VANCOUVER (miningweekly.com) – Brazilian miner Vale has completed the sale of its interest in the Mozambique-based Moatize coal project to Japanese miner Mitsui & Co, receiving an initial payment of $733-million.
A further $37-million will be paid after the financing for the project is concluded, Vale said in a press release issued on Monday.
After about three years of negotiations, Mitsui bought a 15% interest in Vale's 95% share in the coal mine. It is also buying half of Vale's 70% stake in the Nacala Logistics Corridor (NLC) – a railway connecting the mine to the Nacala port.
Vale expects the equity transaction to close by month-end, and to raise up to $2.7-billion upon closing of the project financing before December.
The firms have previously stated that any payments or the conclusion of the deal would only take place once financing for the mine and the transportation system was closed. However, Vale said earlier this month that the two processes are being handled separately.
If the signing of the project financing is not achieved by the end of December, Mitsui has certain rights to transfer their participation in the Moatize coal mine and the NLC back to Vale.
Vale's board also announced on Monday that Fabio Schvartsman has been appointed CEO, to succeed outgoing CEO Murilo Ferreira.