Brazilian mining company, Vale, has announced a partnership with US-based Global Infrastructure Partners (GIP) to form a joint venture in Aliança Energia. Earlier, Vale had expressed its intention to sell a portion of its stake in Aliança Energia.

According to RBC, this development was anticipated and doesn’t alter their valuation of Vale, as they had not assigned any value to Vale’s stake in Aliança.

They did, however, highlight that the balance sheet value of this subsidiary stood at $1 billion at the end of 2024. This figure represents a 70% stake, which is equivalent to $700 million.

RBC views this move as a strategic decision that will enable Vale to decrease its net debt by 7%, while ensuring competitive energy costs.