Vale to build coal-to-liquid plant in Mozambique
The Brazilian mining company Vale is to enter into a partnership with the Portuguese company SGC Energia to build an industrial unit to convert coal into liquid fuel in Moatize district, in the central Mozambican province of Tete.
Vale estimates a liquefied fuel processing plant could produce 300 million litres of fuel a year, of which about half would be used by Vale in Mozambique. The rest would be sold on the domestic fuel market.
High quality coking coal will be exported, while thermal coal will be burnt at a planned power station to produce 300 megawatts of electricity. The remaining, low grade, coal with high ash content will be converted into liquid fuel.