Mozambique: Moatize Coal Mine
Brief on IFC's PPP advisory support to the government of Mozambique on selecting a developer for the Moatize coal deposit in the Zambezi Valley.
In November 2004, IFC advised the government of Mozambique on selecting a devel- oper for the Moatize coal deposit in the Zambezi Valley. The project was intended to serve as anchor project to develop the Zambezi Valley, increase economic activity, and improve local social conditions while also contributing to the country’s income.
Brazil’s Companhia Vale do Rio Doce (CVRD) paid $130 million for the right to explore and develop the coal deposit. CVRD’s proposal included an integrated feasibility study for the project and the associated railway and port infrastructure, plus studies to develop a 1,500 megawatt coal-fired power plant, along with pre-feasibility studies for other industrial projects. CVRD also spent over $7 million on community develop- ment projects during the project exploration phase and more than $80 million on the feasibility study.
