Brazilian mining group Vale and Japanese industrial group Mitsui have reviewed the terms of their coal deal related to the divestment of part interest in the Moatize coal mine and the Nacala Logistics Corridor (NLC) in Mozambique.
Under the new terms, Mitsui agreed to contribute up to US$450m, including US$255m for a 15% of Vale's stake in the Moatize coal mine (Vale currently holds 95% of the equity interest of the Moatize coal mine) and an additional contribution of up to US$195m based on meeting certain conditions, including mine performance. Mitsui will also contribute US$348m for a 50% stake in the equity and quasi-equity instruments of the NLC and extend a long-term facility of US$165m to the NLC.
The Moatize coal mine has been producing coal since July 2011 and is expected to reach a full production capacity of 22 Mt/year of coal ore. Coal is exported through two African railroads that connect to ports, namely the existing Sena railroad (transportation capacity of 6 Mt/year of coal) and the 237 km long Nacala Corridor project (transportation capacity of 18 Mt/year).