It has signed a heads of agreement with Japan-based Mitsui & Co, to acquire Mitsui's interests in the Moatize coal mine in Mozambique and 912km Nacala Logistics Corridor for US$1 each.

Vale said after acquiring Mitsui's stakes, it would consolidate NCL entities and simplify the governance and asset management, then "begin the process of divesting its participation in the coal business" by searching for a third party interested in the assets.

It said the Mitsui transaction was in line with Vale's focus on its core businesses and ESG agenda, committed to becoming carbon neutral by 2050 and reducing 33% of its scopes 1 and 2 emissions by 2030.  

Mitsui had acquired a 15% stake in Moatize project and a 50% interest in NCL from Vale in 2017.

It said given Vale's decision to divest its coal business, Mitsui decided to sell its equity stake to Vale in the context of reorganisation and restructuring the asset portfolio.

"Mitsui is currently reviewing the anticipated loss that will result from the transfer," it said.

It had put the investment and loan value of Moatize at $0 and the NCL and port infrastructure project at $500 million at September 30.

Vale said it would continue to support Moatize's ramp-up and its commitment to society and stakeholders.

It said it had been implementing two initiatives at Moatize, a new mining plan expected to result in a better product mix and cost reduction, and new operational strategy for the processing plants which were expected to ramp up to a production rate of 15 million tonnes per year in the second half of 2021 and 18Mtpy in 2022.

The parties expected Mitsui's exit from the assets to be completed this year.

Shares in Vale, which is capitalised about US$90 billion, closed down 1.85% in Brazil yesterday but remain at the upper end of a one-year range.

Mitsui shares touched a one-year high this morning and were up 0.64% in Tokyo midday trade to JPY2,041.50, valuing it about JPY3.44 trillion (US$30 billion).