MOZAMBIQUE – Vale. SA, world’s largest iron ore producer, has hired investment banks Barclays and Standard Chartered to sell its Mozambique metallurgical and thermal coal mine and port project, have told Club of Mozambique, as the Brazilian miner works to become carbon neutral by 2050.
Vale, the world’s second-biggest iron ore miner, this week agreed to buy out its minority partner in the loss-making Moatize coal mine and Nacala Corridor rail and port projects in Mozambique ahead of a planned sale.
It is unclear what the assets might fetch, the sources told Club of Mozambique, declining to be identified as the discussions are confidential.
“The miner’s coal division posted a loss of US$213 million in adjusted earnings before interest, tax, depreciation, and amortisation in its most recent quarterly result”
In 2019, Vale slashed its valuation of the assets due to technical and operational issues.
The miner’s coal division posted a loss of US$213 million in adjusted earnings before interest, tax, depreciation, and amortisation in its most recent quarterly result.
The operations are expected to reach 15 million tonnes a year in the second half and 18 million tonnes a year in 2022, according to Vale.
Vale and its advisers are expected to target companies in India and China, including state-backed metals trader China Minmetals Corp as well as India’s JSW Steel Ltd and state-owned Steel Authority of India Ltd
A diplomatic row has resulted in an effective ban on China’s imports of Australian coal, meaning the country is eager to find other sources of import, one of the sources said.