World number two miner to approve $5bn to bring annual capacity to 360m tonnes.
It will pay two and a half months salary to about 4,000 workers.
China allowed one partially loaded Valemax to dock earlier in April, but carrying 400,000 tonnes of iron ore is still banned.
The country's share in the global iron ore market has dropped 7.5% decrease since 2000, close to mid-1970s levels.
The potential takeover comes only four years after Vale bought the project from Rio Tinto.
Mozambique’s coal industry has faced a number of challenges in recent months.
The mine, scheduled to start operating in 2016, is expected to produce 5 million tonnes of coking coal a year.
Deal it is expected to fetch around $3 billion.
The miner must "abstain from … dismantling installations (and) removing tools, machinery and other work implements" or face heavy fines otherwise.
The country's commodities forecasting agency expects average price to fall to $90 a tonne over the next five years.
Goldman Sachs sees significant earnings declines at world number two miner.
Rio and Xstrata are not the only miners rethinking their coal business in Australia. Vale and BHP are reportedly on the same page.
From relic of the industrial age to the most profitable bulk commodity the mining industry has ever experienced.
The steelmaking commodity hit a 2½-month low Monday as Chinese steelmakers resist restocking frightened by weakening economic data.
It became the latest large miner to write down assets in the face of falling commodity prices.
Vale's local subsidiary signed a deal with Canadian junior miner Corex Gold to explore for gold and copper in Mexico.
Last October, Vale put the scope and schedule for its $1.26 billion Zogota iron-ore project in Simandou South under review.
Foreign and local investors spent a total of $3.8 billion in 2012 and the trend is expected to continue this year, with planned investments already amounting to more than $4 billion.
The world’s third-largest miner is set to post the lowest annual profit in three years.
Even with significant ore bodies coming on stream from 2015 onwards in Brazil (Anglo’s Minas Rio and Vale’s Serra Sul), Australia will be able to keep its crown in this commodity kingdom thanks to Rio, say analysts.
With the executive's resignation, the global steel director's position will no longer exist.
Murilo Ferreira, CEO of Brazil’s mining giant VALE (NYSE: VALE) said he expect less volatility in terms of iron prices for 2013
The country's iron ore imports in 2012 totalled $95.6 billion, 8.4% higher than the previous year.
Vale, Rio Tinto and BHP Billiton reach an almost one-year high.
Brazilian miner Vale SA (NYSE:VALE) said Wednesday its fourth-quarter results would suffer after the company decided to settle a case of alleged tax evasion with Swiss authorities.
Mining giant Vale (NYSE:VALE) has started paying the Brazilian government $674 million ($1.4 billion real) in a dispute over mining royalties.
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