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Vale divests stake in Mozambique coal assets to reduce risk

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12 December 2014

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.

Table of contents

    • 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

Tables and charts

This report includes 13 images and tables including:

  • 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

What's included

This report contains:

  • Document

    Vale divests stake in Mozambique coal assets to reduce risk

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