Brazilian mining company Vale SA has agreed to sell its 25 percent stake in Chinese coalminer Henan Longyu Energy Resources Ltd to Yongmei Group Co. Ltd, the Chinese parent company of the coalminer, for about US$152 million, Xinhua reports.

The Chinese government-run news agency says Henan Longyu Energy Resources has two mines in the central Chinese province of Henan, which together produce 3.4 million tonnes of metallurgical and thermal coal a year.

The report says the sale announced on Friday is due to be completed in the first quarter of next year.

The sale is part of the Vale programme of reallocating its capital better, Xinhua quotes the Brazilian company as saying.