Vale has agreed to acquire Mitsui & Co.’s stake in the Moatize metallurgical and thermal coal mine and port project in Mozambique, as the Brazilian miner works to exit the fossil fuel and become carbon neutral by 2050. The company is buy-
ing the 15% interest in the venture held by Japanese trading company Mitsui for a token fee ($1), as
well as Mitsui’s interests in the Nacala Logistics Corridor (NLC), a railroad connecting the mine to a nearby port.
Vale’s plan is to consolidate both assets. The transaction is expected to help Mitsui complete its exit from the project this year, after which Vale will begin searching for a third party interested in the assets. Moatize is Vale’s largest venture in the coal sector and has been operational since 2011. The open-pit mining complex has the capacity to produce 22 million metric tons of coal per year, including metallurgical and thermal types. In 2017, Mitsui paid $690 million for its interest in the mine and for a 50% stake in the NLC project.