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CVRD Signs Mining Contract for Moatize
RIO DE JANEIRO, Brazil, June 28 /PRNewswire/ -- Companhia Vale do Rio Doce (CVRD) announces that the government of Mozambique approved the mining contract for the exploitation of the Moatize coal project, located in the northwestern province of Tete. This event follows the approval of the project development plan by the Mozambican authorities in early June. The contract has a duration of 25 years, which can be extended for additional periods of time, and establishes the tax, international trade and foreign exchange regimes that will govern the CVRD investment in Moatize. This process began in November 2004 and the last steps to be taken include the mining concession and the conclusion of the negotiations with the local railroad and port operators for the logistics contract. The project involves the exploitation of an open pit mine for 35 years, with an estimated average annual production of 11 million metric tons (Mt) of coal products -- 8.5 Mt of metallurgical coal and 2.5 Mt of thermal coal. Roger Agnelli, Chief Executive Officer of CVRD, commented: "This is an important step in our strategy for the coal business. We still need to reach an agreement, which is in the final stage of discussion, involving competitive costs for the logistics of the project," Roger added: "I would like to highlight the support and partnership developed with the government of Mozambique, which were very important for the smooth evolution of this process. I am very happy with it." Web site: http://www.cvrd.com.br
