Brazil’s Vale says Mitsui & Co still interested in projects in Mozambique

1 April 2016

Japanese group Mitsui & Co is still interested in investing in the Vale group’s projects in Mozambique despite impairment charges taken by Vale on such investments, the Brazilian group said in a statement to the market.

The group also said in the statement issued Thursday that Mitsui & Co continues to support negotiations with Nexi (Nippon Export and Investment Insurance) and JBIC (Japan Bank for International Cooperation) for the financing model, citing a statement released by the Japanese group.

Coal mining in Moatize, in Mozambique’s Tete province, has been costing the Vale group a loss of US$500 million a year, according to the annual report released last February.

Impairments assumed by the group for Mozambique – US$2.4 billion – were the second highest included in the accounts, and the larger ones – US$3.46 billion – were for a nickel mining project in Canada.

Mitsui & Co group agreed in 2014 to pay US$763 million dollars for stakes in Vale’s projects in Mozambique – the Moatize coal mine and the Nacala port and railway – but to date there have been no further developments. (macauhub/BR/MZ)