The contract with the Mozambique government includes the go-ahead for CVRD to construct an aluminium plant supplied by a new power station fired by coal from the Moatize operation, the Metal Bulletin reported.
During November CVRD teamed up with North American coal producer American Metals and Coal International, which has a 5% interest in the consortium bid, to pay US$122.8 million for the Moatize concession, considered the largest unexplored coal province in the world with an estimated 2.4 billion tonnes of coking and thermal coal.
The Brazilian steel industry would be a natural market for absorbing the supply of coking coal, while excess demand for energy offered good opportunities for thermal coal, according to the company.
CVRD has already concluded a pre-feasibility study for the Mozambican project and a full feasibility study is scheduled to start in January 2005 and take an estimated 24 months to complete.
CVRD is the world leader in the iron ore and pellet segment, the world's second-largest producer of manganese and ferro-alloys, as well as being Brazil's largest logistics provider.
