Brazilian mining company Vale has completed the sale of assets in coal exploration in Mozambique to India’s Vulcan Minerals, a deal worth US$270 million (€253 million), the company announced on Tuesday.
“Vale concluded on 25 April 2022, the process of responsible transmission of the Moatize operation and the Nacala Logistics Corridor to Vulcan Resources, based on the binding agreement for the sale of assets,” Vale Mozambique said in a statement to the media.
The mines are located in the province of Tete, central Mozambique. According to Vale, the transaction complied with the conditions set out by law, including the “approvals of the governments of Mozambique and Malawi.
According to the mining company’s statement, the two companies will continue to work together on “implementing systems, processes and procedures to ensure continuity of operations.
Vale worked in Mozambique for 15 years, operating the Moatize mine and 912 kilometres of railway in the Nacala Logistics Corridor to transport coal.
In early 2021 the company announced its intention to “divest its coal assets” and focus on “low-carbon mining”.
Vulcan is a private Indian company that is part of the Jindal Group, with a market value of US$18 billion (€16.8 billion), and which is present in Mozambique, operating the Chirodzi mine also located in the Tete region.