Production at Vale’s Moz mine plunged last year

21st February 2020

By: Rebecca Campbell

Creamer Media Senior Deputy Editor

     

Font size: - +

The Moatize coal mine, in Mozambique’s Tete province, which is majority-owned by Brazilian mining major Vale, achieved a total coal production of 8.77-million tons (Mt) last year, with production for the fourth quarter of that year (4Q19) totalling 1.876 Mt. Total coal sales for 2019 were 8.783 Mt and 2.042 Mt for 4Q19. These figures were included in the miner’s recently issued report, ‘Vale’s Production and Sales in 4Q19 and 2019’.

Moatize is Vale’s only coal operation and produces both metallurgical and thermal coal. Acquired for its metallurgical (or coking) coal, ironically, the mine produced more thermal coal last year, with total thermal coal output being 4.738 Mt, compared with 4.032 Mt for metallurgical coal. However, metallurgical coal sales during 2019, at 4.427 Mt, exceeded thermal coal sales, which came to 4.356 Mt.

In comparison with 2018, in which year total coal production came to 11.605 Mt, Moatize’s total 2019 output was 24.4% lower. Regarding metallurgical coal, 2019 production was 34.6% down on 2018’s figure of 6.161 Mt. With thermal coal, the year-on-year decline was less severe: 13% (2018 production being 5.444 Mt).

Regarding coal sales, these came to 11.633 Mt during 2018, which means the 2019 figure was lower by 24.5%. Metallurgical coal sales for 2019 were 29.1% down on 2018 (which saw sales of 6.24 Mt) and thermal coal sales declined by 19.2% (2018 sales having totalled 5.393 Mt).

These declines, the miner reported, were the result of decreased productivity at the coal processing plants throughout 2019. Consequently, last year, Vale overhauled its business plan and launched two new programmes, with which it expects to achieve sustainable results. These initiatives, previously revealed, are a new mining plan and a new processing plant operational strategy.

“The new mining plan prioritises better-quality orebodies and has a lower stripping ratio, which is expected to result in an improved product mix and cost savings,” explained Vale in its report. “The plant will be adapted for this mining plan, with a new operational flowsheet [to] be implemented during a three-month period.” This implementation period is expected to start in May.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION