Brazil Pledges Increased Investment In Africa

Brazil Pledges Increased Investment In Africa

Brazilian mining giant, Vale has said it plans to invest in 15 to 20 billion dollars in projects in Africa over the next five years.

The figure is up from the 2.5 billion dollars spent on projects in Africa so far.

The world's largest iron ore miner said it could become one of the top three copper producers on the continent, where there are high grades of the metal.

Vale said it was also targeting significant investments in coal and iron ore.

Investment interest in Africa

Vale and a number of other Brazilian firms have expanded their interests in Africa under President Luiz Inacio Lula da Silva, who steps aside this year, having led a diplomatic push onto the continent and urging Brazilian firms to increase investment in Africa .

The company said most of the money would be spent in Mozambique , Zambia , Guinea and Liberia .

It puts the total investment in Africa so far at 2.5 billion dollars but noted that as most of the projects were in the exploration phase, there was a chance to significantly increase its investment.

Vale said the high-grade copper in the copper belt means the capital required to have an operation there was not high compared to other regions.

Projects In DRC, Angola and other areas

Vale has a 1.3 billion dollars coal project in Mozambique that is due to begin production next year. It also has a stake in the vast Simandou iron ore deposit through a 2.5 billion dollars deal with BSG Resources.

The company is also exploring copper opportunities in Democratic Republic of Congo and Angola , while it has an exploration programme for coal in Tanzania .

Vale is due to unveil its spending plans for 2011 but a source close to the company said it would invest at least 20 billion dollars next year, up from 12.9 billion dollars of planned spending this year.

REUTERS/Williams/Yinka