project.


CVRD already concluded the project’s pre-feasibility study. The feasibility study is scheduled to start in January 2005 and is estimated to take about twenty-four months to be concluded.


Total investment is estimated at US$ 1 billion and includes concession payment, mine development, construction of a maritime terminal for ship loading and social investments.


There is a railroad linking the Moatize region to ports in the coast of Mozambique, Nacala and Beira, which is operated, under government concession, by Indian companies.


The Moatize project represents a milestone in the CVRD initiative to enter the coal business. It is its first coal-mining project and, at the same time, increases its international operations. 


In 2004, CVRD had already entered into two partnerships with Chinese companies ”” Yangkuang, Yongcheng and Baosteel ”” as a minority shareholder, for the development of coal-related business in China.


CVRD has large experience in the development and operation of large-scale mineral projects and in the handling of considerable volumes of bulk cargo through mine-railroad-port integrated systems.


It is also one of the main global suppliers of raw materials ”” iron ore, pellets, ferro-alloys ”” to the steel industry, and metallurgical coal will complement its portfolio.


Companhia Vale do Rio Doce
www.cvrd.com.br
PRNewswire

Tags:

You May Also Like

Brazilian State Can’t Take the Mafia and Calls the Feds

Brazil’s National Security Force is on its way to the state of EspÀ­rito Santo ...

Brazil Tells US that WTO Comes Before FTAA

Negotiations within the scope of the World Trade Organization (WTO) and agreements with developing ...

Brazilian Congress Snubs Report and Acquits Its Former President

By a vote of 256-209, the Brazilian Chamber floor acquitted the ex-president of the ...

Kahal Zur Israel synagogue in Recife, state of Pernambuco, Brazil

Those Intrepid Brazilian Jews! They Started the NY Jewish Community in 1654

If one were to ask most Americans to describe the images and ethnic qualities ...

Boeing Betting Brazil and LatAm Will Buy Over 1700 Jets the Next 20 Years

For Mike Barnett, marketing director for Latin America of US jet manufacturer Boeing, the ...

IBM Opens in Brazil LatAm’s First Mainframe Software Center

US-based IBM has opened a mainframe software competency center in São Paulo, Brazil, enabling ...

Brazilian Congress Flooded with Requests for Ouster of Legislators

The president of Brazil’s Chamber of Deputies, Severino Cavalcanti (PP-PE), said, Wednesday, August 3, ...

US Thirst for Assai Gives the Brazilian Fruit a Big Boost

Fruit from the state of Pará, in the North of Brazil, are pleasing the ...

Brazil advertises for food products in Germany during World Cup

Brazil Promotes Other Stars in Germany: Soy, Coffee and Orange Juice

If it depends of the Ministry of Agriculture, Livestock and Supply of Brazil, Ronaldinho ...

Brazilian Again Chosen to Lead UN Forces in Haiti

United Nations Secretary-General Ban Ki-moon today named Major General Carlos Alberto dos Santos Cruz ...