Mining company Vale Mozambique increased coal production by 92% in the second quarter of 2021 compared to the previous quarter, totaling 2.1 million tons, the company announced today in a statement.

"Vale Mozambique came close to doubling coal production levels compared to the first three months of 2021," reads the note on the firm's Financial and Production Report.

According to the document, with the sale of coal, in the second quarter, "the company raised $168 million, which is an increase of another $56 million compared to the first quarter," it adds.

With regard to the transportation of coal by rail, from the Moatize mine, in the interior of the country, to the port of Nacala, in the Indian Ocean, the company moved 1.9 billion tons, corresponding to a growth of 83%, in relation to the previous quarter.

"Coal production and transportation were affected by the late completion of the maintenance process" of the processing units at the Moatize mine and by containment rules to prevent the covid-19 pandemic, Vale explained.

The same coal transportation line is also used by general cargo from the regional and transnational economy, whose segment reached the 126,000 ton mark, "which represents a growth of 65% compared to the first three months of 2021."

A growth recorded even after "the impact of the maintenance works on the railway line connecting Nkaya and Blantyre (in Malawi)" and after the "reduction in international trade associated with the coronavirus."

In the period under review, the company also transported about 55 thousand passengers, representing a growth of 17% compared to the first quarter of this year, which is seen as a sign of "gradual recovery of economic activity.

In today's statement, Vale says it is "committed to leaving a competitive operation" in Mozambique, "while working to ensure a responsible exit" from the country, "seeking an investor who can safeguard the interests of all parties."

Vale's exit from the coal business in Mozambique, "is in line with the company's focus on becoming 'carbon neutral' by 2050 and reducing its emissions by 33% by 2030," he concludes.

Lusa Agency