Sources say Vale is in advanced discussions to sell Brazil renewable assets GIP.

Two people familiar with this matter have confirmed that Vale, the Brazilian mining giant, is in advanced discussions to sell a major stake in a renewable power unit and a Solar Plant to Global Infrastructure Partners.

Sources said that Casa dos Ventos (CTG) Brasil and China Three Gorges Brasil had both expressed interest in a deal to purchase 70% of Alianca Energia, a subsidiary of Vale, and the solar power plant. However, they have now dropped out.

Sources confirm that Vale chose to continue exclusive negotiations with GIP. However, a contract final has not yet been signed.

Vale stated in a press release that it was looking for potential partners to help Alianca. However, no decision had been made and no agreement binding has been signed.

GIP has declined to comment.

GIP, according to one source, could pay between 5-6 billion Reais ($870m-$1.04b) for 70% Alianca. Alianca operates a portfolio that includes hydroelectric power stations and wind farms with a total installed capacity of 1,300 megawatts.

The Brazilian news website Faria Lima Journal reported for the first time on Thursday that negotiations between Vale GIP were progressing.

Vale bought the remaining 45% of Alianca from power company Cemig for 2.7 billion reais (470 million dollars) last year.

(source: Reuters)