Vale informs that it entered into a binding agreement with Vulcan Minerals to sell the Moatize coal mine and the Nacala Logistic Corridor (CLN) for a total of US$ 270 million, comprising US$ 80 million at the conclusion of the transaction and US$ 190 million from the existing business to completion; plus a 10-year Royalty Agreement subject to certain mine production conditions and coal pricing.
“I am pleased to announce this important step in the responsible divestment of Moatize and CLN, in a transaction that benefits the communities and governments where these operations are located and offers a sustainable future for the operations. This is yet another achievement of our commitment to reshape our company, with a focus on our main businesses”, highlights Eduardo Bartolomeo, CEO of Vale.
In a statement sent to the Brazilian Securities Commission (CVM), the company said that the conclusion of the transaction is subject to compliance with the usual conditions precedent, including the approval of the Ministry of Mineral Resources and Energy of Mozambique under the terms of Mining Law nº 20/ 2014, and the approval of the Government of Mozambique under the terms of the Concession Agreements for the change of control and antitrust. “Vale is committed to working together with the governments of Mozambique and Malawi to ensure a smooth transition to the new operator,” he says.
The miner recalls that in early 2021, it announced its goal of no longer owning coal assets, focusing on its core businesses and its ambition to become a leader in low-carbon mining. “Over the last 15 years, Vale has worked in partnership with the governments of Mozambique and Malawi to implement the Moatize mine and the 912 km of CLN railway for the transport of coal, in addition to the renewal of general cargo and passenger transport operations. ”, he says.
These investments, according to the company, represent a relevant legacy for the countries and are an important vector for local development. While conducting a responsible search for an investor in the coal business, Vale continued to support the ramp up project and its commitments to society and stakeholders.
Vulcan is a privately held company that is part of the $18 billion Jindal Group. Jindal Group has extensive experience working in Mozambique with the Chirodzi mine, located in the Tete Basin of Mozambique, an open pit mine operating at 5 Mtpy in 2021.
Jindal Group companies are signatories of the World Steel Sustainable Development Charter, 2015, and are also members of the Climate Action of the World Steel Association. These policies reflect the Group’s purpose and intent in relation to the United Nations Global Compact, the World Steel Sustainable Development Charter and the Global Reporting Initiative Standards. Jindal Group also has several foundations that pursue Corporate Social Responsibility and philanthropy, with a primary focus on meeting the needs of health and nutrition, clean water and sanitation, access to education, women’s empowerment and others.
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