Vale sold a stake in its Moatize coal mine and the Nacala Logistics Corridor (NLC) to Japan’s Mitsui & Co. Ltd. (Mitsui). Mitsui will contribute up to $450 million: $255 million for a 15% of Vale’s stake in the Moatize coal mine (Vale currently holds a 95% equity) and an additional $195 million based on meeting certain conditions, including mine performance.

Mitsui will also contribute $348 million for a 50% stake in the equity and quasi-equity instruments of the NLC and extend a long-term facility of $165 million to the NLC.

“This is a very important project not only for Vale, but for Brazil and Japan, countries that are represented in Mozambique at this time, when the coal is recovering its significant power in terms of price,” said Murilo Ferreira, Vale CEO.

Spot prices for coking coal have soared recently. Vale expects to receive $768 million after the completion of the equity transaction with Mitsui, and up to $2.7 billion upon closing of the project financing.