Brazilian miner and iron ore producer Vale has signed a binding agreement to sell its Moatize coal mine as well as its Nacala Logistics Corridor of Vulcan Minerals for $270 million, Vale said on Tuesday. Vulcan Minerals is a subsidiary of Jindal Group.
The asset sale is part of Vale’s divestment process, which include buying both the Moatize and the Nacala Logistics Corridor from Mitsui to then sell it, so the miner could focus on its core business. Vale said that out of the $270 million asset sale, it will get $80 million immediately and $190 million at the close of the deal.
Vale said the transaction also includes a 10-year royalty agreement, which is related to the mine’s output and coal price conditions. Vale said the deal is subject to approval by the Mozambican authorities.