Brazil-based Vale's Board of Directors has approved an additional investment of $6 billion to the company's Moatize metallurgical and thermal coal project currently underway in the Tete province in Mozambique. The investment will increase coal output at the mine to 22 million tons per year.
About $4.4 billion of the $6 billion investment will be used to build a new coal terminal at the northern port of Nacala in Mozambique, and a rail line that will connect the coal mine and the port. Once the expansion is completed, the rail line and the expanded port will be able to handle 18 million tons of capacity.
Thermal coal shipments at the mine began earlier this year in September, and metallurgical coal shipments are slated to begin next month. Initial output for the expanded mine are expected in the latter half of 2014.