Japan’s Mitsui & Co has agreed to sell its stake in the Moatize coal mine and Nacala Corridor rail and port projects in Mozambique to Brazil’s Vale, the operator of the projects.
Vale, one of the world’s biggest iron ore miners, said separately it has decided to divest its coal business in a bid to focus on its core operations and in line with its aim of becoming carbon-neutral by 2050.
Mitsui said in a statement it plans to complete the transfer of the stake and associated loans to the Brazilian miner by the end of this year, for the symbolic price of USD1 each.
In March 2017, Mitsui acquired, from Vale, a 15% equity interest in a Vale subsidiary that owns a 95% equity interest of the Moatize Project, and a 50% equity interest in another Vale subsidiary that is implementing the Nacala Project.
“Since then, Mitsui has worked to develop the Projects and improve their operations. However, Vale made a decision to divest its coal business to concentrate on its core activities, and in accordance to its ESG agenda. In response, Mitsui decided to sell its equity stake to Vale in the context of reorganization and restructuring of asset portfolio”, the statement adds.
Vale will continue to operate the projects after the deal and will ultimately consider divestment of its interest to a third party, Mitsui said.
Mitsui has posted a series of impairment losses, totalling 46.7 billion yen (USD 451 million), on its Mozambique coal and infrastructure assets, taking the book value of its stake in the Moatize mine to zero.
The Nacala transport corridor still has a book value of about USD 500 million, including its loans.
Mitsui said it is reviewing an anticipated loss from the sale.
