CVRD to Start Moatize Construction This Year
Brazilian miner Companhia Vale do Rio
Doce plans to start construction on the
massive Moatize coal project in Mozambique
in the second half of the year,
with production expected in the second
half of 2010, Reuters reported. Roberto
Castello Branco, CVRD’s investor relations
director, pegged capital costs for
the project at $1.6 billion. “We will be
able to produce about 14 million metric
tons of coal products per year, given the
reserves there, and will be able to maintain
production for the next 70 years,”
he said. The company’s overall capital
spending budget for 2007 is $7.4 billion,
about $5.4 billion of which is to be
spent on projects and research and
development.