- Vale (NYSE:VALE) says it signed a definitive agreement to buy Mitsui's (OTCPK: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.