SAO PAULO (Reuters) - Brazilian miner Vale said on Monday it agreed to form a joint venture with U.S.-based investment firm Global Infrastructure Partners (GIP) through its Brazilian renewable energy business Alianca Energia.
In a securities filing, Vale said it would sell 70% of Alianca Energia to GIP, receiving about $1 billion in cash once the transaction is completed.
Reuters had reported in February, citing sources, that Vale was in advanced talks to sell a majority stake in Alianca Energia and a solar plant to GIP.
In the filing, Vale said that, after the deal, Alianca Energia will also consolidate Sol do Cerrado solar plant and 100% of hydro power plant Risoleta Neves, both located in the southeastern Minas Gerais state.
Vale became sole owner of Alianca last year, when it paid 2.7 billion reais for the 45% stake held by power firm Cemig, with whom it launched the venture in 2013.
(Reporting by Andre Romani; Editing by Sarah Morland and Stephen Coates)