SAO PAULO, March 31 Brazilian mining giant Vale
(VALE5.SA)(VALE.N) said on Wednesday that it has reached an
agreement to sell minority stakes in its Bayovar phosphate mine
project in Peru for $660 million, through a newly formed
company that will control and operate the project.
Vale will sell 35 percent of the project's total capital to
Mosaic (MOS.N) for $385 million and 25 percent to Mitsui & Co
Ltd (8031.T) for $275 million, the company said in a securities
filing. Vale will maintain control of the project with 51
percent of the voting shares and 40 percent of the total
The transaction is expected to close within the next three
months, Mosaic said in a press release.
The terms also include a commercial offtake supply
agreement that would give Mosaic the right to purchase 35
percent of the phosphate rock produced from the Bayovar mine,
according to the release.
Phosphate rock production at Bayovar and deliveries to
Mosaic are expected to begin in the second half of 2010, Mosaic
(Reporting by Luciana Lopez; Editing by Gary Hill)