Brazil state-controlled utility Cia Energetica de Minas Gerais, or Cemig (CIG, CMIG4.BR), said Wednesday that it signed a 2 billion Brazilian-real ($980 million) contract to provide power for the operations of mining company Samarco Mineracao.

Cemig will provide up to 409 megawatts of electric power for the joint venture between Vale SA (VALE, VALE5.BR) and BHP Billiton plc (BHPB.LN), starting in 2014 when the miner is expected to complete a BRL5.4 billion iron-ore pelletization project. The power-supply contract is valid through 2022, Cemig said in a statement.
The power will be supplied to Samarco's plants in the southeastern Brazilian state of Espirito Santo and in the state of Minas Gerais. The government of Minas Gerais controls Cemig, one of Brazil's biggest generators.