Vale has bought a 51% stake in Mozambique logistics firm SDCN to transport coal during the second phase of its Moatize coal project.

SDCN is a majority shareholder of the CDN and CEAR railway concessions, both of which are connected to the region of the Moatize mine.

Moatize is an open pit mine operation with a proven and probable reserves of 1.087 billion metric tons of coal.

The first phase of Moatize will begin in the first half of 2011 and will have a capacity to produce 11 million tons of coal a year, Vale said.