Vale's coal production falls in first quarter in Mozambique

The production of Vale, the main coal mining company in Mozambique, fell in the first quarter due to maintenance at the industrial complex in MoatizeTete, in the central interior of the country, the company announced.

"Due to general maintenance at the mining complex, production slowed and decreased 11% compared to Q4 2020, standing at 1.1 million tons," Vale said in a statement. 

All the production made available was sold, he added.

The result (EBITDA) for the first quarter resulted in a loss of $235 million - still an improvement of $61 million over the previous quarter.

The company expects the mine to gain a new dynamic thanks to the work carried out "allowing it to reach a production rate of 15 million tons in the second half of 2021.

Total production for the year "stands at 5.9 million tons, reflecting the impacts of the covid-19 pandemic," reads a statement. 

Vale's coal mines in Moatize produced 8.8 million tons in 2019, a figure that decreased to 5.9 million tons in 2020, reflecting the impacts of the covid-19 pandemic, the company said.

Vale announced in January that it is looking for a buyer to leave its Mozambique operation as part of a global coal phase-out due to the impact on the environment.

Coal is one of Mozambique's main export products, and Vale employs about 8000 people, close to 3000 of its own employees and the rest subcontracted.

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