Based on the conditions agreed with a diversified mineral resource company, Vale. S.A. as of September 2016, Mitsui & Co., Ltd. implemented the acquisition of 15% equity interest in Vale’s wholly-owned investment subsidiary that holds a 95% equity interest in the Moatize coal mine project in Mozambique, and a 50% equity interest in Vale’s investment subsidiaries that have been promoting the Nacala Corridor rail & port infrastructure project.
In September 2016, Mitsui announced a total investment of US$768 million in these projects, including a US$255 million investment in the coal mine, and US$513 million investment in the infrastructure project. This time, a total of US$ 733 million, which includes the total investment in the coal mine and the US$478 million investment into the infrastructure, is to be paid, with the remainder scheduled to be paid in the FY ending March 2018. Mitsui together with Vale also plans to raise up to US$2.7 billion in funds to the Nacala Corridor through project finance from domestic and foreign financial institutions.
The project already commenced coal export, with the mine possessing large-scale coal reserves with a high level of competitiveness. Through this project, Mitsui is contributing to the stable supply of coal by diversifying supply sources, and helping the growth and development of Mozambique and Malawi, and the African region.