The addendum includes the extension of the current mining contract for an additional two years, whose end date becomes 31 December 2024.
Mota-Engil’s mining contract with Vale, in Mozambique, will be extended by two years, now totalling US$871 million. The project almost doubles in value, according to information reported on Monday to the Securities and Exchange Commission (CMVM).
“Mota-Engil informs that its subsidiary for the African region has signed an addendum to a mining contract currently underway in Moatize, Mozambique, whose customer is multinational group Vale, S.A., whose total value now stands at US$871 million, an increase of US$427 million compared to the initial value of the contract – US$444 million,” the company said in a statement.
The addendum includes the extension of the current mining contract for an additional period of two years, whose end date becomes 31 December 2024. “With this addendum, the group sees its performance recognised in this contract, originally established in 2017, as well as in the mining area, and strengthens its order book in the Africa region with a medium and long-term contract generating recurring cash-flows,” it added.
This project in Mozambique, awarded by Vale, includes the execution of mining services comprising drilling, supply of explosives, loading and transport of waste rock and coal, at the coal mining project in Moatize, of which the contractor is the concessionaire. Vale is one of the world’s biggest mining companies and the biggest private company in Latin America, based in Brazil and operating on five continents.
