Tag Archives: Eduardo Bartolomeo

Vale and Petrobras to jointly investigate sustainable fuel use and CO2 capture, storage tech

Vale has signed a “protocol of intent” with one of the largest oil and gas producers in the world, Petrobras, to develop low carbon solutions that could see the two assess joint decarbonisation opportunities, including the development of sustainable fuels – such as hydrogen, green methanol, biobunkers, green ammonia and renewable diesel – and C02 capture and storage technologies.

The agreement, which takes advantage of the technical expertise of both companies and their synergies, also includes potential commercial agreements for the supply of low-carbon fuels produced by Petrobras to be used in Vale’s operations, which could contribute to the company’s commitment to reducing its greenhouse gas emissions.

Eduardo Bartolomeo, Vale’s CEO (on the right), said: “Brazil has all the necessary conditions to lead a large-scale development of low-carbon solutions and renewable fuels, such as green hydrogen and green methanol. Vale is firmly committed to reducing its carbon footprint and wants to be a protagonist in this journey, leveraging relevant actions for the energy transition in Brazil. This agreement with Petrobras fits perfectly into this context.”

Petrobras President, Jean Paul Prates (on the left), added: “Petrobras’ partnership with Vale will be strategic in driving the country’s energy transition. These are the two biggest Brazilian powers joining forces around a common purpose: to develop the most modern solutions to reduce greenhouse gas emissions. We are going to leverage the production capacity, logistical structure and technological expertise of two national giants to boost the production and supply of more efficient and sustainable fuels. This is what we can call being a first mover to materialise our decarbonisation strategy, creating demand and scale for low-carbon solutions.”

This partnership, Vale says, can help it achieve its commitment to reduce its absolute Scope 1 and 2 emissions by 33% by 2030 and achieve neutrality by 2050, in line with the Paris Agreement.

Vale and Vivo extend reach of 4G across Carajás Railroad

Vale has started to implement, in partnership with Vivo, an unprecedented technology infrastructure to extend the reach of the 4G internet signal along the Carajás Railroad, which connects the states of Maranhão and Pará, covering 28 cities in Brazil.

The initiative includes the installation of 49 new telephone towers and the activation of the signal on another 27 towers already installed, as well as the acquisition and installation of new equipment. The investment, worth around BRL240 million ($50 million), should be completed by 2025 and will benefit communities close to the railroad and the railroad operation, as well as improving connectivity on the Passenger Train.

Eduardo Bartolomeo, Vale’s CEO, said: “This initiative is in line with our commitment to invest in projects of shared value with society. It meets not only Vale’s needs – modernizing the technology used to exchange data during the movement of trains – but also those of the communities, with the provision of a 4G signal along the entire route of the Carajás Railroad, and also the users of the Passenger Train, improving connectivity during the journey.”

Alex Salgado, VP of Business at Vivo, said: “Our private network project plays a leading role in the materialisation of initiatives that accelerate industrial digitalisation, leveraging technologies such as IoT, big data, artificial intelligence and analytics within the operation, transforming data into intelligence, ensuring greater safety, cost reduction and efficiency gains. And in addition to technological advances within Vale’s railroad operation, the companies will go further and share with the population the benefits of excellent connectivity in all the municipalities close to the railroad.”

The new 4G-based private network infrastructure will bring more security and efficiency to the operation of the Carajás Railroad, which is already considered the safest railroad in Brazil by the National Land Transport Agency, Vale says. All communication on the railroad will be changed from analogue to digital, speeding up access to data generated by the trains and making it possible to implement even more innovative systems in the future.

The railroad will have real-time video transmission, giving the driver greater visibility of what is happening on all sections of the track. Information generated by telemetry on the train’s performance will also be available in real time along the entire length of the railroad. In addition, cell phone communication between employees will be more stable.

The investment in the railroad is part of an initiative started in 2019, when Vale signed the first contract with Vivo to install a private 4G network in its operations.

Paulo Pires, Chief Technology Officer, said: “Since 2019, this network has already been deployed in Carajás, where it enables the operation of 22 pieces of autonomous equipment, including haul trucks and drilling rigs, and in Itabira, where it supports dam monitoring.”

A significant social impact of this technology project is the provision of free internet access points along the railroad, in high-traffic locations such as hospitals, schools and community centers. Vale’s teams have already started dialoguing with leaders and representatives of public authorities to determine which locations will benefit. There will be around 280 access points.

In addition, by the end of 2024, all 15 passenger stations along the Carajás Railroad will have a free internet signal for users.

Vale gears up for low-carbon iron ore briquette production in Brazil

Vale has started load tests of its iron ore briquette plants at the Tubarão Unit in Vitória, Brazil, as part of a project it believes could eventually reduce steel industry CO2 emissions by up to 10%.

The load tests are part of the plant’s commissioning and are one of the last stages before production begins, it said.

Vale’s CEO, Eduardo Bartolomeo, said: “This is a historic moment for the steel industry. After several years of development in Brazil, we are offering an innovative product that will support our clients in the challenge of decarbonising their operations and we are meeting demands from society to fight climate change.”

The briquette is produced from the low-temperature agglomeration of high-quality iron ore using a binder technology solution, which gives the final product high mechanical strength.

Announced by Vale in 2021, the briquette has the capacity to reduce greenhouse gas emissions in steel production by up to 10% compared with the traditional blast furnace process by eliminating the carbon-intensive sintering stage. This reduction is significant when considering that the steel industry is responsible for around 8% of the world’s emissions.

The product also reduces the emission of particulates and gases such as sulphur dioxide and nitrogen oxide, as well as eliminating the use of water in its production. The briquette can also be used in the direct reduction route, replacing the pellet.

The first briquette plant in Tubarão (pictured, photo: Rafael Coelho) is scheduled to start up this year and the second plant at the beginning of 2024. They will have the capacity to produce 6 Mt/y of briquette. The two units were originally dedicated to the production of pellets and were converted for briquettes. Investment in the project amounted to $256 million and generated 2,300 jobs during construction.

Vale began developing briquettes around 20 years ago at the Ferrous Technological Center in Nova Lima (Minas Gerais). It is part of the evolution of iron ore products offered by the company throughout its history, the result of significant investments in research and innovation. Until the 1960s, the basic product was high-iron lump. As the supply of lump fell, the first pelletising plants were set up in Brazil, which allowed the use of fine ore (pellet feed) and continue to be important for the steelmaking chain. The briquette, as well as pellets, are part of Vale’s portfolio of high-quality products. The company expects to expand its production capacity to 100 Mt/y of briquettes and pellets after 2030.

The briquette is also included in Vale’s strategy to reduce its Scope 3 emissions, related to the value chain, by 15% by 2035.

The company also aims to reduce its net direct and indirect carbon emissions (Scope 1 and 2) by 33% by 2030, as a first step towards becoming a zero-carbon company by 2050. Vale has already signed more than 50 agreements with clients to offer decarbonisation solutions, which account for 35% of the company’s Scope 3 emissions. Among the proposed solutions is the construction of briquette plants co-located on the premises of some customers.

Among the agreements signed, three aim to set up “Mega Hubs” in Middle Eastern countries (Saudi Arabia, the UAE and Oman) to produce “hot-briquetted iron” (HBI), in order to supply the local and transoceanic markets, with a significant reduction in CO2 emissions. It is expected Vale will build and operate iron ore concentration and briquetting plants at the hubs, supplying the raw material for the HBI plants, which will be built and operated by investors and/or clients. Vale is also studying the creation of similar hubs in Brazil, though no location has yet been defined.

Vale’s Sustainable Sand wins plaudits as miner starts construction on ‘green pig iron’ plant

Vale’s sustainability efforts are continuing to be displayed to the rest of the industry, with the major miner making a significant contribution to a report on the sustainable use of sand in mining and starting construction on a ‘green pig iron’ production facility in Brazil.

On the former, the University of Queensland, through its Sustainable Minerals Institute (SMI), and the University of Geneva, recently released a report indicating that sand from the ore production process may contribute to solving two important environmental issues by reducing sand extracted from the natural environment and the mining tailings generation. Vale contributed to the report and facilitated the sampling of its Sustainable Sand produced at the Brucutu mine in Minas Gerais for an independent analysis.

Vale’s Sustainable Sand is a co-product of iron ore processing. Based on adjustments in the operation, the sandy material, previously disposed in piles and dams, is now processed and transformed into a product, following the same quality controls as in the iron ore production. This year, Vale will allocate around 1 Mt of sand, between sales and donations, for use in civil construction and tests in pavement, among other uses.

The company came up with the process after seven years of research and investment of about BRL50 million ($8.9 million), it said last year.

The SMI report carried out by the universities, ‘Ore-sand: A potential new solution to the mining tailings and global sand sustainability crises’, investigated whether sand from ore processing, described by the term “ore-sand”, could become a sustainable source of sand and at the same time reduce the volume of tailings generated by mining.

Material characterisation results from the report indicate that the sampled material is inert and non-toxic, and can be suitable for certain applications, either on its own or as a part of a blend, such as with coarser sand, in order to meet specific grading requirements. Separating and repurposing these sand-like materials before they are added to the waste stream would not only significantly reduce the volume of waste being generated but could also create a responsible source of sand, Vale said.

The report found that, from a technical perspective, sand from iron ore operations can be a direct substitute for sand extracted from the environment in brick making, pavement, in embankments and cement manufacturing. When mixed with coarser sand and other aggregates, it can be used in the production of concrete and mortar, drainage and soil improvement, and water treatment.

The life cycle assessment of “ore-sand”, based on the case of Vale’s Sustainable Sand, also shows that this material has the potential to present lower net carbon emissions during its production when compared with sand extracted from the environment. However, to get a better idea of the potential of this reduction, it is necessary to carry out an assessment of the product’s transport stage, which was not covered in this report, Vale added.

Last week, Vale inaugurated the first road in Brazil using “ore-sand” in all four layers of the pavement. The 425-m-long road at the Cauê mine, in Itabira, will be monitored for two years with pressure, temperature, deformation and humidity sensors. Tests carried out during five years in the laboratory showed an increase in lifespan of around 50% and a cost reduction of 20% when compared with the most commonly used materials for road construction, such as sand extracted from the environment, Vale said. In addition, each kilometre of pavement can consume up to 7,000 t of tailings.

‘Green pig iron’

Earlier in the month, Vale and the Government of the State of Pará held an event to mark the beginning of the construction works of the first commercial plant of Tecnored in Brazil. Tecnored’s technology allows the production of so-called ‘green pig iron’, by replacing metallurgical coal with biomass, thus reducing carbon emissions and contributing to the decarbonisation of the steel industry.

The unit will have an initial capacity to produce 250,000 t/y of green pig iron, with the possibility of reaching 500,000 t/y in the future. The start-up is scheduled for 2025 with an estimated investment of approximately BRL1.6 billion ($342 million).

Vale’s President, Eduardo Bartolomeo, said the implementation of Tecnored represents an important step in the transformation of mining, contributing to making the process chain increasingly sustainable.

“The Tecnored project is of great importance to Vale and to the region and will bring gains in competitiveness, environmental sustainability and development for the region,” he said.

Eduardo Bartolomeo greets the Governor of Pará, Hélder Barbalho, during the launch ceremony for the Tecnored commercial plant

In the implementation phase of the project, which will work in the area of the old Ferro-Gusa Carajás, in the industrial district of the municipality, it is estimated that around 2,000 jobs will be generated at the peak of works. In the operational phase, about 400 direct and indirect jobs should be created, according to progress and engineering studies.

The Tecnored furnace is much smaller in size than a traditional steel blast furnace and is flexible in its use of raw materials, which can range from iron ore fines and steel residues to dam sludge, Vale said.

As fuel, the furnace can be fed by carbonised biomass, such as sugarcane bagasse and eucalyptus. Both are transformed into briquettes (small compact blocks) and deposited in the furnace, generating green pig iron. The furnace also allows the use of thermal coal itself as fuel. In this first instance, fossil fuels will be used to evaluate the performance of the plant, Vale explained.

Leonardo Caputo, Tecnored’s CEO, said: “Gradually, we are going to replace coal with carbonised biomass until we reach the goal of 100% biomass.”

The flexibility in the use of fuels in the furnace allows operating costs to be reduced by up to 15% compared with a traditional blast furnace, Vale claims.

Developed over the last 35 years, Tecnored’s technology also eliminates the coke furnaces and sintering processes: stages prior to the production of steel in the steel mill that are intensive in their greenhouse gas (GHG) emissions. This also reduces capital costs by up to 15%, according to Vale.

In addition, the plant is self-sustaining in terms of energy efficiency, with all the process gas reused and a portion used for energy co-generation, the company said. The slag by-product can be used as raw material in the cement industry.

Currently, Vale maintains a demonstration plant of this technology in Pindamonhangaba, with a rated capacity of 75,000 t/y, where tests were carried out to develop the technology and technical and economic feasibility.

Tecnored’s commercial plant in Marabá is part of Vale’s effort to offer its steelmaking customers technological solutions to help decarbonise their production processes.

In 2020, the company assumed the goal of reducing Scope 3 net emissions by 15% by 2035. Of this total, the company will contribute up to 25% through a high-quality products portfolio and technological solutions, including green pig iron. Today, the steel industry represents 94% of Vale’s Scope 3 emissions.

Vale also announced the goal achieving net zero Scope 1 and 2 emissions by 2050 and, to that end, it is investing between $4-6 billion, as well as committing to recover and protect another 500,000 ha of forest in Brazil.

Vale sells New Caledonia nickel-cobalt operations to consortium

Vale confirms that its Vale Canada Limited subsidiary has concluded the sale of its ownership interest in Vale Nouvelle-Calédonie SAS (VNC) to the Prony Resources New Caledonia consortium.

The consortium of investors, including Trafigura, comprises a majority and non-dilutable shareholding for New Caledonian interests, Vale said.

Eduardo Bartolomeo, CEO of Vale, said: “After several months of negotiations, I am pleased that we concluded our divestment of VNC, benefitting employees, New Caledonia and all its stakeholders. Vale is fully committed to this transaction. It meets the guarantees required at the financial, social and environmental levels and offers a sustainable future for the operations.”

Vale’s intent from the beginning of the divestment process was to withdraw from New Caledonia in an orderly and responsible manner, with the company saying the deal accomplishes that.

Vale previously tried to sell the operations to Australia-based New Century Resources, but the two parties failed to reach an agreement.

The deal provides the former VNC operations with a financial package totaling $1.1 billion, of which Vale Canada Limited is contributing $555 million to support the continuity of the operations. The financing of the “Pact for the Sustainable Development of the Deep South” will also be secured by Vale, it said.

The Pact for Sustainable Development of the Deep South was signed on September 27, 2008, between Vale New Caledonia and communities south of the “Grand” for a period of 30 years. It urges the industry to create and implement specific measures to support the development of the Deep South in a sustainable manner.

In addition to its financial commitment to continue operations, Vale will continue to have the right to a long-term nickel supply agreement for a proportion of the operation’s production, allowing it to, the company says, continue addressing the growing demand for nickel by the electric vehicle industry.

Mark Travers, Executive Vice President for Base Metals with Vale, said: “Along with the continuation of the Pact, the deal also allows the Lucy Project for dry storage of tailings to proceed. We want to acknowledge the time and effort of all stakeholders to achieving this deal, including the French State, and especially the employees of VNC for their trust and support through a lengthy and uncertain process.”

VNC is a producer of nickel and cobalt from the Goro mine. It also has a processing plant and a port.

Vale to tackle Scope 1 and 2 emissions with plus-$2 billion investment

Vale has topped its fellow Tier 1 miners with a plan to invest at least $2 billion in an effort to combat climate change.

The amount, the largest ever committed by the mining industry to combat climate change, according to the company, is geared towards reducing its direct and indirect absolute emissions (Scope 1 and 2) by 33% by 2030.

Rio Tinto, in February, announced a plan to invest “more than $1 billion” over the next five years to support the delivery of its new climate change targets, while BHP, in July 2019, announced a five-year, $400 million Climate Investment Program to develop technologies to reduce emissions from its own operations as well as those generated from the use of its resources.

The goal complies with the Paris Agreement, which established a maximum limit to ensure the global average temperature rose by no more than 2°C by 2100, Vale said.

“With this initiative, Vale aims to transform itself into a company with zero net emissions in Scope 1 and 2 by 2050, leading the industry towards carbon-neutral mining,” the company said.

The plan was unveiled yesterday (May 12) by Vale’s CEO, Eduardo Bartolomeo, during the annual meeting with analysts from the Bank of America Merrill Lynch, carried out virtually.

It is an advance on the corporate climate agenda, which Vale set out in December last year.

Back then, Vale announced its goal to reduce its emissions and established an internal carbon pricing of $50/t of CO2, equivalent for capital projects and competitors.

Bartolomeo said: “This agenda is a result of a listening process, aligned with a real climate change-related demand from society for a robust reduction in emissions in the Scope 1 and 2. We are stepping forward to develop a New Pact with Society with more transparency and responsibility.”

Vale has established the Low Carbon Forum – a group led by the CEO and comprised of six executive directors and employees from different areas of the company – whose purpose is to guide the implementation of these Scope 1 and 2 commitments.

According to Luiz Eduardo Osorio, Vale’s Executive Director for Institutional Relations, Communication and Sustainability, 35 initiatives are under analysis using the Marginal Abatement Cost Curve – a tool that allows the ordering of projects by costs and potential for reducing emissions.

He said: “There are projects for the use of biodiesel in the area of Base Metals, energy efficiency, electrification of mines and railroads, biofuels in pelletising instead of coal, and renewable energy because one of Vale’s goals is to achieve 100% of self-production of electric power from clean sources, such as wind and solar, in its plants around the world.”

By the end of the second half of this year, some pilot projects will be in operation, it said.

The Vitória-Minas railroad will have the first 100% electric locomotive, electric vehicles will be tested in underground operation at the Creighton (photo above is of a trial of the Rokion battery-powered R200 personnel carrier at Creighton) and Coleman mines in Canada, and Vale’s pelletising plant in São Luís (Maranhão) will replace coal with biofuel, it said.

The base year used to calculate the carbon goal was 2017, when Vale’s emissions reached 14.1 Mt CO2 equivalent. The goal is to reduce it to 9.5 Mt of CO2 equivalent by 2030.

Vale will also recover and protect another 500,000 ha of native forest by 2030, on top of the more than 1 Mha it currently protects worldwide, it said.

“In addition to its ambition to neutralise its Scope 1 and 2 carbon emissions by 2050, Vale aims to establish a goal for Scope 3 emissions to encourage clients and suppliers in the same direction,” it said.

Through active engagement with clients from the steel and metallurgy industries, Vale says it will work to reduce emissions in its value chain.

“The company will guide its operations based on win-win relationships, less intensive products and new technologies,” it said.

BHP and Vale invest in COVID-19 testing and mitigation measures in Chile, Brazil

BHP and Vale have invested in measures to help mitigate the spread of the COVID-19 virus in Chile and Brazil, respectively.

While BHP has already announced COVID-19-related plans to hire more people and provide preventative measures in Australia, on top of freeing up money for to support local suppliers, it has now tabled its $8 million strategy in Chile aimed at strengthening the country’s public health network in the face of the pandemic.

It has joined with the Medical Faculty of Universidad Católica with the immediate objective of raising the testing capacity and strengthening the Familiar Health Centers of the South East Area of the Metropolitan Region, as well as Antofagasta and Tarapacá – where its majority-owned Escondida and Cerro Colorado copper operations, respectively, reside.

This plan includes:

  • An Early Detection Program through rapid testing, in support of the Primary Attention Centers (this includes 150,000 rapid tests for detecting the virus). This system includes 10 units for sampling, with mobile tents and permanent units, the company said;
  • Expansion of laboratory capacity, including the purchase of new analysis equipment to maximise the speed for processing tests. Results will be delivered to patients in 24 hours, BHP said;
  • Community surveillance for cases that test positive and their contacts, based at Primary Attention Centers and telemedicine; and
  • A 24/7 call centre for identifying potential cases.

Daniel Malchuk, President Operations at Minerals Americas, said: “This plan shows our commitment and our profound belief that we should work together to face the difficult times we are going through.”

In addition, BHP will implement a program to support communities and high-risk vulnerable groups in the regions where the company operates, Antofagasta and Tarapacá. This will allow the delivery of supplies, sanitisation of public areas, areas for the isolation of potential cases and support to the state network to increase medical rounds, supplies and treatment for high-risk people, it said.

BHP previously changed the terms of payment for all providers and collaborators in Chile, with large taxpayers cut to 30 days, small and medium enterprises reduced to 14 days and local companies from the Antofagasta and Tarapacá Regions having their terms cut to seven days.

Vale, meanwhile, said its China subsidiary had recently taken delivery of the first batch of 5 million rapid test kits to diagnose COVID-19.

The tests, which can provide results in just 15 minutes, were purchased from China and will be delivered to the Brazilian government, it said. Produced by the Chinese company Wondfo, the test is registered at the National Health Surveillance Agency (Anvisa, Agência Nacional de Vigilância Sanitária) and was donated by Vale to help the Brazil Government fight the spread of the virus in the country.

Some 500,000 units are currently in transit (by plane) from Guangzhou Baiyun International Airport, in the Chinese province of Guangdong, on their way to the International Airport of Guarulhos (São Paulo). They are expected to arrive in Brazil this evening.

Vale’s CEO, Eduardo Bartolomeo, said: “Vale offers this support to the Brazilian society at this time when the country is united for the health and safety of people. We are using our logistics network from Asia to bring inputs that can make a difference in people’s lives in Brazil.”

The remaining 4.5 million units will be delivered by the supplier in April, Vale said.

The amount of test kits purchased by Vale represents half of the needs estimated by the Brazilian Ministry of Health as of March 22, it explained.