Brazilian mining group Vale plans to sell off half of its stake in the Nacala Corridor, despite retaining control of the project, the group’s chief executive said in New York Monday.
The Nacala Corridor project involves the mining group, with a current stake of 70 percent, and state port and rail company Portos e Caminhos de Ferro de Moçambique, with the remaining 30 percent. The main focus of the project is construction of a railway between Moatize, in Tete province, and the port of Nacala, in Nampula province, which will be modernised and where a large coal terminal will be built.
At a meeting with analysts, the group’s CEO, Murilo Ferreira, said that the group planned to sell off half of its stake but gave assurances that after the sale it would have one more share than the future buyer, giving it control of the project that will require investment of US$4.4 billion.
Announcing an investment programme of US$14.8 billion for 2014, Murilo Ferreira said that over half of that amount would be spent on expanding iron ore production and its distribution network, on developing an integrated coal operation in Mozambique and on the Salobo copper and gold project in the Brazilian state of Pará.
Murilo Ferreira also announced that the launch of the second phase of Vale’s coal project in Mozambique, Moatize II, had been delayed for a year until the second half of 2015, similarly to the Serra Leste and Tubarão VIII projects, both in Brazil. (macauhub)