Vale to sell coal to Cimentos de Maiaia

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Vale to sell coal to Cimentos de Maiaia

2:45 CAT | 03 Sep 2018

File photo: Notícias

Mozambican cement company Cimentos de Maiaia, located in the northern province of Nampula, will be the first Mozambican company to buy coal from Vale Moçambique, under an agreement signed by the two companies, Mozambican daily newspaper O País reported on Monday.

The agreement outlines the sale by Brazilian company Vale to Cimentos de Maiaia of 600 tonnes of thermal coal per year.

“It is a very important agreement, we are used to exporting, but this deal shows that value of demand for coal in Mozambique,” said the chief executive of the Nacal Logistics Corridor (CLN), a railway owned by the Vale consortium, in northern Mozambique.

Cimentos de Maiaia plans to use Vale’s thermal coal in its cement production process.

“Every three months we will load up 200 tonnes and hope that a year after this contract is signed, we can increase the capcity of coal with the Vale group,” said the chief executive of Cimentos de Maiaia, Chungie Gou.

This year Vale expects to export 13 million tonnes of coal, after exporting 20 million tonnes in its first two years of production.

As well as holding the biggest coal concession in Mozambique, specifically in the Moatize district of Tete province, Vale also operates the CLN, a 912-kilometre railway, which links Moatize to the port of Nacala, in Nampula province.

The Vale concession has a production capacity of 22 million tonnes of coal, but is not yet operating a full capacity.

Cimentos de Maiaia, is 85 percent owned by Chinese private interests, and 15 percent by Mozambicans.

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Source: Lusa