Brazil's Vale, Cemig create venture for energy assets

|About: Vale S.A. (VALE)|By:, SA News Editor

Vale (VALE -2.4%) is forming a joint venture with power company Cemig (CIG) to manage some energy assets and to sell part of its stake in the controversial Belo Monte hydroelectric dam in the Amazon forest, part of its efforts to cut costs and focus on its main iron ore mining business.

The JV will comprise Vale and Cemig stakes in six hydroelectric power plants, with a total installed capacity of 1,158 MW.

Vale doesn't disclose the potential value of the assets to be included in the new company, but Cemig says its 45% stake is valued at 2.03B Brazilian reais ($874M).