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.