Mozambican authorities were considering allowing Brazil's Companhia Vale do Rio Doce (CVRD) to start the Moatize coal project in 2010, which would target one of the biggest unexplored coal deposits in the Southern Hemisphere, the company said on Thursday.

CVRD, the world's largest iron ore producer, has delivered to the Mozambican government financial and technical feasibility studies, which started 24 months ago with the aim of clearing up any doubts about the project.

"If there is the need for CVRD to correct any aspect, we will recommend that within 60 days," said Mozambique's Minister of Mineral Resources Esperanca Dias.

The project was estimated at 2 billion U.S. dollars with expected coal deposits of 2.4 billion tons. A consortium led by CVRD proposed an initial investment of 122.8 million dollars. CVRD holds 95 percent of the consortium's shares, while a U.S. company, American Metals, keeps the other 5 percent.

The feasibility studies conducted during the last two years were part of CVRD's commitments to the Mozambican government for the exploitation of the Moatize coal deposits in the province of Tete.

Over the last couple of years, CVRD has invested approximately 80 million dollars in the Moatize project.

Source: Xinhua