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Mozambique: Vale coal production falls in Q1
11:23 CAT | 28 May 2021
File photo: Vale
The production of Vale, the main coal mining company in Mozambique, fell in the first quarter due to maintenance at the industrial complex in Moatize, in the central interior of the country, the company announced.
“Due to general maintenance of the mining complex, production slowed and decreased by 11% compared to the fourth quarter of 2020, standing at 1.1 million tonnes,” Vale said in a statement.
All production made available was sold, it added.
Earnings (EBITDA) for the first quarter resulted in a loss of $235 million (€192 million) – still an improvement of $61 million (€50 million) on the previous quarter.
The company expects the mine to gain a new dynamic thanks to the works carried out “allowing it to reach a production rate of 15 million tonnes in the second half of 2021”.
Total production for the year “stands at 5.9 million tonnes, reflecting the impacts of the Covid-19 pandemic,” the statement read.
Vale’s coal mines in Moatize produced 8.8 million tonnes in 2019, a figure that decreased to 5.9 million tonnes in 2020, reflecting the impacts of the Covid-19 pandemic, the company said.
Vale announced in January that it was seeking a buyer to leave its Mozambique operation as part of a global coal phase-out due to the impact on the environment.
Coal is one of Mozambique’s main export products, and Vale employs about 8,000 people; close to 3,000 are its own workers and the rest subcontracted.
Source: Lusa
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