[miningmx.com] – ANGLO American said it was likely it would share rail and port infrastructure for Minas de Revuboe, the Mozambique coking coal project in which it announced it would buy a 59.4% stake for A$555m.
“We are hopeful, in fact we think it is likely, that mining companies will work with the [Mozambique] government for an efficient system for use of infrastructure,” said James Harman, head of business development, iron ore and coal, at Anglo.
The other investors in the Revuboe project are Nippon Steel with a 33% stake, and the Korean steelmaker, POSCO (7.8%).
Anglo said in July it would invest in the project by buying the shares of the Australian firm, Talbot Group. Even though it had been linked with the project since 2011, Anglo has yet to consummate the deal.
“As we’re not an owner, I can’t comment on the capital expenditure for the project,” Harman said in response to a question posed at the Coaltrans Mozambique conference, held in Maputo.
He added, however, that the project would probably yield on the higher side of output estimates, about 10 millon tonnes per year (Mtpa), but that this was not enough to justify Anglo building its own infrastructure. “Ten million tonnes is a good figure, but at that level it doesn’t make sense to build our own port or railway,” Harman said.
The project has a reported resource of 1.4 billion tonnes of hard coking and thermal coal suitable for open cut mining. The project partners said in the past, it could support exports of between 6Mtpa and 9Mtpa, most of which would be coking coal.
In his presentation at the conference, Harman said that open access to Mozambique’s infrastructure should be enshrined as a national strategy. There was a risk in the private sector owning concessions. He also called for transparently determined rates for freight.
It’s likely Anglo’s view is informed by the fact it is a relatively late entrant into Mozambique’s coking coal industry.
Rio Tinto consummated the purchase of Riversdale Mining, which owns the Benga coal mine, in 2011, while Vale started production from its Moatize mine in the same year and has said already it would spend $6bn to double production to 22Mtpa.
“We have been interested in Mozambique coal for many years, but we are a bit late to the party,” said Harman. Anglo only opened a representative office in Mozambique this year.
