Miner Vale To Receive $1B In Alianca Energia JV Deal

Vale S.A. (NYSE:VALE) is among the 11 Best Copper Stocks to Buy Now. Brazilian mining behemoth Vale S.A. (NYSE:VALE) has consented to sell Global Infrastructure Partners (GIP), a U.S.-based company, a 70% share in its renewable energy division, Alianca Energia. The transaction, which was reported in a securities filing on March 31, will result in around $1 billion in cash for Vale once completed.

Miner Vale To Receive $1B In Alianca Energia JV Deal.

Aerial view of a giant iron ore mine, showcasing the mineral deposits of the company’s Ferrous Minerals segment.

This agreement comes after news surfaced in February that Vale S.A. (NYSE:VALE) was in advanced talks with GIP to sell a solar plant and the majority of Alianca. In 2023, Vale S.A. (NYSE:VALE) bought the remaining 45% of Alianca from Cemig for 2.7 billion reais, making it the company’s sole proprietor.

Alianca, which was founded as a joint venture in 2013, will now consolidate the Sol do Cerrado solar plant and the whole Risoleta Neves hydropower complex, both in Minas Gerais. The deal is in line with Vale S.A. (NYSE:VALE)’s continuous plan to maximize its asset base and further its energy transition objectives.

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