Vale wants responsible withdrawal from its operations in Mozambique

Brazilian mining company Vale assured the Mozambican government that "the company wants to exit Mozambique in a responsible way", leaving assets and workforce with competitive valuea source from the Mozambican executive told Lusa on Monday.

The assurance was given by Vale's Global Coal Director, Paulo Couto, during a meeting with Mozambique's Minister of Mineral Resources and Energy, Max Tonela.

"Vale has assured us that it does not want a hasty exit and is working for a divestment process and for a solution that is the least damaging to the interests of all parties," the source said.

Paulo Couto said that the company is analyzing proposals from six companies interested in keeping the assets in Mozambique, following the divestment decision that the Brazilian firm took, as part of its commitment to be neutral with regard to fossil fuels.

Despite leaving Mozambique, the company wants to leave a competitive operation, and is committed to increasing its coal production in the central Mozambican province of Tete from the current 11 million tons to 20 million tons next year.

Coal is one of Mozambique's main export products and Vale employs about 8,000 people, close to 3,000 of its own employees and the rest subcontracted. Vale justifies its exit with the goal of being carbon neutral by 2050 and reducing some of its main sources of carbon pollution by 2030.

Lusa Agency

Share this article