Vale to sell stake in Henan Longyu Energy Resources to Yongmei
Brazilian mining company Vale has agreed to sell the 25% stake it holds in Chinese coal miner Henan Longyu Energy Resources to Yongmei Group for CNY1.065 billion (approximately $152 million) as per the latest mining acquisition news.
Henan Longyu Energy Resources has operations in two coal mines located in the Henan province. The two Chinese coal mines produce nearly 3.4Mtpy of metallurgical and thermal coal.
The transaction will increase the ownership of Yongmei Group, which already has a controlling stake in the Chinese coal producer. Yongmei Group is a subsidiary of Henan Energy and Chemical Industry Group.
Vale said that the closing of the transaction, which is subject to fulfilling of preceding conditions, is likely to occur in Q1 2020.
The Brazilian mining company said that the deal aligns with its strategy of discipline in capital allocation and rationalization of its business portfolio.