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Mitsubishi & Co., Ltd. ("Mitsubishi", Head Office: Tokyo, President & CEO: Tatsuo Yasunaga), under the new terms, has agreed with Vale S.A. ("Vale") to own a 15% equity interest in Vale's wholly-owned investment subsidiary that holds a 95% equity interest in the Moatize project, and own a 50% equity interest in Vale's investment subsidiaries that have been promoting the Nacala project.
The new deal will compose of Mitsubishi's payment amount for investment and loan at an aggregate of USD 255 million for the mine. There will be a payment mechanism based on the satisfaction of certain conditions including the performance of the mine, which would result to an additional contribution of up to USD195 million.
Mitsubishi will make an equity payment for the infrastructure at USD 348 million and will also extend a loan facility of USD 165 million. At completion of the equity transaction, Mitsubishi is scheduled to contribute USD 768 million.
Together with Vale, Mitsubishi plans to secure fund through Project Finance from public financial institutions overseas and Japanese banks, up to an amount of USD 2.7 billion. The completion of the equity transaction continues to relate to the successful completion of Project Finance.
The agreement demonstrates Mitsubishi's strong commitment to contribute to the development and growth of not only in Mozambique and Malawi but throughout Africa. Through this transaction, Vale and Mitsubishi will reinforce strategic alliance by establishing a supply structure that can respond to the growing global demand of minerals including coal and iron ore.
Moatize mine
| Ownership portion | The holding company of Vale and Mitsubishi: 95% (Vale's subsidiary: 85%, Mitsubishi's subsidiary: 15%) Empresa Moçambicana de Exploração Mineira (EMEM): 5% |
|---|---|
| Location | Tete state, Republic of Mozambique |
| Capacity | 22 million tons/annual |
Nacala rail & port infrastructure business
| Purpose of the business | The transport and shipment of coal, general commodities and passenger |
|---|---|
| Main assets Rail Coal terminal General cargo terminal |
Total length: 912km Transport capacity: 22million tons/annual Loading capacity: 18million tons/annual Loading capacity: 4million tons/annual |
| Ownership portion | The holding company of Vale and Mitsubishi: approx. 70% (Vale's subsidiary: 50%, Mitsubishi's subsidiary: 50%) Mozambican company and Portos e Caminhos de Ferro de Moçambique (CFM): approx. 30% |
Investment structure
Map
Notice:
This announcement contains forward-looking statements. These forward-looking statements are based on Mitsubishi's current assumptions, expectations and beliefs in light of the information currently possessed by it and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsubishi's actual results, financial position or cash flows to be materially different from any future results, financial position or cash flows expressed or implied by these forward-looking statements. These risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsubishi's latest Annual Securities Report and Semi-annual Securities Report, and Mitsubishi undertakes no obligation to publicly update or revise any forward-looking statements.
This announcement is published in order to publicly announce specific facts stated above, and does not constitute a solicitation of investments or any similar act inside or outside of Japan, regarding the shares, bonds or other securities issued by us.
