Company Announcement to the Danish Financial Supervisory Authority No.
01-2013, 11 January 2013
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
[HUG#1669775]
