Brazilian mining giant Vale has entered into a binding agreement with Vulcan to sell the Moatize coal mine and the Nacala Logistics Corridor in Mozambique for total proceeds of USD 270 million, comprised of USD 80 million at Closing and USD 190 million from the existing business until Closing; plus a 10-year Royalty Agreement subject to certain mine production and coal price conditions. Vulcan is a private company and part of Jindal Steel & Power Limited. JSPL has rich experience working in Mozambique with its Chirodzi mine operations, located in the Tete Basin in Mozambique, an open cast mine operating at 5 million tonne per annum in FY21.The Closing of the transaction is subject to the satisfaction of customary conditions precedent, including the approval of the Ministry of Mineral Resources and Energy of Mozambique pursuant to the Mining Law No. 20/2014, and the approval of the Government of Mozambique pursuant to the Concession Agreements for the change of control and antitrust.In early 2021, Vale announced its objective to no longer own coal assets, focusing on its core businesses and on its ambition to become a leader in low-carbon mining. Over the past 15 years, Vale has worked in partnership with Mozambique and Malawi governments in the implementation of the Moatize mine and NLC’s 912-km railway for coal transportation, in addition to the revamp of general cargo operations and passengers transportation. These investments represent a relevant legacy to the countries and are an important driver for local development. While conducting a responsible search process for an investor in the coal business, Vale continued to support the project's ramp-up and its commitments to society and stakeholders.
Brazilian mining giant Vale has entered into a binding agreement with Vulcan to sell the Moatize coal mine and the Nacala Logistics Corridor in Mozambique for total proceeds of USD 270 million, comprised of USD 80 million at Closing and USD 190 million from the existing business until Closing; plus a 10-year Royalty Agreement subject to certain mine production and coal price conditions. Vulcan is a private company and part of Jindal Steel & Power Limited. JSPL has rich experience working in Mozambique with its Chirodzi mine operations, located in the Tete Basin in Mozambique, an open cast mine operating at 5 million tonne per annum in FY21.The Closing of the transaction is subject to the satisfaction of customary conditions precedent, including the approval of the Ministry of Mineral Resources and Energy of Mozambique pursuant to the Mining Law No. 20/2014, and the approval of the Government of Mozambique pursuant to the Concession Agreements for the change of control and antitrust.In early 2021, Vale announced its objective to no longer own coal assets, focusing on its core businesses and on its ambition to become a leader in low-carbon mining. Over the past 15 years, Vale has worked in partnership with Mozambique and Malawi governments in the implementation of the Moatize mine and NLC’s 912-km railway for coal transportation, in addition to the revamp of general cargo operations and passengers transportation. These investments represent a relevant legacy to the countries and are an important driver for local development. While conducting a responsible search process for an investor in the coal business, Vale continued to support the project's ramp-up and its commitments to society and stakeholders.
