The Indian company Vulcan Resources, which is part of the Jindal Group, on Thursday pledged to continue coal mining in Moatize, in the western Mozambican province of Tete, and to operate the Nacala Logistics Corridor, the railway which runs from Moatize, across southern Malawi, to the mineral port of Nacala-a-Velha, on the coast of Nampula province.
Vulcan Resources purchased the Moatize mine and the Nacala Logistics Corridor from their previous owner, the Brazilian mining giant Vale, for 270 million US dollars. This agreement was reached in December 2021, and the sale was finalized last month.
At an audience granted by President Filipe Nyusi on Thursday to the Vulcan Management, the company promised to keep the businesses running and to make new investments.
The Minister of Mineral Resources and Energy, Carlos Zacarias, told reporters that the audience was an opportunity for the Vulcan leadership to introduce themselves to the President and brief him on their plans.
“This meeting”, said Zacarias, “was to re-affirm Vulcan’s commitment to continue the operations in Moatize and in the Logistics Corridor”.
He added that Vulcan’s purchase of Vale’s assets included commitments to keep the current work force in their jobs, and to make the investments necessary to improve the operations.
Zacarias also confirmed that the sale will result in the payment of 20 million dollars in capital gains tax to the Mozambican state. Discussions on the tax payment are continuing between Vulcan and Vale “to clarify certain aspects”, said the Minister, but the figure of 20 million dollars has already been agreed.