OREANDA-NEWS. Vale has signed agreements to conclude a purchase option exercised in June 2010, through which it will buy an additional 24.5% stake in the Belvedere coal project (Belvedere) from Aquila Resources Limited (Aquila). The purchase price of AUSD 150 million (equivalent to USD 156 million using an AUD/USD exchange rate of 1.04) is equivalent to the market value recently determined by an independent appraiser hired by Vale and Aquila.

The acquisition is subject to approval by the government of Queensland, Australia. As a result of this deal, we will increase our participation in Belvedere to 100%. Additionally, Vale agreed to pay AUSD 20 million (equivalent to USD 21 million) to end litigation and disputes with Aquila. In all, USD 338 million will be paid for 100% of the project.

Belvedere is a future growth option and consists of a project with an underground coal mine located in the southern Bowen Basin region, near the city of Moura, in the state of Queensland, Australia. The project is still in an early stage of development and, therefore, subject to approval by Vale’s Board of Directors. According to preliminary estimates, Belvedere has the potential to reach a production capacity of 7.0 million metric tons per year, with the main output being coking coal.