The Brazilian iron ore producer Vale has agreed to pay $1.5B for a 9% stake in the Belo Monte hydropower project in the Amazon basin.
Vale is purchasing the stake from Bertin Group, a Brazilian agricultural concern. The move is seen as a sign that the Brazilian government – which owns a controlling stake in Vale – wants to drive the hydropower project forward in spite of the numerous lawsuits and demonstrations against the project.
The 11.2GW hydropower plant is a key part of the Brazilian government’s development strategy. Vale, which has also invested in other dam projects in Brazil, says that it will benefit from investing in the project as it is a major electricity user.
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