UPDATE 1-Brazil's Vale agrees to new terms with Mitsui for coal mine stake

RIO DE JANEIRO, Sept 29 (Reuters) - Vale SA said on Thursday it has agreed to new terms for the sale of stakes in a coal mine and railway project in Mozambique to shareholder Mitsui & Co, in a deal that will raise $768 million and could help Vale free up to $2.7 billion in funding commitments for both projects.