Mining company Vale Mozambique increased coal production by 92% in the second quarter of 2021 compared to the previous quarter, to 2.1 million tonnes, the company said in a statement on Monday.
“Vale Mozambique was close to doubling coal production levels, compared to the first three months of 2021,” according to the note in the firm’s Financial and Production Report.
According to the document, with the sale of coal in the second quarter, “the company earned $168 million, which corresponds to an increase of $56 million compared to the first quarter,” it added.
In terms of coal transport by rail, from the Moatize mine, in the country’s interior, to the port of Nacala, on the Indian Ocean, the company moved 1.9 billion tonnes, which corresponds to a growth of 83%, compared to the previous quarter.
Coal production and transportation were affected by the late completion of the maintenance process of the processing units at the Moatize mine and confinement rules to prevent the Covid-19 pandemic, Vale explained.
The same coal transport line is also used by general cargo from the regional and transnational economy, whose segment reached the 126,000-tonne mark, representing a 65% growth compared to the first three months of 2021.
A growth recorded even after the impact of the maintenance works on the railway line connecting Nkaya and Blantyre (in Malawi) and after the reduction in international trade associated with the coronavirus.
In the period under review, the company carried around 55,000 passengers, representing a growth of 17% compared to the first quarter of this year, which is seen as a sign of gradual recovery of economic activity.
In Monday’s statement, Vale said it was committed to leaving a competitive operation in Mozambique while ensuring a responsible exit from the country, seeking an investor that can safeguard the interests of all parties.
Vale’s exit from the coal business in Mozambique is in line with the company’s focus on becoming ‘carbon neutral’ by 2050 and reducing its emissions by 33% by 2030, it said.