Vale Sells Moatize to Vulcan
In early 2021, Vale announced it wanted to shed its coal assets, focusing on its core businesses and on its ambition to become a leader in low-carbon mining. Over the past 15 years, Vale has worked in partnership with Mozambique and Malawi governments in the implementation of the Moatize mine and NLC’s 912-kilometer (km) railway for coal transportation.
Vulcan is a privately held company and part of the renowned $18 billion Jindal Group, which has rich experience working in Mozambique with its Chirodzi mine operations, located in the Tete Basin in Mozambique, an opencast mine operating at 5 million metric tons per year (mt/y).
During June, Vale consolidated its position in the Moatize complex, when it purchased Mitsui & Co.’s 15% stake for a token fee of $1. In 2017, Mitsui paid $690 million for its interest in the mine and for a 50% stake in the NLC project. Moatize was 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 mt/y.