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.
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.
In 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.