Brazilian mining company Vale has agreed new terms relating to the sale of a portion of its interest in the Moatize coal mine and the Nacala Logistics Corridor (NLC) to Mitsui & Co.
The original deal was announced in December 2014.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Under the new terms, Mitsui will contribute $255m to acquire a 15% of Vale’s stake in the Moatize coal mine.
At present, Vale holds 95% of the equity interest of the mine.
Mitsui will also contribute up to $195m based on meeting certain conditions, including mine performance.
Furthermore, Mitsui will contribute $348m for a 50% stake in the equity and quasi-equity instruments of the NLC.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataIn addition, the company will extend a long-term facility of $165m to the NLC, which will transport coal from Moatize to port.
Upon completion of the transaction with Mitsui, Vale hopes to receive $768m and up to $2.7bn upon closing the project financing.
Moatize is expected to pay logistics service tariffs to the NLC to support repayment of the $2.7bn project finance package.
The agreement will reinforce Vale and Mitsui’s focus on completing the project financing for the NLC.
