Vale initiates mining activities at Moatize mine, in Mozambique

Vale celebrated yesterday (5/8) the beginning of mining activities at its coal mining project in Moatize, in the Tete province of Mozambique, ahead of operations at the processing plant. Production is set to start in July 2011. With an investment of USD 1.658 billion, the mine will have a production capacity of 11 million tons per year of metallurgical and thermal coal. The coal from Moatize will be transported via the Sena railway line, over a distance of 600 kilometres, to the coal terminal currently under construction at the Port of Beira in the Sofala province.

Pre-operational activities began in June last year. The mining equipment operator team that has been involved in the pre-operational activities is 90% Mozambican. Team members received extensive theoretical and practical training in Brazil and Mozambique as preparation for their important role in the mine’s development.

The Moatize Coal Project is contributing to the Mozambican economy by creating employment opportunities and generating national income. Over and above its commitment to employment generation, Vale’s project at Moatize has helped to develop local product and service suppliers. Over 7 500 people have been involved in the project since its implementation works started in 2008.

Social Development

Vale’s mission is to transform mineral resources into prosperity and sustainable development. Therefore, the company strives to ensure that its growth strategy promotes development among the communities it reaches. Working with the Mozambican government and civil society, Vale has already invested more than US$ 90 million in social projects covering health, agriculture, infrastructure, sports and education, in addition to the relocation of 1 300 families into fully equipped villages to advance/ensure the sustainability of the local communities. These projects include the rehabilitation of the Tete Provincial Hospital, the Moatize Health Centre, the construction of schools and health centres and the development of local agriculture, among others.

In 2011, Vale will enter into several partnerships, including an agreement between the Brazilian and Mozambican governments to develop an anti-retroviral drugs factory in Maputo. Vale will underwrite part of the investment in its construction. With a view to improving the quality of life of the Tete population, Vale has signed agreements with the Housing Incentive Fund (FFH) and the Water Supply Patrimony and Investment Fund (FIPAG). And, in the Mozambican capital, the Vale Foundation is supporting the rehabilitation of the Tunduru Botanical Garden.