Brazilian mining company Vale on Wednesday received authorization from the Mozambican government to sell its coal mines and other operations in the country to Vulcan Minerals of India. The transaction is budgeted at $270 million.

The Minister of Mineral Resources and Energy, Carlos Zacarias, signed the dispatch where he authorizes "the indirect transfer of the totality of the participation held by Vale for Vulcan in the Moatize mine", in the central province of Tete.

The agreement includes the 1,000-kilometer railway line used to export coal through the port of Nacala in northern Mozambique.

According to the order, Vale now has ten days to pay the capital gains tax (the amount of which was not detailed) to the Mozambican state for the order to become "effective."

Vale has been in Mozambique for 15 years and announced in early 2021 its "goal to stop owning coal assets" and to focus on "low-carbon mining."

Vulcan is a private Indian company that is part of the Jindal Group, with a market value of 18 billion dollars and is already present in Mozambique, exploiting the Chirodzi mine, also in Tete.