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SAO PAULO, March 31 (Reuters) - 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 capital.
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 added. (Reporting by Luciana Lopez; Editing by Gary Hill)