OREANDA-NEWS. Vale signed a concession contract this month with the government of Mozambique clearing the way for the construction, operation and maintenance of the Moatize Thermoelectric Plant (known by Portuguese acronym CTE Moatize). The coal-fired plant will have a generating capacity of 300 MW and will be built close to our existing mine in the locality. The objective is to meet the demand for electricity of our projects in the region and add value to the enterprise with the sale of coal tailings that would previously have been discarded.

The plant will make a major contribution towards Mozambique's economic development

The plant, which is expected to be operational by 2017, will contribute even more to Mozambique's economical development, as 20% of the electricity generated will be destined for the country's electricity grid. Once the Moatize Thermoelectric Plant becomes operational, Vale will be making a major contribution towards the country's energy matrix as well as increasing the value of its coal business.

The enterprise is a joint venture between Vale, ACWA and Mitsui, initially slated to run for 25 years.