- Mitsui (OTCPK:MITSY) agrees to pay $763M for stakes in a Mozambique coal project owned by Vale (NYSE:VALE), signaling confidence from Japan’s second-largest trading house in a recovery in coking coal prices.
- Mitsui will pay $450M for a 15% stake in the Moatize mine, one of the world's biggest deposits of coal used for steelmaking, and $313M for half of Vale’s 70% stake in the associated Nacala Logistic Corridor rail and port infrastructure.
- "The partial sale of the troubled Moatize mine and logistics project appears to be at a very attractive price for Vale. The proposed sale would likely make the company net free cash flow break-even for the year," BMO Capital says.