Brazilian miner and iron ore producer Vale said this week it has signed the definite investment agreement to buy Mitsui’s shares in both the Moatize and Nacala projects. Vale said it expects to conclude the transactions this year.
The acquisition of Mitsui’s shares in the projects is Vale’s first step to disinvest from its coal businesses. Vale said the deal with Mitsui is in line with the company’s strategic goal of allocating resources into core businesses. It will also help the company achieve its goal of simplifying its business portfolio.
“Mitsui plans to liquidate Mitsui & Co. Mozambique Coal Finance Ltd. (MMCF), which provides loans for the Moatize Project, and Mitsui & Co. Nacala Infrastructure Finance Limited (MINFI), which provides loans for the Nacala Project after the transfer of the loans held by both companies to Vale and the completion of the decrease in paid-in capital for both companies,” Mitsui said in a separate document filing this week.