The Brazilian mining giant Vale on 25 April concluded the sale of its Mozambican coal production assets (the Moatize coal mine and the Nacala Logistical Corridor) to Vulcan Resources.
Vulcan is part of the Indian group, Jindal, which also runs coal mines in Tete province.
A press release issued by Vale states that under the deal the two companies will maintain a strong collaboration to implement systems and procedures intended to ensure the continuity of operations.
According to Vale, in 2021 it decided to disinvest from coal and focus on its foremost ambition to become a low carbon mining leader.
Over the last 15 years, Vale worked in partnership with the governments of Mozambique and Malawi to develop the coal mine in Moatize and the 912-kilometre railway of the Nacala Logistical Corridor. This railway runs from Moatize, through southern Malawi, to a dedicated coal operations port at Nacala-a-Velha in the northern province of Nampula. Vale calculates that this required an investment of US$13.1 billion.
It also states that it became one of the largest taxpayers to the Mozambican State, putting its total contribution at one billion dollars. Vale says it created about 50,000 direct and indirect jobs and built up over 5,000 local suppliers.
It notes that the company disbursed over US$82 million in social and environmental initiatives.
The statement from Vale does not mention the many disputes over resettlement. The mine displaced thousands of Moatize residents from their homes and there were bitter complaints that the alternative housing provided by Vale was sub-standard.