Japan’s Mitsui is transferring its interest in the Moatize mine project and associated Nacala Corridor rail and port infrastructure project in Mozambique to its partner Vale.
The Brazilian miner will divest from these projects after it gains full control as it plans to strategically exit from the coal business to focus on iron ore sites, Mitsui noted in a statement on Thursday.
Under the agreement, Vale will acquire Mistui’s 15pc stake in the Moatize mine and 50pc equity in Nacala for $1 each with an expected transfer time in 2021.
In September 2020, Mitsui made an investment or loan of up to $500mn in Nacala while Vale’s outstanding balance investment for this project is estimated at $2.5bn. The iron ore company will transfer approximately $300mn to operating expenses for these projects before it begins searching for a third-party to buy them.
Vale expects to reach a production rate of 15mn mt in 2021 and 18mn mt in 2022 at the two processing plants, which were upgraded in November 2020. The acquisition and subsequent divestiture are in line with Vale’s commitment to carbon reduction by 33pc by 2030 and neutrality by 2050.