(Adds transaction details)
Dec 9 (Reuters) - Brazil’s Vale SA said on Tuesday it sold a stake in its Mozambique coal mine to Japanese trader Mitsui & Co Ltd for $763 million, as it looks to shore up its balance sheet during a period of lower commodity prices.
Reuters reported the deal last week, citing sources. Mitsui also confirmed the report on Tuesday.
Shares in Vale were down 2 percent in morning trade in Sao Paulo. Mitsui shares closed down 1 percent.
Under the terms of the transaction, Mitsui will buy 15 percent of Vale’s 95 percent stake in the Moatize coal mine for around $450 million, with the exact figure dependent on production targets for the project.
Vale said the proceeds will be used to fund the expansion of the mine. Mitsui will also be responsible for its share of future mine investments.
Vale also agreed to sell Mitsui half of its 70 percent stake in the Nacala corridor, a port and rail connection to the mine, for an initial $313 million.
The Brazilian company will hold a call with investors to discuss the deal at 1400 GMT. Vale said the transaction is expected to close in 2015. (Reporting by Stephen Eisenhammer; Additional reporting by Tokyo Newsroom; Editing by Jeffrey Benkoe)