Brazilian mega-mining company, Vale (NYSE: VALE) is set to acquire a 45% stake in Alianca Energia from Cemig GT, a subsidiary of energy firm Cemig, for a sum of US$540.9M.
This strategic move would grant Vale full ownership of Alianca Energia, an energy company with a portfolio that includes seven hydroelectric plants and three wind units.
“The acquisition of the stake in Alianca Energia is an important step towards creating an energy platform, potentially including other energy assets from Vale’s portfolio”, the miner said, adding it will seek for potential partners for the platform once the Alianca deal is closed. In a separate statement, Cemig clarified that this transaction aligns with its strategy of divesting minority stakes in its holdings.
This move comes as Vale is working fervently to accelerate efforts to establish its energy transition business, with other announcements including signing strategic partnerships with Manara Minerals to fast-track Vale Base Metals’ expected US$25-30B capital programme over the next decade and help drive a significant potential increase in VBM’s production from about 350Kt/year to 900Kt/year in copper and from roughly 175Kt/year to more than 300Kt/year in nickel.
“We see these strategic investments as a major milestone in our path to accelerate accretive growth in our Energy Transition Metals business platform, creating significant long-term value to all of our stakeholders,” said Eduardo Bartolomeo, Vale’s CEO. “With our high-quality portfolio, we are uniquely positioned to meet the growing demand for green metals essential for the global energy transition, while remaining committed to strong social and environmental practices and sustainable mining.”
