Earlier this month, Brazil granted an environmental license for construction of the Belo Monte hydroelectric dam in its Amazon region. The dam on the Xingu River in the northern state of Para is expected to cost approximately $17bn.
The companies have planned to form a consortium and will analyze a joint bid for the project. They also plan to assess the conditions for participation in the bidding process for the power plant, which will produce around 11,000GW of electricity.
The proposed hydro power station is part of the Brazilian government’s efforts to help the country meet energy demand and curb greenhouse gas emissions. Vale owns interests in eight hydro dams in Brazil and Indonesia with total capacity of 2,509MW.
