Vale draws down $3bn in credit as it struggles to divest noncore assets
TORONTO (miningweekly.com) – Iron-ore producer Vale has drawn down $3-billion from its $5-billion revolving credit facility to increase liquidity and bridge potential cash flow needs until the conclusion of its divestment programme, the company advised on Tuesday.
In particular, the company said it was struggling to conclude the sale of its Mozambique-based coal assets, comprising Moatize and the Nacala logistics corridor.
Vale agreed to sell 15% of its local subsidiary, Vale Mozambique (which owns and operates Moatize) to Mitsui, of Japan. Upon the deal closing, Vale would hold 81% of Vale Mozambique, having originally owned 95% (5% was locally held).
Some of the amount raised would also cover the funds used to amortise bonds due this month.
Vale also stated that it was also working on long-term debt transactions to reduce the use of the revolving credit lines while the divestment programme was carried out. These transactions were expected to preserve Vale's average cost of debt, the company said.
The Nacala corridor project, located in northern Mozambique and southern Malawi, was being implemented to provide logistical support for the Moatize coal project, in Mozambique.
The project involved the construction and rehabilitation of the 912 km railway through Mozambique and Malawi, and the construction of a new coal terminal in Nacala-a-Velha port.
The total construction cost was estimated at $4.4-billion, with part of the cost to be funded with project finance from public financial institutions overseas and Japanese banks.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Developed to exceed the latest EN 15964 standards for police breathalysers proving that it will remain accurate and reliable for many years to come.
VISIT SHOWROOM
Rentech provides renewable energy products and services to the local and selected African markets. Supplying inverters, lithium and lead-acid...
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
