Miner Vale to receive $1 billion in Alianca Energia JV deal

The Brazilian miner Vale announced on Monday that it had agreed to create a joint venture through Alianca Energia, its Brazilian renewable energy company.

Vale announced in a filing that it will sell 70% of Alianca Energia, and receive approximately $1 billion cash, once the transaction has been completed.

In February, citing reliable sources, it was reported that Vale had advanced discussions to sell a major stake in Alianca Energia as well as a solar power plant to GIP.

Vale stated in its filing that Alianca Energia would consolidate the Sol do Cerrado solar power plant, and 100% of the hydropower plant Risoleta Neves located both in Minas Gerais' southeast.

Vale acquired Alianca in 2013 when it bought the 45% of the company owned by Cemig. (Reporting and editing by Sarah Morland, Stephen Coates and Andre Romani)

(source: Reuters)