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Mozambique Will Receive $20M Capital Gains from Sale of Vale Assets

Mozambique Will Receive $20M Capital Gains from Sale of Vale Assets

Mozambique will receive US$20 million in capital gains from the sale of assets from Brazil’s Vale to India’s Vulcan, the Mozambican Minister of Mineral Resources and Energy said in Maputo.

Carlos Zacarias, who was speaking at the end of a meeting between the Mozambican President, Filipe Nyusi, and representatives of Vulcan, said that the two companies and the Tax Authority (AT) of Mozambique are in negotiations aimed at a definitive clarification of the amount payable to the Mozambican state for the deal.

“The Tax Authority, the seller and the buyer are in discussions for the clarification of the actual amount to be paid,” he pointed out.

As part of the operation, the Indian multinational will carry out investments in the mines and logistics component that it bought from Vale, also maintaining jobs, he added.

The Minister of Mineral Resources and Energy said that the probable destination of the coal to be extracted from the mines will be Vulcan’s steel factories in India.

At the end of April, Vale announced it had concluded the sale of coal mining assets in Mozambique to India’s Vulcan Minerals, a deal worth $270 million (253 million euros).

“Vale communicates that it concluded on April 25, 2022 the process of responsible transfer of the Moatize operation and the Nacala Logistics Corridor to Vulcan Resources, based on the binding agreement for the sale of assets,” Vale Mozambique said in a statement to the media in December.

The mines are located in the province of Tete, central Mozambique, and, according to Vale, the transaction complied with the conditions defined by law.

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Vale has been present in Mozambique for 15 years, having operated the Moatize mine and 912 kilometers of railroad in the Nacala Logistics Corridor for the transport of coal.

In early 2021 the company announced its intention to “divest from its coal assets” and invest in “low carbon mining”.

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