Brazilian mining corporation Vale will be selling its USD1.1 billion stake in Norwegian aluminum and renewable energy company Norsk Hydro. According to The Economic Times, the company will be exiting the asset which it has deemed non-core.

Vale owns 21.6% of Norsk Hdyro. Its 246.4 million outstanding shares are worth NOK6.64 billion (USD1.08 billion).

In a statement released to Reuters, the mining company said that it will be offering 224 million shares in an accelerated bookbuild and may also sell another 22.4 million through an overallotment option. This would substantially reduce Vale's stake to 9.74%.

Vale took the stake two years ago as partial payment for the Norwegian company's USD4.9 billion acquisition of alumina and bauxite assets.

Vale is currently the world's second largest mining corporation and top iron ore miner. After the deal, it would remain Hydro's second  largest shareholder next to the Norwegian government, which owns 34% of the aluminum producer.