Brazilian miner Vale announced an agreement to form a joint venture with U.S.-based investment firm Global Infrastructure Partners (GIP) through its Brazilian renewable energy business, Alianca Energia. As part of this transaction, Vale is set to receive $1 billion in cash proceeds.
This deal represents a strategic divestiture for Vale, allowing the company to streamline its portfolio and focus on core mining operations. The cash inflow is expected to bolster Vale's financial position.
The closing of the Aliança Energia deal, anticipated in Q3 2025, is projected to contribute positively towards Vale's expanded net debt target. This move aligns with the company's disciplined capital allocation approach, aiming to move towards a $15 billion net debt midpoint.
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