Vale will bring forward the settlement of a US$2.5 billion bank debt related to investments in Mozambique to move forward with the sale of its coal business in the country, the company said in a statement.
The concessionaires of the Nacala Logistics Corridor on Tuesday sent the banks involved in the ‘project finance’ an “irrevocable” note to settle the remaining amount on 22 June, Vale announced, thus concluding the acquisition of Mitsui’s stake in the venture.
The logistics corridor involves over 1,000 kilometers of railroad and a port in Nacala to export coal mined in Moatize, in the interior of Mozambique.
The agreement with the Japanese firm Mitsui was disclosed in January as part of the process of abandoning coal mining by the Brazilian minera, citing a turnaround with environmental concerns.
“With the simplification of governance and asset management, Vale continues the process of responsible divestment of its stake in the coal business, guided” by “preserving the operational continuity of the Moatize mine and the Nacala Logistics Corridor,” Vale said in the statement.
The multinational is seeking a buyer for the operation in Mozambique and plans to deliver the mine with greater production capacity after work carried out in recent months.
Coal is one of Mozambique’s main export products and Vale employs around 8,000 people, close to 3,000 of its own workers and the remainder outsourced.
