Vale expects to receive binding offers for its coal business in early November, an executive said, as the company aims to completely exit the sector and has decided to divest of its Moatize asset even before it reaches goals projected in the firm’s business plan.
“We have already received some indicative proposals to sell the business. Now we expect to receive binding offers in early November,” Vale’s Finance VP Luciano Siani said during a conference call.
Vale signed a deal to acquire Mitsui& Co’s stake in the Moatize metallurgical and thermal coal mine and port project in Mozambique in April.
Moatize is Vale’s largest venture in the coal sector, and has been operational since 2011. The complex has a capacity of 22 million tonnes of coal a year, including metallurgical and thermal types.
In 2017, Mitsui paid $690 million for its interest in the mine.