RIO DE JANEIRO, BRAZIL – Brazil’s Vale has sold all its coal-related assets after agreeing to sell its coal mine and a logistics corridor in Mozambique to Vulcan Minerals for US$270 million (€240 million), it said in a statement Tuesday.
The transaction also includes a 10-year royalty agreement subject to certain production conditions at the mines and the price of coal. The completion of the sale is also subject to the fulfillment of specific regulatory requirements.
The divestment of these assets is in line with the group’s strategy of focusing on its core businesses and becoming a leader in low-emission mining.
Last year, the firm divested its assets in a nickel mine in New Caledonia, sold 50% of its stake in California Steel Industries for US$400 million (€355 million), and raised US$1.3 billion (€1.153 billion) from the sale of shares in Mosaic.
“I am pleased to announce this important step for the responsible divestment of Moatize and CLN in a transaction that benefits the communities and governments where those operations are located and provide a sustainable future for the operations,” noted Vale CEO, Eduardo Bartolomeo.
The Mozambique coal operation was the last significant asset in Vale’s divestment portfolio. The remaining targets are a 40% stake in Brazilian bauxite producer MRN and Brazilian steel producer CSP.