Vale registered record coal production in Q1 as it announced its best results since Q1 2008, posting an adjusted EBITDA of US$4.058 billion. Despite the record production, however, the coal business still made a loss of US$162 million as the company’s operations continue to be hit by the “subutilisation” of its asset base at Moatize, Mozambique, due to logistical bottlenecks.
Meanwhile, Vale’s Australian coal operations at Carborough Downs were hit by a longer than expected longwall move with sales volumes down significantly.
Continued investment in Mozambique coal infrastructure
Vale continued to invest in ramping up both Moatize and the associated logistics structure, the Nacala corridor. Moatize II achieved 61% physical progress in Q1, with civil construction work for the rail loop initiated and civil construction work concluded at the primary crusher, conveyor belt and processing plant.
The port and railway reached 53% and 46% physical progress in Q1, respectively. At the Port of Nacala, the company finalised the pile driving for the access bridge and berth. Construction of over 50% of the railway bridges was concluded in the railway section in Malawi. In the Mozambique segment, Vale completed 30 km of railway track for the brownfield part.
Written by Jonathan Rowland
Read the article online at: https://www.worldcoal.com/coal/01052014/vale_announces_record_q1_coal_production_coal789/