Vale has agreed to offload its Moatize coal mine in Mozambique and a connected railway corridor to India’s Jindal Group subsidiary Vulcan Minerals, in a deal worth $270m.
This transaction also includes a ten year royalty agreement, which is conditional on certain mine production and coal price conditions.
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Commissioned in September 2011, the Moatize Mine is located near Tete Province. It is connected by the Nacala Logistics Corridor (NLC) and crosses the Republic of Malawi.
Vale CEO Eduardo Bartolomeo said: “I am pleased to announce this important step for the responsible divestment of Moatize and NLC, in a transaction that benefits the communities and governments where those operations are located and offering a sustainable future for the operations.
“This is another accomplishment on our commitment to reshape our company, focusing on our core businesses.”
The transaction is pending approval from the Mozambique government.
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By GlobalDataIt is part of the Brazilian miner’s efforts to sell coal assets and shift focus on its core businesses while strengthening its position in low-carbon mining industry.
Earlier this year, Vale signed heads of agreement to pick Mitsui’s stakes in the Moatize mine, as well as the 50% interest in the associated NLC.
In June, Vale agreed to pay advance liabilities of nearly $2.5bn related to the financing of the NLC.
The deal aligns with the firm’s strategy to become a carbon-neutral business by 2050.
