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Friday, November 2, 2018 - 1:27:46 PM
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Mining News Pro - Brazilian mining major Vale has reported that its coal business, which is composed almost entirely of its Moatize coal operation, in the north-eastern Mozambique province of Tete, increased its net operating revenues during the third quarter of this year (3Q18) by $69-million, compared with the second quarter (2Q18).
According to Mining News Pro -Brazilian mining major Vale has reported that its coal business, which is composed almost entirely of its Moatize coal operation, in the north-eastern Mozambique province of Tete, increased its net operating revenues during the third quarter of this year (3Q18) by $69-million, compared with the second quarter (2Q18). Whereas the revenues for 2Q18 totalled $356-million, revenues for 3Q18 came to $425-million. The revenues for the third quarter of last year (3Q17) were $360-million.
Moatize is primarily a metallurgical or coking coal operation, but also produces thermal coal. The net operating revenues for the mine’s metallurgical coal were $284-million in 3Q18, compared with the $261-million of 2Q18 and the $266-million of 3Q17. However, this increase was largely due to higher sales volumes, as the price realised by the company for its metallurgical coal fell by 5.3% during 3Q18, compared with 2Q18 (or $175.9/t in 3Q18 as against $185.9/t in 2Q18). Operating Revenues
Thermal coal net operating revenues in 3Q18 were, at $141-million, significantly up on the 2Q18 figure of $95-million and the 3Q17 number of $94- million. Thermal coal sales benefited from higher realised prices. These were $3.1/t up in 3Q18 (to $89.2/t), compared with 2Q18 ($86.1/t). This increase in realised prices was, the company stated in its ‘Vale’s Performance in 3Q18’ report, “mainly due to higher lagged indexed prices as the market index trended lower in the quarter”.
(The metallurgical coal index price for 3Q18 was $188./t, compared with $190.2/t in 2Q18 and $188.8/t in 3Q17. The thermal coal index price was $101.6/t in 3Q18, compared with $100.3/t in 2Q18 and $86.6/t in 3Q17.)
However, earnings before interest, taxes, depreciation and amortisation (Ebitda) were down. Higher Costs “The adjusted Ebitda of Vale’s coal business was $16-million in 3Q18, $29-million lower than in 2Q18, as higher costs associated with the structural changes being implemented in the business and lower metallurgical coal realised prices more than offset the positive impact of higher sales volumes and lower expenses,” observed the report.
“Costs totalled $433-million in 3Q18, $106-million higher than in 2Q18, mainly owing to higher volumes and the implementation of initiatives associated with the structural changes in the coal segment, such as the increase in removal of overburden, the opening of new mine sections and preparation of selected mining pits for future tailings disposals,” stated the report. “Despite the short-term impact on costs, these initiatives will ensure a sustainable ramp-up of Moatize from 2019 onwards.”
Meanwhile, quite separately, Radio Mozambique has reported that Indian group Sunflag will start mining coal in the Mutarara district of Tete province next year. The project is being executed by Sunflag’s local subsidiary, Sol Mineração Moçambique (Sun Mining Mozambique), and the intent is to export the coal produced to India. The licence was awarded to the group in 2014 and the concession area covers some 4 000 ha. At the time of the announcement of the award, it was stated that Sunflag was going to invest $222-million in the project.
According to Sol Mineração Moçambique, the feasibility studies have identified 115.46-million tons of coal in the concession area, at least 44.9-million tons of which can be commercially exploited. This total is made up of some 17.3-million tons of metallurgical or coking coal and about 27.6-million tons of thermal coal. Concession Area According to the Mutarara district authorities, the concession area also contains gold, which is currently being exploited by artisanal miners from Malawi and even the Democratic Republic of Congo.
The Sunflag group’s main operating business is Sunflag Iron & Steel. It has a steel plant in Bhandara, Maharashtra state, in India, which has an annual production of 360 000 t of high-quality speciality steels.
Short Link:
https://www.miningnews.ir/En/News/291200
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