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10 Pages

Vale divests stake in Mozambique coal assets to reduce risk

Vale divests stake in Mozambique coal assets to reduce risk

Report summary

Mitsui has agreed to spend US$951 million in Mozambique. This includes US$450 million for the purchase of a 14.25% stake in the Moatize coal mine from Vale, and an agreement to invest US$188 million in the mine to fund its share of remaining capex. In addition, Mitsui will earn a 35% interest in the Nacala Logistics Corridor (NLC) rail and port infrastructure, or half of Vale’s stake, by investing US$313 million to fund its share of remaining infrastructure capex.

What's included?

This report includes 2 file(s)

  • Vale divests stake in Mozambique coal assets to reduce risk PDF - 388.46 KB 10 Pages, 6 Tables, 7 Figures
  • Vale divests in Moatize to reduce its risk.xls XLS - 339.50 KB


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  • Executive summary
    • Deal Summary
      • Moatize Mine
      • Nacala Logistics Corridor (NLC)
    • Sensitivity to yield and price
    • Location Map
    • Coal assets
    • Infrastructure assets
      • Port
      • Rail
    • Costs
    • Deal Analysis
    • Upside and risks
    • Strategic rationale

In this report there are 13 tables or charts, including:

  • Executive summary
    • Key facts
    • Deal valuation analysis and sensitivities
    • Vale divests stake in Mozambique coal assets to reduce risk: Image 2
    • Vale's Moatize mine in Mozambique
    • Key assets
    • Vale divests stake in Mozambique coal assets to reduce risk: Table 3
    • Production (100% basis)
    • Seaborne metallurgical cash cost curve (2014)
    • Seaborne thermal cash cost curve (2014)
    • Summary valuation
    • Vale divests stake in Mozambique coal assets to reduce risk: Table 5
    • Nacala port capacity and potential throughput
    • Economic assumptions
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