SAO PAULO, March 31 (Reuters) - Brazilian miner Vale

said on Monday it agreed to form a joint venture with

U.S.-based investment firm Global Infrastructure Partners (GIP)

through its Brazilian renewable energy business Alianca Energia.

In a securities filing, Vale said it would sell 70% of

Alianca Energia to GIP, receiving about $1 billion in cash once

the transaction is completed.

Reuters had reported in February, citing sources, that Vale

was in advanced talks to sell a majority stake in Alianca

Energia and a solar plant to GIP.

In the filing, Vale said that, after the deal, Alianca

Energia will also consolidate Sol do Cerrado solar plant and

100% of hydro power plant Risoleta Neves, both located in the

southeastern Minas Gerais state.

Vale became sole owner of Alianca last year, when it

paid 2.7 billion reais for the 45% stake held by power firm

Cemig, with whom it launched the venture in 2013.