Vale has informed that the concessionaires of the Nacala Logistics Corridor (NLC), located in Mozambique and Malawi, present today an irrevocable notice to the financing banks of the Nacala Corridor Project Finance confirming their intention to prepay the outstanding balance of approximately US$ 2.5 billion, which will be settled on 22 June 2021 with funds provided by the company.
With the settlement of the project finance, all conditions precedent for the completion of the transaction for the acquisition of Mitsui's stakes in the Moatize coal mine and the NLC are fulfilled, which is expected to occur following the prepayment of the project finance. After the closing, Vale will consolidate the Moatize mine and the NLC in its financial statements. Accordingly, EBITDA will no longer be burdened with costs related to debt service, investment in maintenance of operations (which will be executed directly by Vale as sustaining capital) and others, financed by NLC's tariff, and that already discounting the interest received by Vale, impacted the 2020's EBITDA by approximately US$300 million.
With the simplification of the governance and management of the assets, Vale continues the process of a responsible divestiture of its participation in the coal business, based on the preservation of the operational continuity of Moatize mine and NLC.
Read the article online at: https://www.worldcoal.com/coal/10062021/vale-to-pay-us25-billion-to-acquire-coal-assets/