Vale, Cemig partner on energy assets

Vale and Cemig have agreed to form a joint venture to manage energy assets, part of Vale’s efforts to cut costs. Vale will own 55% of the entity, to be called Alianca Geracao de Energia. Cemig Geracao e Transmissao will control the remainder. The JV will hold the pair’s stakes in six hydroelectric power plants totaling 1,158 megawatts. Cemig said it would contribute BRL2.03bn ($875m). Vale did not disclose its contribution. In a separate deal, Cemig bought nearly half of the 9% stake that Vale holds in a company called Norte Energia, which will operate the Belo Monte hydroelectric plant, for BRL206m.