The Mozambique government has approved the mining contract for the exploitation of the Moatize coal project, in the northwestern province of Tete, said Companhia Vale do Rio Doce (CVRD) in a statement.

The contract has a duration of 25 years, which can be extended.

The project involves the exploitation of an open-pit mine for 35 years, with an estimated average annual production of 11 Mt of coal products, 8.5 Mt of metallurgical coal and 2.5 Mt of thermal coal.

“This is an important step in our strategy for the coal business. We still need to reach an agreement, which is in the final stage of discussion, involving competitive costs for the logistics of the project,” said Roger Agnelli, chief executive officer of CVRD.

Bloomberg June 29

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