logo
  

Brazil's Vale, Cemig Form JV For Energy Assets: Reports

According to media reports, Brazilian mining giant Vale S.A. (VALE) has agreed to establish a joint venture with an unit of power company Cemig (CIG, CMIG4.BR) to manage some energy assets and to dispose a portion of its stake in the controversial Belo Monte hydroelectric dam in the Amazon forest, as part of the mining company's efforts to slash costs and focus on its main business.

Reports added that Vale would form a company called Aliança Geração de Energia S/A jointly with Cemig Geracao e Transmissao SA, a subsidiary of Cemig, with Vale assuming a 55% shareholding in the new company and Cemig controlling the remainder. The venture is expected to include Vale and Cemig stakes in six hydroelectric power plants, with a total installed capacity of 1,158 megawatts.

Vale did not announce the potential value of the assets to be included in the new firm, but Cemig reportedly announced that its 45% stake is worth 2.03 billion Brazilian reais, or $874 million.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Hormel Foods Corp. (HRL) said, in the fourth quarter, the company delivered earnings per share comparable with record results last year, which included an additional week of sales. Pretax earnings were $357 million, up 1% from a year ago. Organic net sales were up 2%, excluding the impact of an additional... Over the Thanksgiving holiday weekend, from Thanksgiving Day to Cyber Monday, around 196.7 million Americans shopped in stores and online, higher than the previous year, according to the National Retail Federation or NRF. Black Friday continued to be the most favored day for in-store as well as online shopping during the five-day holiday period. Lenoir, North Carolina -based Exela Pharma Sciences, LLC has expanded its recall of Sodium Bicarbonate Injection due to vial breakage to include more lots, the U.S. Food and Drug Administration said. The product is used for treatment of metabolic acidosis and is packaged in a 50 mL glass vial, 20 vials per carton.
Follow RTT