FLSmidth wins large coal project in Mozambique

Company Announcement to the Danish Financial Supervisory Authority No. 01-2013, 11 January 2013

15-1-2013 — /europawire.eu/ — FLSmidth has won a contract worth approximately USD 112m (DKK 658m) from Vale, its long-term Brazilian customer, to supply Material Handling and Mineral Processing equipment for Vale’s Moatize coal mine in the Tete Province of Mozambique.

The material handling equipment to be supplied includes a crushing plant as well as in-plant and stockyard conveyors. The crushing plant consists of a tip bin, feeders, primary, secondary and tertiary sizers as well as supporting steel structures and auxiliaries. The process equipment includes FLSmidth Ludowici reflux classifiers and horizontal belt filters.

Included in the supply is a complete conveyor system with all mechanical and structural components, transfer towers, silos, chutes, magnets, belt scales, lubrication system, skirts and support. The system has been designed using the latest design methods including DEM (Discrete Element Modelling), which will ensure optimum flow of the coal. Safety of operation and construction as well as energy efficiency are key issues in the system design.

The contract includes design, detailing, fabrication, supply, delivery to site, supervision of erection and commissioning together with start-up assistance. In accordance with FLSmidth’s One Source strategy, full life cycle support will be supplied from the FLSmidth service centre in Tete, Mozambique.

FLSmidth has previously delivered a crushing plant and filters for the first phase of the Moatize mine along with a contract for supply of equipment for Vale’s Nacala Port expansion. This second phase of the project will enable Vale to approximately double the production capacity at the mine.

“The coal industry is one of FLSmidth’s six focus industries, and now with the recent acquisition of Ludowici FLSmidth offers a complete range of equipment for this industry – a decisive factor for this order. Furthermore, this contract demonstrates the continued good relationship between the major global coal and iron ore producer Vale and FLSmidth, and it is an important step for FLSmidth towards the planned global market leadership in coal,” Group CEO Jørgen Huno Rasmussen comments.

The order will be booked by the Material Handling division and contribute beneficially to FLSmidth’s earnings until end of 2014.

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Please address any questions regarding this announcement to Group Executive Vice President Carsten R. Lund, FLSmidth & Co. A/S at +45 36 18 18 00.

For further information about FLSmidth, please visit www.flsmidth.com.

Yours faithfully

Pernille Friis Andersen
Corporate Communications & Investor Relations