Brazil-based Vale plans to join with Portugal's SGC Energia, a company involved in renewable energy projects, to build a facility in Moatize in Tete, Mozambique that will convert coal produced at Vale's Moatize coal mine to liquid fuel.
Thermal coal will be used a power station to create 300 megawatts of electricity; higher quality coking coal will be used for export, and lower grade coking coal will be converted into liquid fuel.