Mitsui sells its stake in Mozambique coal mine, logistics corridor in Vale
TOKYO, Jan.21 (Reuters) – Japanese company Mitsui & Co announced on Thursday that it has agreed to sell its stake in the Moatize coal mine and the rail and port projects in the Nacala corridor in Mozambique to Brazil’s Vale, the operator of projects, for $ 1 each.
The move comes as Vale, one of the world’s largest iron ore miners, has separately declared that it has decided to divest its coal business in order to focus on its core businesses and in line with its goal of going neutral. carbon by 2050.
Mitsui said in a statement that he plans to complete the transfer of the stake and associated loans to the Brazilian miner by the end of this year.
Vale will continue to operate the projects after the deal and will eventually consider selling its stake to a third party, Mitsui said.
Mitsui recorded a series of impairment losses totaling 46.7 billion yen ($ 451 million) on its coal and infrastructure assets in Mozambique, bringing the book value of its stake in the Moatize mine to zero. . The Nacala transport corridor still has a book value of around $ 500 million, including its loans.
Mitsui said he was looking at an early loss from the sale. Any financial impact related to the projects has been factored into its October profit forecast for the current fiscal year to March 31, he added.
$ 1 = 103.5,500 yen Report from Yuka Obayashi; edited by Richard Pullin