Natural disaster in central and northern parts of the country has affected the production capacity of Vale Moçambique’s two mines.
The floods have lead to a downward review of the production in 2018 from 16 million tons to 15 million tons, Mario Godoy the chairman of Brazilian group Vale said.
“At the beginning of the year we had a forecast of 16 million tons, but in the meantime, there were heavy rains, both in the Nampula and Nacala regions, and in Tete, which greatly damaged our activity,” said Godoy.
In 2017, Vale produced 11.2 million tons of coal, compared to 5.6 million tons in 2016, as a result of increased production at the Moatize II mine, the company’s second mine in Tete province, central Mozambique.
Godoy pointed out that Vale will still have to consolidate the coal production process in Mozambique to fully explore the export capacity of 18 million tons of coal of the Nacala Logistics Corridor – which comprises a 912 kilometre railway line and the deep water port of Nacala.
In 2010, Vale posted its first positive result before interest, taxes, depreciation and amortization (EBTIDA) since 2010, with US$330 million, an increase of US$384 million compared to a loss of US$54 million in 2016, according to the report and accounts of the Brazilian group.
Marcelo Tertuliano, the chief financial officer of Vale Moçambique, said that this change was mainly due to the increase in the price of the product on the international market driven by the increasing inspection and restriction of coal mines in China as well as the increase of production.