Mozambique boosted by coal project

Brazilian mining company Vale has launched a ┬ú908.5 million coal mining project in Mozambique. ┬á Vale is the worldÔÇÖs second-largest mining company and the largest producer of iron ore.┬á Mozambique has attracted increasing numbers of foreign investors recently because of soaring mineral prices, and it is speculated that the country will now become the continentÔÇÖs second-largest coal producer behind South Africa, which holds most of AfricaÔÇÖs reserves. ┬á In total, the project is expected to generate 8.5 million tonnes of metallurgical coal, which is used for the production of steel. It will also produce 2.5 million tonnes per year of thermal coal, which is used for electricity generation.┬á The new plant is expected to produce 11 million tonnes of coal a year, to be exported to Brazil, Europe, Asia and the Middle East. ┬á The news is a boost for African commodities, which have plummeted since consumers abroad continue to neglect high-end purchases in the economic downturn. Commodity prices have also been badly affected by waning trade with China, which once had a healthy appetite for buying raw materials in order to fuel its economic boom.┬á Speaking at the inauguration of the project, Mozambique's president Armando Guebuza said he hoped it would better the situation of the country's people. "We want these resources to continue contributing in a sustainable way to the improvement of the living conditions of our marvellous people," he said.