Vale has stated in a statement that it will repay a US$2.5 billion (€2 billion) debt to banks connected to investments in Mozambique to proceed with the sale of the country’s coal industry.
The concessionaires for the Nacala Logistics Corridor delivered an “irrevocable” note to the banks engaged in the “project finance” on Tuesday, Vale said, completing Mitsui’s takeover of the project.
Over 1,000 kilometres of railway track and a port in Nacala make up the logistical corridor, which will be used to export coal mined in Moatize, Mozambique’s interior.
The deal with Japanese firm Mitsui was disclosed in January as part of the process of the Brazilian mining company abandoning coal mining, citing a turnaround with environmental concerns.
“With the simplification of governance and asset management, Vale continues the process of responsible divestment of its stake in the coal business, guided” by “preserving the operational continuity of the Moatize mine and the Nacala Logistics Corridor,” Vale said in the statement.
The multinational is seeking a buyer for the operation in Mozambique and plans to deliver the mine with greater production capacity after work carried out in recent months.
Coal is one of Mozambique’s main export products, and Vale employs around 8,000 people, close to 3,000 of its staff and the remainder outsourced.