Vale makes profits of 931 million in Mozambique

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Vale makes profits of 931 million in Mozambique

12:01 CAT | 04 May 2018

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The Brazilian mining company Vale announced yesterday that it registered a net profit of 66.3 billion meticais (EUR 928 million) in Mozambique in 2017, 31 up on 2016.

Despite gains made in 2017, the company is still far from recovering the investment and resources it has invested in the country, Vale’s financial director Marcelo Tertuliano told a press conference in Maputo.

“This does not mean that the company is already generating satisfactory net results to give shareholders a return,” said Tertuliano.

Revenues increased as a result of the exchange rate variation in favour of the metical, the increase in the volume of coal production and the respective increase in prices, he said.

Due to the appreciation of the metical, Vale saw its debt in Mozambique fall 13 percent to 456 billion meticais (EUR 6,400 million).

Last year, Tertuliano continued, the company’s revenues in Mozambique amounted to 97.3 billion meticais (EUR 1,362 million), an increase of 122 percent on the 2016 figure.

In terms of production, Vale reached 11.2 million tons, against 5.6 million tons in 2016, as a result of the enlargement of the Moatize II mine, the company’s second in the Tete province, central Mozambique.

In 2017, the company doubled investment in its two coal mines in Mozambique, channelling 10 billion meticais (EUR 140.8 million) into its activities, he added, against five billion meticais (EUR 70.4 million) in 2016.

Source: Lusa