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Renewable Energy Mining

The Flexfuel Mining Movement: Big News from the World's Second Biggest Mining Company

By Sam Hopkins
Thursday, May 7th, 2009

Are you ready to take profits from the Brazilian mining industry's entry into renewable energy?

I've been here in Rio de Janeiro and its outside areas for weeks, checking out the financing outlook for Brazil's massive renewable energy rollout.

The wide-ranging plan includes ProAlcool, the country's sugarcane ethanol program that dates back to 1975, and now ProInfa, which will ramp up alternative energy sources of electricity throughout Brazil.

At the Renewable Energy Finance Forum here in Rio last week, I was surprised to hear not only from clean energy cheerleaders and international energy majors like Europe's GDF Suez and Enel, but also from Vale, the Brazilian-based steel giant.

Vale (NYSE:RIO), which operates on five continents, is Brazil's largest energy consumer.

And as energy prices are in constant flux, it's hard for a company with such a hearty appetite to keep costs stabilized.

That's why James Pessoa, a longtime Vale executive, has spearheaded the creation of Vale Energy Solutions.

Vale Energy Solutions: Flexfuel mining

Mr. Pessoa told me that Vale Energy Solutions was co-founded with the Brazilian national bank for development, BNDES. Though the company keeps a low profile, energy is a high priority for keeping marginal production costs low and stock prices healthy.

We're talking about flexfuel mining here at the second-largest mining company in the world. . . Big stuff!

From trucks running ore with a mix of gasoline and sugar-based biofuel, all the way to biomass-powered electricity at mining sites, Vale's moves into clean energy could spread like wildfire throughout the Brazilian mining industry.

And the reason BNDES is putting public funds into Vale's clean energy conversion is simple. . .

Household energy is just one part of the clean energy puzzle.

The government knows skyrocketing household power consumption isn't the only challenge Brazil must meet with the ProInfa electricity program (even though that sector is expected to quadruple across Latin America by 2030).

Industrial consumption habits must change, too.

Cutting Costs and Increasing Profits with Flexfuel Mining

Now, I'm heading back to the States. Too bad for me because I can tell you Brazil is an amazing place to be!

But it's good for you as an energy investor, because Luke Burgess and Greg McCoach have already seized on what I've shared with them on the Brazilian mining industry... and its move into renewables.

Frankly, it could transform the international mining investment landscape for good.

Luke has prepared a special report on Brazil's natural resource endowment and the geological bounty called the "Guiana Shield."

That's where the action will be when it comes to ProInfa's implementation in Brazilian mining, and that's where you can find the hottest stocks to benefit from all the change afoot.

To learn more, check out Secret Stock Files today and don't miss a beat of Brazil's hard-charging infrastructure transformation!

Regards,

sig
Sam Hopkins

International Editor

Gold World

P.S. Of course, miners aren't the only companies hoping to pad their balance sheets with alternative energy generation plans. There are boatloads of global stocks that create the very fuels and infrastructure products companies like Vale will need to move forward. With Green Chip International, my colleagues Jeff Siegel and Nick Hodge have joined with me to create a custom portfolio of the top renewable energy players from around the world. You can learn more about GCI right here: http://www.angelnexus.com/o/web/12372 






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