Brazilian power company MPX and sister mining firm MMX have closed a deal for a 15 year power supply agreement.

In a joint statement, the companies said the agreement, valued at around BRR 3.3 billion will come into effect in May 2014.

MPX's Parnaíba thermo complex in Brazil's northeastern state of Maranhão will supply power to MMX's Serra Azul mining project in southeastern Minas Gerais state.

MPX also said that it has reached long-term agreements with other companies to supply a total of 30MW from the Parnaíba complex. These sales are worth 158mn reais.

MPX has already sold an average 1.13GW to be produced at the Parnaíba complex, whose total installed capacity will reach 1.5GW.

MPX Parnaíba is expected to start commercial operations by the end of the year.

Both MPX and MMX are part of the EBX holding group, owned by Brazilian tycoon Mr Eike Batista.

(Sourced from bnamericas.com)