Brazilian miner acquires Mozambique coal mine as part of exit strategy.

Vale SA (NYSE : VALE) has inked a deal to acquire Mitsui & Co’s stake in the Moatize metallurgical and thermal coal mine and port project in Mozambique, as the Brazilian miner works to exit the fossil fuel and become carbon neutral by 2050.

The company is buying the 15% interest in the venture held by Japanese trading company Mitsui for a token fee ($1), as well as Mitsui’s interests in the Nacala Logistics Corridor (NLC) — the railroad connecting the mine to a nearby port.

Vale’s plan is to consolidate both assets ahead of a future sale that will allow it to kiss coal goodbye.

The transaction is expected to help Mitsui complete its exit from the project this year, after which Vale will begin searching for a “third party” interested in the assets.

22 April 2021

IEEFA