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CVRD Signs Mining Contract for Moatize
06/29/2007 - Companhia Vale do Rio Doce announces that the government of Mozambique has approved the mining contract for the exploitation of the Moatize coal project.
Companhia Vale do Rio Doce (CVRD) announced that the government of Mozambique approved the mining contract for the exploitation of the Moatize coal project, located in the northwestern province of Tete.
The project involves exploitation of an open-pit mine for 35 years, with an estimated average annual production of 11 million tonnes of coal products—8.5 million tonnes of metallurgical coal and 2.5 million tonnes of thermal coal.
This event follows the Mozambican authorities’ approval of the project development plan in early June. The contract has a 25-year duration, and can be extended for additional periods of time. The contract establishes the tax, international trade and foreign exchange regimes that will govern the CVRD investment in Moatize.
“This is an important step in our strategy for the coal business,” said Roger Agnelli, CEO of CVRD. “We still need to reach an agreement, which is in the final stage of discussion, involving competitive costs for the logistics of the project.
This process began in November 2004, and the last steps will include the mining concession and conclusion of negotiations with the local railroad and port operators for the logistics contract.
“I would like to highlight the support and partnership developed with the government of Mozambique, which were very important for the smooth evolution of this process,” concluded Agnelli. “I am very happy with it.”
