The company regards its greenfields projects in Mozambique as its prime coal assets, where it is embarking on an ambitious infrastructure and mine complex in partnership with the government there, he told the Melbourne Mining Club yesterday.

“As many may know, we don’t have top-tier assets here – unlike Mozambique which truly is world-class – but it is often in more difficult assets that you do a better and more determined job in reducing costs, and the team here is doing an excellent job in learning every day how to work more efficiently, and this attitude can and will be transferred to teach other businesses about how to implement true efficiency and austerity,” he said.

Carborough Downs reached a new annual record of 2.44 million tonnes of coal last year, 76% above its 2011 output.

Carborough Downs obtained a new quarterly record in 4Q13, at 814,000t, showing good performance after the longwall move in 3Q13, according to the company.

The significant improvement in the performance of Carborough Downs helped the company achieve 8.8Mt of coal production in 2013, 23.7% above the 2012 figure, but 3.6Mt below its annual guidance for coal.

But Carborough Downs mine in Queensland experienced a major setback after a roof fall at the mine earlier this year.

“While completing a routine longwall move over the Christmas period, Carborough Downs experienced a roof fall on January 4 which has delayed the progress of the longwall move,” a Vale spokesman told ICN.

In 4Q13, Vale had operational problems with the longwall cutting mechanism at Integra, which impacted its underground operation.

The company is excited about its Moatize project in Mozambique, which includes a 22Mtpa coal mine and 900km railway.

“This represents a huge development, not just for Vale, but also for the country of Mozambique,” he said.

“Shortly after taking over as [Vale] president I visited this project, which was well underway at the time.

“The [Mozambican] president wasted no time in letting me know his dissatisfaction that Vale was intending to impose exclusivity over the use of the railway there.

“I … let the president know that Vale would welcome additional general cargo and even coal on the railway. General cargo in the form of fruit exports, and fuel imports, not only for Mozambique, but also for Malawi – a land-locked country – can only be the right thing to do in the context of a developing country in Africa. That, I think, is what represents true partnership.”