Investors interested in buying the Brazilian company Vale’s coal concession in Tete province will present “firm proposals” by December, Mozambique’s Minister of Mineral Resources and Energy announced this Tuesday.
“We expect that, next month [September], the various interested investors will be able to carry out their ‘due diligence’ work, visiting the Vale project in Mozambique, and, by the end of December, will be able to present firm proposals,” Max Tonela told journalists.
Minister Tonela said that the government would then assess the companies’ potential and rule in compliance with Mozambican legislation on this type of transaction, with the Brazilian company’s disinvestment process in Mozambique to be completed by 2022.
“Vale’s divestment process is proceeding according to the established schedule,” Minister Tonela said.
Vale de Moçambique’s exit operation involved its acquisition of a 15% stake in the Moatize coal mine held by Japan’s Mitsui, giving the Brazilian mining company 100% ownership of the Moatize coal concession.
The transaction aims to facilitate the “divestment” of the Brazilian company in coal exploitation in Tete announced in January, the Mozambican minister indicated in a statement in June.
“Vale’s restructuring process should safeguard jobs and the rights of the communities in the areas where the company operates, in addition to ensuring continued compliance with legal obligations and contracts for goods and services,” he stressed.
Vale has declared its aim of becoming carbon neutral by 2050, and reducing some of its main sources of carbon pollution by 2030.
Data from Vale indicate that, despite the divestment plan, the company is committed to increasing its coal production in Tete from the current 10 million tons to 15 million tons next year.