Vale's $12 Billion Investment in Carajas: A Boon for Brazil's Economy and Environment

Vale S.A., one of the world's leading metallurgy and mining groups, has announced a significant investment of $12.2 billion in its Carajás complex in northern Brazil. This strategic move, to be implemented through 2030, aims to strengthen the company's position in the global mining sector and boost the Brazilian economy. The investment will be presented at an event attended by Brazilian President Luiz Inácio Lula da Silva and members of his cabinet.

The Carajás complex, located in the state of Pará, is Vale's primary iron ore extraction operation and the largest of its kind in Brazil. In 2023, it produced 177.5 million metric tons of iron ore, accounting for more than half of the company's total output during that period. In addition to iron, the region is also key to copper and nickel production, with mines such as Sossego, Salobo, and Onça Puma.

Vale's CEO, Gustavo Pimenta, has highlighted the "enormous convergence" between the company’s projects and the country’s development agenda, indicating a strong alignment between Vale's investment plans and the government's goals. This new investment announcement reinforces that alignment and could mark a positive shift in Vale’s relationship with the government.

The investment plan is expected to accelerate copper production growth, in line with the company’s announced targets. The initiative includes a series of investments in technology, health and safety, equipment and operations maintenance, and sustainability. While Vale has not disclosed the investment amount for the New Carajás Project, the Presidency stated that R$70 billion will be announced for the initiative in the event registration notice.

Vale's strategic pillars include operating all around the globe, sharing its passion for work, efficiency, and reliability as one of the world's largest mining companies. The company is committed to positively impacting the future, working alongside society to achieve a more sustainable tomorrow.

The investment in the Carajas complex is expected to have significant economic and environmental impacts. The expansion of iron ore and copper mining operations at the Carajás complex will strengthen Brazil's position in the global metals market, contributing to the country's economic growth. The investment of R$70 billion ($12.2 billion) over the next eight years will boost the local economy in the Pará region, creating new job opportunities and stimulating growth.

Moreover, Vale has committed to incorporating more sustainable technologies and measures to mitigate the environmental impact of mining in the Amazon region as part of its "New Carajás" project. The company has already achieved 100% renewable electricity consumption in Brazil two years ahead of schedule, reducing its indirect CO2 emissions (Scope 2) to zero. It aims to achieve this globally by 2030.

Vale is also working to reduce its direct Scope 1 emissions by studying the adoption of alternative fuels, such as ethanol for trucks and green ammonia for locomotives, and replacing anthracite with zero-emission biocarbon in pelletizing furnaces. The company is investing in joint venture partnerships, renewable generation certificates in contracts (PPAs), and innovation initiatives for better efficiency in the use of batteries to move towards 100% renewable energy consumption globally by 2030.



By implementing these measures, Vale aims to manage potential risks and challenges associated with its expansion in the Carajas region, such as environmental degradation and climate change, while also contributing to Brazil's economic growth and development. The company's commitment to reducing its greenhouse gas emissions and promoting renewable energy aligns with Brazil's broader efforts to transition to a low-carbon economy.

In conclusion, Vale's investment in the Carajas complex contributes to Brazil's energy transition and decarbonization efforts by supporting the supply of critical minerals for clean energy technologies. The company's commitment to reducing its greenhouse gas emissions and promoting renewable energy aligns with Brazil's broader sustainability goals. Additionally, Vale's role in the global mining sector enables it to set an example for other companies and collaborate on best practices for sustainable mining, ultimately driving the industry's shift towards greater sustainability.