Assets owned by Vale in Mozambique lose US$2.4 billion in value

Vale

Brazilian group Vale in its 2015 accounts took an impairment in the amount of US$2.403 billion relating to coal assets in Mozambique, which are now worth US$1.729 billion, according to the performance report.

The affect on the 2015 results of the impairment charges related to Mozambique, whose operation continues to lose US$500 million a year, was the second largest for Vale, after a US$3.46 billion impairment related to a nickel mining project in Canada at subsidiary Vale Newfoundland and Labrador.

Overall, the group absorbed impairment charges in the amount of US$8.569 billion, and the assets involved are now worth US$14 billion.

The same performance report for 2015 stated that in Mozambique the group posted a loss of US$508 million, similar to the US$506 million recorded in 2014.

The Vale group has not yet closed a deal with Mitsui agreed in December 2014, under which the Japanese group would pay US$450 million for 15 percent of the coal mine in Moatize and another US$313 million for half of the 70 percent Vale controls in the Nacala Corridor.

Source: Macauhub