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January 21, 2021

Vale to acquire Mitsui’s stakes in Moatize coal mine and infrastructure

Brazilian firm Vale has signed a heads of agreement (HoA) to acquire Japan-based Mitsui & Co's stakes in the Moatize coal mine in Mozambique and Nacala Logistics Corridor (NLC) in south-east Africa.

Brazilian firm Vale has signed a heads of agreement (HoA) to acquire Japan-based Mitsui & Co’s stakes in the Moatize coal mine in Mozambique and Nacala Logistics Corridor (NLC) in south-east Africa.

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The consideration for the mine and logistics assets are $1 each.

The deal enables a restructuring as part of Vale’s plan to exit the coal business and focus on its core businesses and ESG agenda to become carbon-neutral by 2050.

Vale will acquire Mitsui’s 15% stake in the Moatize mine as well as 50% interest in the equity and all other minority credits it holds on NLC.

The HoA will enable the two parties to sign a definitive agreement for the transfer of the interests.

Vale said in a statement: “In a HoA aims to conclude a definitive agreement for the transfer of the interests and the associated loans once all related parties reach an agreement on detailed terms and conditions and both Mitsui and Vale obtain the required internal approvals, and to complete the transfer throughout 2021, following the fulfillment of conditions precedents, including obtaining the necessary consents and approvals.”

Upon completion of the deal, Vale plans to consolidate NCL entities and all of their assets and liabilities including the Nacala project finance.

Vale will also commence the process of divesting its participation in the Mozambican coal business.

Currently, Moatize coal mine is 85% owned by Vale while Mitsui and Empresa Moçambicana de Exploração Mineira (EMEM) own 15% and 5% stakes, respectively.

The NLC project is equally owned by Vale and Mitsui.

In 2017, Vale and Mitsui signed a $2.73bn project financing deal to fund the NLC that will link the Moatize coal mine in Mozambique to the Nacala port.

 

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Dig deeper with our mining equipment forecasts

As ore mines ramp up and come on stream, the total number of active surface machines (including trucks, excavators, shovels, loaders, graders and dozers) is forecast to rise from 141,470 in 2020 to 167,367 by 2025. This will be a CAGR of 3.4% from 2020 to 2025. The largest contributor to this growth is expected to be trucks, particularly smaller-sized trucks with shorter lifespans, used extensively in parts of Asia Pacific. Underground mining equipment is similarly expected to see a CAGR of 2.3% in this same time frame, with the number of mining trucks and loaders/LHDs in active underground mines expected to rise to 19,853 by 2025. GlobalData’s extensive mine-site research and equipment models have been used to build a complete view of mobile mining equipment populations globally for trucks, loaders, graders, dozers, excavators and shovels. This report includes informative breakdowns by each major region and key mining country, and also by major commodity. Read GlobalData’s Global Surface and Underground Mining Equipment: Populations & Forecast to 2025 for a complete view of the market, allowing you to best position yourself for the future.
by GlobalData
Enter your details here to receive your free Report.

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