Brazilian miner Vale SA said on Monday it has wrapped up the sale of a stake in Mozambique’s Moatize coal project to Japan’s Mitsui & Co Ltd and received an initial payment of $733 million, the company said in a security filing.
The remainder of the $770 million transaction will be paid after the financing for the project is concluded, Vale said.
The Japanese company acquired 15 percent of Vale’s 95 percent share in the coal mine. It is also buying 50 percent of Vale’s 70 percent stake in the Nacala logistics corridor, a railway system connecting production at the mine to the Nacala port in Mozambique.
Vale said it expects to receive by the end of this month an initial payment of $733 million from Mitsui from the equity sale. The company said it would receive $2.7 billion more after the financing for the project of the mine and the transportation system is concluded.
Vale has been in talks with Mitsui over the Moatize mine for almost three years. The firms previously had said any payments or the conclusion of the deal would only take place once financing for the mine and the transportation system was sealed.
Mitsui will have an option to transfer back to Vale the stake in the project if financing is not completed by December.
(Reporting by Anthony Boadle; Editing by Diane Craft and Bill Trott)
Get the best of CNBC Africa sent straight to your inbox with breaking business news, insights and updates from experts across the continent. Sign up here.