Brazil's mining giant Vale SA announced on December 21 to sell its Moatize coal mine in Mozambique to Vulcan Minerals for $270 million, and the sale also includes Nacala Logistics Corridor.
The binding agreement specified Vale will receive $80 million immediately and the rest $190 million when the deal is done. The deal also includes a 10-year royalty agreement for the mine's production and coal prices.
The completion of the transaction must abide by the customary conditions, including the approval of the Ministry of Mineral Resources and Energy of Mozambique.
The sale of Moatize is part of the Brazilian producers' strategy to achieve carbon neutrality by 2050. In early 2021, the company said it will no longer run coal operations and focus on its core business to be a leader in low-carbon mining.
(Writing by Rebecca Liu Editing by Tammy Yang)
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