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. reports:

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.

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