The sale is being interpreted as a sign that it is retreating from its thermal coal assets and focusing more on its core coking coal and iron ore operations which are used in steel making.

“The sale of the thermal coal operations in Colombia is part of our continuous efforts to optimize the asset portfolio,” the company said in a statement. “Vale's growth and sustainable value creation strategy encompasses a multilane road, in which active portfolio asset management is a very important tool to optimize capital allocation and focus management attention.”

Vale’s thermal coal operations in Colombia consisted of a fully-integrated mine-railway-port system.

It owned 100% of the El Hatillo coal mine and the Cerro Largo coal deposit, both located in the Cesar department and 100% of Sociedad Portuaria Rio Cordoba, a coal port facility in the Atlantic coast of Colombia.

It also had an 8.43% equity participation in the railway Ferrocarriles del Norte de Colombia S.A. that owns the concession and operation of the railway connecting the coal mines to SPRC.

Colombia’s mining regulator has flagged increased coal production this year, focusing on exports to China rather than its traditional US and European markets.

Recent changes in Colombia’s output and export ambitions reflect an expanding presence in the country of coal miners including Glencore, Drummond International and the Cerrejon joint venture (BHP Billiton, Anglo American and Xstrata).

According to Reuters, the Colombian mining regulator announced the country produced 23.3 million tonnes in the first quarter this year, up 14.6% from the same period last year.

The report said the largest local increase (almost 21%) was achieved in the Cesar province where Glencore, Drummond and Vale operate.

The surge in production, almost all of which is exported, coincides with a recent decision to shift coal traffic toward markets in Asia.

Colombian and Chinese officials struck an agreement expected to redirect coal exports to China and consequently away from US and European markets, The Wall Street Journal said.

Talks were reportedly held on developing central Colombia coking coal reserves and establishing rail infrastructure to facilitate shipping to Asia.

The Chinese-funded rail network would streamline a redirected export strategy that currently means all of Colombia’s coal being shipped north through Caribbean ports.

Colombia is the largest coal producer in Latin America and the fourth-largest worldwide.