Vale informs that, on this date, it has entered into a binding agreement
with Vulcan to sell the Moatize coal mine and the Nacala Logistics
Corridor for total proceeds of US$ 270 million, comprised of US$ 80
million at Closing and US$ 190 million from the existing business until
Closing; plus a 10-year Royalty Agreement subject to certain mine
production and coal price conditions. 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. Vale is committed to work together
with both Mozambique and Malawi governments to ensure a smooth
transition to the new operator.
Divestment process
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.
I am pleased to announce this important step for the responsible
divestment of Moatize and NLC, in a transaction that benefits the
communities and governments where those operations are located
and offering a sustainable future for the operations. This is another
accomplishment on our commitment to reshape our company, focusing on
our core businesses,
said Eduardo Bartolomeo, Vale CEO.
- About Vulcan
-
Vulcan is a private company and part of the renowned US$ 18
billion Jindal Group. The Jindal Group 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 Mtpa in
FY21. Jindal Group companies are a signatory to the World Steel
Sustainable Development Charter, 2015 and are also a Climate
Action member with the World Steel Association. These policies
reflect the purpose and intent of the Group towards the United
Nation Global Compact, World Steel Sustainable Development Charter
and the Global Reporting Initiative Standards. The Jindal Group
also has numerous foundations that are pursuing its CSR and
philanthropic initiatives, with primary focus on addressing health
and nutrition needs, drinking water & sanitation, access to
education, women empowerment and others.