Vale Group approves new terms for deal with Mitsui & Co in Mozambique

30 September 2016

Brazilian group Vale expects to receive US$768 million dollars from the sale to the Japanese Mitsui & Co of stakes in the Moatize coal mine and Nacala Logistics Corridor in Mozambique, under the new terms of an agreement originally signed in 2014.

The new terms, disclosed to the market on Thursday, include the payment of US$450 million, including US$225 million for a 15% stake in the Moatize coal mine, in which the Brazilian mining group owns 95% and an additional payment of up to US$195 million, the final amount of which will depend on a set of criteria.

Mitsui & Co Group will also pay US$348 million for a 50% stake in the Nacala Logistics Corridor and also undertook to open a credit line of US$165 million for that corridor, which connects the Moatize coal mine to the deep water port of Nacala.

In a statement published in Rio de Janeiro, the mining group said the new terms of the agreement showed the commitment of both Vale and Mitsui in the transaction and reinforce the efforts of the parties to bring the project to finance the mining and logistics operations to fruition.

The two groups intend to raise around US$2.7 billion from financial institutions to expand the business in Mozambique. (macauhub)