09 Jun 2021
Vale (NYSE:VALE) says it will prepay an outstanding ~$2.5B balance related to project financing for the Nacala logistics corridor that serves the Moatize coal mine in Mozambique.
The company says the settlement will allow it to complete its purchase of Mitsui's stake in the Moatize mine and the Nacala corridor, and speed its exit from coal.
With the closing of the deal for Mitsui's stake, Vale says it will consolidate the Moatize mine and NLC in its financial statements.
The company says its EBITDA will no longer be burdened with costs related to debt service, investment in maintenance of operations and other charges that took a ~$300M bite out of EBITDA in 2020.
Vale said in January that it was buying out Mitsui's minority stake in the Mozambique mine and port project, ahead of selling the unprofitable asset.
Source : https://seekingalpha.com/news