Vale is building in Moatize one of the world’s largest coal handling preparation plants (CHPP)

Rio de Janeiro, March 27, 2009 – Companhia Vale do Rio Doce (Vale) informs that the construction of the Moatize Project, in the province of Tete, Mozambique, is in progress.

Moatize, Vale’s first greenfield project in Africa, has proven and probable reserves of 838 million metric tons, being one of the world’s largest unexploited coal reserves. It has high quality metallurgical coal – hard coking coal – which is traded at a premium over prices of other types of coal.

The project involves an investment of US$ 1.3 billion and it will have a nominal capacity to produce 11 million metric tons (Mt) of coal, of which 8.5 Mt of metallurgical coal and 2.5 Mt of thermal coal. The start up is expected for December 2010.

Vale is building in Moatize one of the world’s largest coal handling preparation plants (CHPP) in an operational site, with capacity to process 26 million metric tons of coal per year.

Coal production from the Moatize mine will be transported by a railroad approximately 600 km in length to a new maritime terminal in the port of Beira, province of Sofala, Mozambique. The coal terminal will be built by a concessionary owned by the Mozambican government.

Vale’s project in Moatize also involves initiatives dedicated to investment in human capital (health, education and professional training), the creation of infrastructure and the development of sustainable economic activity (a model farm for cattle raising and agriculture) to create jobs and generate income flows for the local population. The model is consistent with Vale’s strategic priority of corporate social responsibility and establishes a new benchmark for project development on the African continent.

Vale’s investment in the Moatize project is in line with our growth strategy for the coal business, through which Vale aims to become, in the medium term, one of the largest global producers.

Currently, Vale produces metallurgical and thermal coal in its operations in Australia, in the states of New South Wales – Hunter Valley – and Queensland – Bowen Basin –, and has two joint ventures to produce coal and coke in China. In December 2008 we acquired coal assets in Colombia, including a mine with nominal capacity to produce 4.5 Mt of thermal coal, deposits under exploration and logistics infrastructure. Moreover, Vale has projects under different stages of development in Australia and Mongolia.

INSIDE SINAL

SINAL Empreendimentos e Consultoria, Lda Is a young company established in Tete aiming to provide Consultancy and Technical Assistance in the subjects of inhabitation, environment, GIS, Geology, Water and Environment. The growing demand of these services in the region of Tete has given support for the establishment of the company. This company is led by a young team which experience and knowledge on these issues is their most valuable treasure.

SINAL is seeking opportunities to establish partnership with companies around the globe. The great advantage on us is the fact that we established at home and thus have gone steps ahead on the knowledge of the area and we for sure know how much valuable can a business become is if it has our support.

Geological Surveying, mineral exploration environment and inhabitation are issues that we have given our hand on and had acquired a lot of personal experience that fully enriched our team. There is a lot of ground to go ahead and we know that there’s still much to do for our economical and professional satisfaction. That’s why we bet on challenges and invite you to join us if you are looking for professional responses on: Natural Resources:Identification and Geological Field Survey and Mapping of Mineral Reserves,GIS and Resources Modeling ,Hydrology and Hydrogeology Environmental studies and House Planning .

We also provide assistance on:Industry, commerce and tourism,Training and support on GIS and Modeling, and Database Development and data Management.

TETE CITY AREA

TETE CITY AREA

The wheather

Like as it happens everywhere in the country, this region is hot in summer and cool dry in the winter. Occasionally there are short separated windy and raining seasons mainly in September for the first and November to February for the second period. The main landscape view in the area are mountains standing up 150 meters from the ground, the baobab trees and some flat areas covered by native grass and brownish colored trees . Zambezi and Rovubuè are the main major river covering the area, although there are found another medium sized seasonal river that may stand completely dry all year long . Heavy rain and storms are likely to happen during the dry period but without severe damage on the public infrastructures and people’s goods.

The landscape

The main landmarks of the area are the mount Carroeira and the Zambezi river and it’s bridge . The mount Carroeira‘s top level stands at four hundred meters above the sea level and two hundred from the ground. This mountain can even be seen from a distance over three hundred kilometers in a clear day and in the nights lights on the antennas are used as reference for travelers by road and the airways companies. From the top of Carroeira Tete city area with the buildings in it seems to be right under your feet and staying there gives one a such a feeling of free floating sense. Starring at The most featuring scenario: The Zambezi River looks tired after hydroelectric production at Cahora Bassa Dam sixty kilometers from this point. The River’s gently rides toward the downtown cutting it in two halves then stretches it along its margins which are connected by a suspension bridge.

The suspension bridge has two way driving lanes and stretches its body for nine hundred meters to connect Tete downtown to Matundo area and the toll gate. Maintenance work on the structure of the bridge is taking place and time up to the final delivery is estimated in months. After that, and once again this giant will ensure easy traffic of vehicles both sides connecting Lilongwe and Blantyre in Malawi, Lusaka in Zambia and Harare in Zimbabwe.

Moatize Buisiness Oportunities

Moatize is a small village in the western province of Tete in Mozambique. The village is 20 minutes drive from Tete City and it lays along the road to Zóbué border with Malawi. Moatize is as said by most who visit the area to be at re-born period after years of steady state sleeping since world top mining companies have come to town for coal mining.

In October 2009 the village will connect the sea port of Beira through arround 600 hundred kilometers of rail and a land port in the village will be settled and become the 4th main port of the country. Moatize is the only point in the country that lays half hour fly from local airport to at least 4 Southern Africa capitals. Through road it links Blyntyre, lilongwe, Harrare, Lusaka and Johannesburg. In time being and as in past the inland countries: Malawi and Zambia are linked to Beira port through road that crosses Moatize. As kown these country's comodities are imported through road by large truck lines.

Econonical Setting

Moatize is economically growing faster as the mining companies has brought with them tens of service supply companies and workers from everywhere in the world. Due to this Moatize buisiness oportunities are expanding faster in a market that has lack of basic products. Among the most demanded service, accomodations is ranking number one at the moment and with it restaurantion and entertainment following by infraestructure construction.

With the advent of the land port in the village, the distance from the sea port of Beira to the sorrounding countries will be shortened. The land port is expected to have the largest truck terminal in the country. in time being the the truck circiulation in moatize is almost 80% of traffic with an average of 200 trucks a day.

Phandwe Housing Project

The Phandwe Housing Project so known as PHP desiged by SINAL, will be settled at Phandwe area which lays 6.0 km from the Tete City and 2.0 km from the Chingondzi International Airport. The project in a bush area of 25 ha offers a unique landscape view downward to the city and the Zambezi river and the airport as it stands in small high elevation gound.

SINAl, the company in charge of project implementation expects full success of the initiative as coming people to work in the town are seeking self housing and the number of the registerd subscribers surpass the projected number of houses.

As expected PHP foresees one big boom in housing buisiness and seeks investiment partners which aim to grow their buisiness among the following areas:

- Hotel/Lodge or other accomodation infraestruture,

- Game Park and Spa,

- Entertainment,

- Flower and Garden.

Interrested companies or individuals are welcome to join SINAL and will kindly be supplied with additional information of PHP as well as an other information concerning other buisiness oportunities arround Moatize area.

Please contact:

SINAL, Emprendimentos e Consultoria,Lda

Tete City,

Steia Yard

+258 82 30 12 183
e-mail to: ilidio.cumbane@gmail.com

Mozambique