Vale Oks New Deal Terms With Mitsui; Board Not Discussed Fertilizer Unit Sale

(RTTNews) - Brazilian metals and mining company Vale S.A. (VALE) Thursday said it approved new terms for the sale of stake in the Moatize coal mine and the Nacala Logistics Corridor or NLC to Mitsui & Co., Ltd. Vale expects to receive $768 million after the completion of the equity transaction with Mitsui, and up to $2.7 billion upon closing the Project Financing.

Vale further announced that at Thursday's Board meeting, the Directors did not deliberate on the sale of its fertilizer business. Recently, it was reported that the Board would approve a sale of the unit in the meeting.

Under the new terms for the stake sale of Moatize coal mine, Mitsui agreed to contribute up to $450 million. This includes an aggregate of $255 million for a 15% of Vale's stake in the Moatize coal mine and an additional contribution of up to $195 million based on meeting certain conditions, including mine performance. Vale currently holds 95% of the equity interest of the Moatize coal mine.

Mitsui will also contribute $348 million for a 50% stake in the equity and quasi-equity instruments of the NLC and extend a long-term facility of $165 million to the NLC.

Further, Vale said it will pay the semi-annual remuneration on its shareholders debentures on September 30.