Can you provide an update on Vale’s activities in Brazil over the past year?

Vale has been advancing in its ambition to become a leader in sustainable mining and in creating and sharing value with its shareholders, other stakeholders and society as a whole. The company is playing a key role in the global energy transition, with its portfolio of high-quality iron ore products and solutions, essential for the decarbonization of the steel industry, and as a producer of metals essential for the world’s electrification.

We are also taking significant steps to contribute to Brazil's neo-industrialisation as we are working to leverage the production of green hydrogen by partnering with steel producer H2 Green Steel to jointly study the development of an industrial hub in Brazil. In this industrial complex, H2 Green Steel would produce low carbon products, such as green hydrogen and hot briquetted iron (HBI), using iron ore briquettes produced by Vale as input material and renewable electricity as the energy source for its hydrogen production.

We have also signed agreements with clients in the Middle East to create “mega hubs” focused on low-carbon products. We are promoting circular mining, which helps reduce our waste generation, and we have an arc of initiatives ranging from science to research, including actions to encourage the bioeconomy and forestry agenda.

The company also remains committed to promoting inclusion and diversity. At the end of 2022, women accounted for 22.1% of our workforce and our goal is to reach 26% by 2025. In terms of ethnic-racial equity, 32.1% of Vale’s leadership positions in Brazil are held by black employees and we want to reach 40% by 2026.

We continue to make substantial progress in our operational performance and safety practices. We have a growth path based on a disciplined capital allocation process and on creating value for our company and for society.

Vale recently announced a strategic partnership with Manara Minerals and Engine No. 1 to accelerate the growth of Vale Base Metals. Would you elaborate on this strategic partnership?

We signed an agreement with Manara Minerals, a joint venture between Ma’aden and Saudi Arabia’s Public Investment Fund, under which Manara Minerals will invest in Vale Base Metals Limited (VBM), the holding entity for Vale’s energy transition metals business, at an implied enterprise value of US$ 26 billion. Concurrently, Vale and investment firm Engine No. 1 entered into an agreement pursuant to which Engine No. 1 will make an equity investment in VBM under the same economic terms.

This strategic partnership will accelerate VBM’s expected US$25-30 billion capital program over the next decade and help drive a significant potential increase in production from about 350,000 t/y to 900,000 t/y in copper and from roughly 175,000 t/y to more than 300,000 t/y in nickel.

What was the strategy behind Vale’s US$2.7 billion investment to expand iron ore production in the Amazon?

This is part of our strategy to expand operations in Northern Brazil, especially the S11D mine, where we have the best reserves of 65% iron content and most competitive in cost. The higher iron content in the ore extracted from underneath Carajas’ rich topsoil helps reduce the amount of fossil fuels needed to make steel.

What is the socioeconomic impact of Vale’s mines on the surrounding areas?

Through Fundo Vale, we are supporting forest recovery and protection initiatives, as well as investing in research on biodiversity through the Vale Institute of Technology (ITV). From 2009 to 2022, Fundo Vale contributed R$269 million to support 324 businesses with a positive socio-environmental impact, benefiting 18,500 rural producers and extractivists, mostly in the Amazon. On the social front, in 2021 our Executive Committee announced the bold target to help get half a million people out of extreme poverty by 2030. In 2022, we developed a roadmap with targeted actions.

Through the Vale Foundation, Vale is working to expand people’s access to the rights to education, health, and social assistance, aiming to improve municipal indicators and expand access for those in situations of greater social vulnerability and exclusion.

What are Vale’s primary goals?

We are fundamental for the decarbonization as we supply high-grade, low-carbon iron products as well as essential metals for a green economy.

We also have made consistent progress in our journey to be a more sustainable, efficient and innovative company. We want to be a driving force of the transformation of society, in our relationship with people, communities and the environmental, social and cultural agendas.