Brazilian miner Vale has announced that it has signed an agreement with the US-based investment firm Global Infrastructure Partners (GIP) to establish a joint venture in Brazil-based electricity supplier Aliança Geração de Energia, in which Vale holds 100 percent of capital. Vale will receive approximately US$1 billion in cash and hold a 30 percent stake in the joint venture, while GIP will hold the remaining 70 percent. The transaction will be completed following regulatory approval.
With the transaction, Vale guarantees competitive energy costs, with prices defined in US dollars without inflation adjustment. Upon the completion of the transaction, Aliança Energia will consolidate the energy assets held by the Sol do Cerrado solar plant and the entirety of the Candonga Consortium, both in Minas Gerais, in addition to six other hydropower plants in the same state and three wind farms in Rio Grande do Norte and Ceará. Combined, these assets reach 2,189 MW in installed capacity.
In April last year, Vale signed an agreement to acquire a 45 percent stake in Aliança Geração de Energia from its partner Cemig Geração e Transmissão to hold 100 percent of Aliança Energia’s capital, as SteelOrbis previously reported.
