- Write by:
-
Wednesday, December 22, 2021 - 13:42:33
-
730 Visit
-
Print
Mining News Pro - Vale is selling its Moatize coal mine and the Nacala logistic corridor, a multi-billion dollar port and rail project in Mozambique, to Vulcan Minerals in a transaction valued at $270 million.
The Brazilian mining giant said it will receive $80 million immediately and the rest at the close of the deal. There will also be a 10-year royalty contract, it added.
“This is another accomplishment on our commitment to reshape our company, focusing on our core businesses,” CEO Eduardo Bartolomeo said in the statement.
Vale’s move is part of a growing shift away from coal among the world’s biggest mining companies. The fossil fuel is being gradually phased out of the global energy mix as investors increasingly demand environmental commitments from corporate leadership.
The Rio de Janeiro-based company has set as goal to be carbon neutral by 2050. To reach that target, it plans a 15% reduction by 2035 in so-called scope 3 emissions, those generated when customers burn or process their raw materials. The sale of Moatize is one step towards meeting that goal, it has said.
The Nacala Logistics Corridor connects the Moatize mine in Mozambique’s north-west Tete province via a 900km rail line to the deep-water port of Nacala in the east, passing through Malawi on the way.
Lossmaking business
The mine, which started production in 2011, has been a source of ongoing problems and losses for Vale.
The company fully impaired Moatize in 2019, after taking a $2.4 billion charge on the operation in 2016.
The Moatize mine is expected to reach an annual production rate of 18 million tonnes in 2022. The complex has a capacity of 22 million tonnes of coal a year, including metallurgical and thermal types.
Short Link:
https://www.miningnews.ir/En/News/617312
Oxford Economics Australia has released data showing mine maintenance spending may be hitting its peak. But what does it ...
London-based Savannah Resources will if necessary ask Portugal’s government to authorize compulsory land acquisitions ...
Newmont Corp. has no plans to expedite a decision on its $2.5 billion Yanacocha Sulfides project, dashing the Peruvian ...
Imports of iron ore by China, the world’s biggest buyer, in 2024 are expected to be around 1.17 to 1.18 billion metric ...
First Quantum Minerals said on Monday it is looking forward to talks with Panama’s new government to find a resolution ...
BHP has put South Africa and its mining sector on the spot. The $140 billion Australian group’s ambitious swoop on rival ...
Coal India Ltd., the world’s largest producer of the commodity, reported a 26% increase in fourth-quarter profit, driven ...
BHP Group can’t cherry pick Anglo American assets without paying a hefty premium, Anglo investors told Reuters, ...
When former boss Mark Cutifani left Anglo American Plc in mid-April 2022, things had rarely looked better for the ...
No comments have been posted yet ...