Brazil's Vale acquires full control of Aliança Geração de Energia

Brazilian mining giant Vale agreed to acquire full control of power generation company Aliança Geração de Energia and is looking for partners to co-manage its energy platform.  

Vale agreed to pay 2.7bn reais (US$545mn) for the 45% stake that it did not already have in the energy company. The mining firm in 2015 created a joint venture, Aliança Geração de Energia, with Cemig GT – a subsidiary of Minas Gerais energy firm Cemig – and Vale controlling a 55% stake.

"Aliança Energia's generation volume is strategic in maintaining Vale's energy matrix based on renewable sources in Brazil. Aliança Energia's power generation asset portfolio consists of seven hydroelectric plants in the state of Minas Gerais and three wind farms in the states of Rio Grande do Norte and Ceará. Together, these assets reach 1,438MW in installed capacity and an average physical guarantee of 755MW," Vale said in a statement.

Cemig intended to divest the asset and Vale says it is now looking for new partners to help it manage its energy assets.

"The acquisition of the stake in Aliança Energia is an important step towards creating an energy platform, potentially including other energy assets from Vale's portfolio. Upon conclusion of this transaction, Vale will search for potential partners for this platform, keeping its commitment to decarbonize its operations using renewable sources at competitive costs," said the firm.