The Denmark-based company will supply Moatize with a complete conveyor system with all mechanical and structural components, transfer towers, silos, chutes, magnets, belt scales, lubrication system, skirts and support.

The $US112 million contract also includes design, detailing, fabrication, supply, delivery to site, supervision of erection and commissioning together with start-up assistance.

FLSmidth previously delivered a crushing plant and filters for the first phase of Moatize along with a contract for supply of equipment for Vale’s Nacala port expansion in Mozambique.

The second phase of the project is expected to enable Vale to approximately double the production capacity at the mine.

Earlier this month Vale said it was planning to ship 4.5 million tonnes of coal this year from Moatize.

The increase will translate to some 1700 trainloads of coal compared to the 1000 trainloads shipped from the mine in 2012 and only 120 trainloads in 2011.

Vale will also build a new railway to link up with Nacala and a new coal terminal at Nacala-a-Velha should be operational by 2014.