MITSY - Vale to buy Mitsui stake in coal mine then plans sale

Vale (VALE) says it signed a definitive agreement to buy Mitsui's (MITSY) stake in the Moatize coal mine and the Nacala logistics corridor in Mozambique, which Vale says is its first step in exiting the coal business.Vale will own 95% of the mine and 100% of the Nacala project, and says it will then initiate a sale to third-party investors, in line with its commitment to carbon neutrality and a focus on the core business.Q1 coal production fell by 44% Y/Y and by 11% Q/Q to 1.09M mt because of weaker seaborne coal demand during the pandemic and maintenance of two processing plants in Moatize.Vale earlier reported Q1 production fell 19.5% Q/Q, which analysts say will give another boost to rallying iron ore prices.

For further details see:

Vale to buy Mitsui stake in coal mine, then plans sale