A feasibility study at the Moatize coal project in Mozambique will get a cash injection of US$34 million with the company planning to produce about 14 million tonnes per annum from 2009. Total capex for the project at this stage is about US$1 billion.
The 2005 budget also included US$102 million towards acquisition in a metallurgical coke project with Chinese partner Yankuang. The operation will produce 2Mtpa of coke and 200,000tpy of methanol by 2006.
Of the updated budget, nearly 80% or US$2.6 billion will go towards growth, with US$1.16 billion earmarked for new investments in iron ore, pellets, coal, copper and nickel.
The majority of the cash will go towards CVRD’s mainstay commodity – iron ore.
