India’s Jindal Group is set to pay US$270 million for Brazilian multinational Vale’s Mozambican and Malawian assets comprising a coal mine and a logistics company, APA learnt here on Friday.
Vale Mozambique said in a statement that it has reached an agreement with Jindal subsidiary Vulcan Minerals under which the Brazilian company would “sell the Moatize coal mine and the Nacala Logistics Corridor (NLC) for total proceeds of US$270 million.”
“I am pleased to announce this important step for the responsible divestment of Moatize and NLC in a transaction that benefits the communities and governments where those operations are located and offering a sustainable future for the operations," Vale CEO Eduardo Bartolomeo said.
The transaction is subject to approval by Mozambique’s Ministry of Mineral Resources and Energy.
The Jindal Group and its subsidiary Vulcan Minerals have rich experience working in Mozambique with its Chirodzi mine operations, located in the Tete Basin in the African country.
Vale announced in early 2021 its decision to no longer own 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 the Mozambican and Malawian governments in the implementation of the Moatize mine and NLC’s 912-kilometre railway for coal transportation, in addition to the revamp of general cargo operations and passengers transportation.