China’s CBSteel plans to invest $1.4 billion to build a facility in Nacala, Mozambique, to export coking coal to Brazil.
The China Brasil Xinnenghuan International Investment (CBSteel) signed a memorandum of understanding (MoU) in Maputo with the country’s Ministry of Industry and Commerce (MIC), according to a media report.
CBSteel’s chairman, Zhang Shengsheng, said the construction of the Nacala mill in the province of Nampula will be financed by the Chinese government and should take about one year to build.
CBSteel, which already announced plans to build a mill in the Brazilian state of Maranhao, expects to export 4 million mt of coal to Brazil from its Nacala facility.
Media reports said CBSteel commenced construction of the Brazilian mill in Maranhao state in December last year.