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Vale and Caterpillar sign new five year global framework deal

Posted on 11 Feb 2025

Vale and Caterpillar have signed a new, five-year global framework agreement, to strengthen the collaboration between the two companies. Among the objectives are increased focus on productivity and innovation, including carbon reduction initiatives.

The companies also reaffirmed their commitment made in April 2024 to cooperate towards development of a dual-fuel haul truck, powered by diesel and ethanol. Vale also intends to test a battery electric haul truck and the Cat Dynamic Energy Transfer System (DET) under development by Caterpillar.

“The framework agreement represents an evolution in our relationship with Caterpillar, amplifying our focus on maximising the performance of Vale’s assets and allowing us to advance on our decarbonisation path in an economically responsible way,” says Marco Braga, Vale’s Procurement Director.

“The agreement with Vale reflects our commitment to developing solutions that support our customers’ operational and sustainability goals,” says Denise Johnson, Group President of Caterpillar’s Resource Industries segment.

“This strategic collaboration reinforces our commitment to deliver solutions that improve Vale’s operations, with a focus on safety, productivity and operational excellence,” says Marcelo Ribeiro, Executive Vice-President of Sotreq, a Cat dealer in Brazil.

On average, diesel fuel use in Vale’s operations is responsible for 15% of the company’s direct CO₂eq emissions. The adoption of more sustainable technologies is part of a strategic plan to mitigate environmental impacts while maintaining competitiveness.

The dual-fuel haul truck to be powered by ethanol and diesel that is under development by Caterpillar would initially equip trucks capable of carrying 240 tons of ore. In the future, the technology may be extended to trucks with a capacity of 320 tons. In total, there are more than 150 of both models in operation at Vale. Initial testing is to be completed at Caterpillar’s facilities in the US followed by additional validation and testing of dual-fuel trucks at Vale’s operations.

“Decarbonisation is a major challenge today, which will only be overcome by investing in solutions such as alternative fuels and electrification to reduce emissions without compromising efficiency and safety,” explains João Turchetti, Vale’s Decarbonization Engineering Director.

“As global industry leaders, Vale and Caterpillar are seeking not only to meet the demands of the mining sector but also to anticipate technological and environmental trends,” says Marc Cameron, Senior Vice President of Resource Industries Sales, Services & Technology at Caterpillar.