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 Million ton (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$3 billion development of the Moatize coal mine in Mozambique and expects to started 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.
Mozambi Coal has a 70% interest in two mineral exploration licences situated in the Zambeze coal basin. In July 2011 the company announced an agreement to acquire an 80% interest in a third exploration licence, 2738L (“Songo” project), also within the Zambeze coal basin, an emerging and highly prospective coal region that is within economic reach of the East African coast.