CVRD’s plans for the project are on a much larger scale to past operations and would provide a huge boost to the Mozambique economy, Mineweb.com reported.

The iron ore mining giant has declined to comment on the plan until a final feasibility study is complete but it is rumoured the project may well become the southern hemisphere’s largest black coal mine.

The company has reportedly commissioned a design for a 21 million tonne per year coal processing plant and is also planning to upgrade a rail link to the coast and construct new port facilities. Estimates put the cost of the project at $US2 billion, Mineweb.com reported.