Mozambique: Coal

Mozambique has substantial coal deposits situated in the Moatize and Mucanha - Vuzi coal basins in the Tete province. The basin contains seven coal seams and has reserves estimated at 750 Mt. The Mucanha – Vuzi basin is said to contain as much as 3 600 Mt coal reserves, although the basin is severely block faulted.

Brazilian company Vale has so far spent US$300m on development of the $1.3bn Moatize coal mine in Mozambique and expects to start production from it in late 2011. Full production from the Moatize mine in terms of Phase One is planned at 12.7 million tonnes annually of hard coking coal for export; 2.4mt/year of export thermal coal and 2.5mt/year of thermal coal to supply a local power station should one be built.

Riversdale Mining Limited is involved in the Benga coal project in Mozambique. The project is a joint venture between Riversdale (65%) and Tata Steel Limited (35%) and is located in the Tete Province of Mozambique. Coal resources of 4.0 billion tonnes and a coal reserve of 502 million tones have been identified. Construction of Stage 1 has commenced and is expected to be completed in the second half of 2011.

The Zambeze Project, adjacent to the Benga Coal Project, has an identified coal resource of 9 billion tonnes. The Zambeze Project is similar in structure to Benga with 22 coal seams outcropping over strike length of 14 kilometres across the northern portion of the tenement. In June 2010 Riversdale signed a non-bonding MoU with Wuhan Iron and Steel Corporation and a logistics partnership agreement with the China Communications Construction Company for the development of the Zambeze Project.

Vale intends to install a plant to convert coal into liquid fuels in Moatize district, Mozambique
It has been reported that Brazilian mining company Vale announced that it intends to install a plant to convert coal into liquid fuels in Moatize district, in the central Mozambican province of Tete.
Topics:	Energy; Facility	Countries:	Brazil; Mozambique
Industries:	Coal Mining; Oil Refining
Reference:	Reuters	Contact E-mail Address:	N/A
Date Posted:	17.May.2011 14:23:00 [GMT+2:00]

Brazilian mining giant Vale opened a new US$1.7 billion coal mine in Mozambique
It has been reported that Brazilian mining giant Vale opened a new $1.7 billion coal mine in Mozambique in Moatize, outside the city of Tete in northwest Mozambique.
Topics:	Project	Countries:	Brazil; Mozambique
Industries:	Coal Mining
Reference:	Bloomberg	Contact E-mail Address:	N/A
Date Posted:	09.May.2011 14:35:00 [GMT+2:00]	Expiry Date:	04.May.2021

Posted on May 6, 2011 by mine fo

Mucanha – Vuzi basin Mozambique southern Africa contain as much as 3600 Mt of coal reserves. Iron mining company Vale is The largest producer of iron ore paid great attention on coal mining in Mozambique, especially in Mucanha – Vuzi basin. That based on thorough research Mozambique has large coal deposits are located in the Moatize and Mucanha – Vuzi coal basin in Tete province. The data showed here That coal mines have estimated reserves of 750 Mt. The Mucanha – Vuzi basin has coal reserves of 600 million tons. Mozambique is a country in southern Africa That borders South Africa, Swaziland, Tanzania, Malawi, Zambia and Zimbabwe is famous for coal mining.

Two junior mining and exploration companies are looking at coal projects on Mozambique's Moatize coal field, where giant Brazilian mining group CVRD has advanced plans for a major coal mine.

If all three companies get their projects up and running, a huge new coal mining and exporting region could be developed.

The two juniors are Australian coal miner Riversdale Mining and AIM-listed mining, processing and exploration company Central African Mining & Exploration (Camec).

Riversdale is listed on the Australian Stock Exchange (ASX) and owns the Zululand Anthracite Colliery in KwaZulu Natal, bought from Ingwe in 2005.

It bought the rights to ground contiguous with that held by CVRD in October last year and has just released initial results from its drilling campaign. Riversdale says it holds the rights to 203 000 ha and its plans are to fast-track the development of a "sustainable, long-life mining operation".

According to a report by Australian broking firm Hartleys, Riversdale management intends completing a bankable feasibility study by September 2008.

Camec operates in a number of African countries and its latest move is into platinum in SA, where it has bought 44,5% of Pfula Investments for £7,5m.

Pfula owns the rights to 51% and 40% respectively of the Inkosi and Imbasa platinum projects, in which it is the black economic empowerment partner of AIM-listed African Platinum (Afplats).

Camec holds 10 exploration licences totalling more than 300 000 ha of the Zambezi coal basin in Tete province, which the company claims makes it the largest single holder of licences in the region.

According to Camec, the Zambezi coal basin is one of the world's last and largest unexplored coal provinces, with both coking and thermal coal potential.

A diagram posted on the Riversdale website (www.riversdalemining.com.au) shows blocks of the Camec ground sit contiguous with ground held by both Riversdale and CVRD, and that Camec also holds a large section of ground immediately north of the Cahora Bassa Dam on the Zambezi River.

This section covers the Mucanha and Vusi sub-basins, which Camec says could contain a resource of some 3,6bn t.

Camec says it controls the entire Mucanha and Vusi sub-basins, except for a licence covering 20 260 ha, which has been granted to CVRD.

The company adds that reconnaissance geological mapping of its licence areas has already identified various coal seams and carbonaceous horizons. Says Camec: "These are believed to have potential to host world-class coal deposits with coking and thermal coal properties. Importantly, the shallow dips and potentially vast strike extents of the exposed coal horizons make these amenable to open-pit strip mining."

Riversdale says its initial drilling work has intersected two coal seams that are 15 m and 8,4 m thick at depths of 162 m and 69 m respectively. It says the coking properties are "indicative of those required for a hard coking product".

Coking coal is used to fuel blast furnaces for the production of steel, whereas thermal coal is used for domestic heating and as fuel for coal-fired power stations.

Riversdale's priority is to define the resource required and complete the bankable feasibility study for a mine that would produce 3m saleable tons annually in the first phase of development.

It says "additional exploration will also be aimed at identifying thermal coal resources capable of supporting the establishment of local power stations and related industries."

Riversdale comments: "Discussions are already under way with infrastructure providers of rail and port facilities to ensure access for initial anticipated coal production in 2009."

Rail and port infrastructure will be a key issue. Three existing ports have been suggested as possible sites for export terminals: Beira, Quelimane and Nacala.