May 17, 2020

Rio Tinto to Sell Mozambique Mines to India Coal Group

Rio Tinto
International Coal Ventures Private Limited
Rio Tinto
2 min
Rio Tinto to Sell Mozambique Mines to India Coal Group
Mining behemoth Rio Tinto (LSE:RIO) is expected to sell three of its coal mines in Mozambique to a group of Indian state-run metal and mining companies...

Mining behemoth Rio Tinto (LSE:RIO) is expected to sell three of its coal mines in Mozambique to a group of Indian state-run metal and mining companies for $108 million.

According to reports, India’s International Coal Ventures Private Limited (ICVL) will purchase 65 percent of the Benga coal operation in the Tete province of Mozambique, and 100 percent in the other two coal projects – Tete East and Zambeze.

"We expect the deal to be signed over the next three to four days," said a government official involved with the negotiations.

The acquisition will be the first for ICVPL, which was set up in 2009 to buy assets abroad by government-run companies including Steel Authority of India Ltd., Coal India Ltd. and power producer NTPC Ltd.

The proposed deal isn't surprising. Existing coal mines in India have been failing to meet targets, forcing the country to import coal. India’s electricity shortage climbed to 7,000MW in May.

Output for the three mines, including metallurgical coal and thermal coal, came to 733,000 tons in the first half of 2014. If the proposed deal goes through, the acquisition will assist ICVL in achieving its 2019-20 target of owning 500 million tons of coking coal reserves five years in advance.

Rio Tinto originally purchased the mines in 2011 when it acquired Riversdale Mining Ltd for $3.7 billion. Ironically, ICVL made a bid to acquire the Benga mine but lost out to Rio Tinto in the process. 

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Jun 29, 2021

Vale invests $150mn to extend life of Manitoba operations

battery metals
2 min
Vale’s $150mn investment in operations at Thompson, Manitoba will extend mine life by 10 years

Vale has announced a $150mn CAD investment to extend current mining activities in Thompson, Manitoba by 10 years while aggressive exploration drilling of known orebodies holds the promise of mining well past 2040.

Global energy transition is boosting the market for nickel

The Thompson Mine Expansion is a two-phase project. The announcement represents Phase 1 and includes critical infrastructure such as new ventilation raises and fans, increased backfill capacity and additional power distribution. The changes are forecast to improve current production by 30%.

“This is the largest single investment we have made in our Thompson operations in the past two decades,” said Mark Travers, Executive Vice-President for Base Metals with Vale. “It is significant news for our employees, for the Thompson community and for the Province of Manitoba.

“The global movement to electric vehicles, renewable energies and carbon reduction has shone a welcome spotlight on nickel – positioning the metal we mine as a key contributor to a greener future and boosting world demand. We are proud that Thompson can be part of that future and part of the low carbon solution.”

Vale continues drilling program at Manitoba

Coupled with today’s announcement, Vale is continuing an extensive drilling program to further define known orebodies and search for new mineralization.

“This $150mn investment is just one part of our ambitious Thompson turnaround story. It is an indicator of our confidence in a long future for the Thompson operations,” added Dino Otranto, Chief Operating Officer for Vale’s North Atlantic Base Metals operations.

“Active collaboration between our design team, technical services, USW Local 6166, and our entire Thompson workforce has delivered a safe, efficient and fit-for-purpose plan that will enable us to extract the Thompson nickel resources for many years to come.”

The Thompson orebody was first discovered in 1956 by Vale (then known as Inco) following the adoption of new exploration technology and the largest exploration program to-date in the company’s history.  Mining of the Thompson orebody began in 1961.

“We see the lighting of a path forward to a sustainable and prosperous future for Vale Base Metals in Manitoba,” said Gary Annett, General Manager of Vale’s Manitoba Operations.

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