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[waldron] 05/10/2021 19:39

Profiling the world’s top five iron ore producing companies in 2020

Features & AnalysisMiningOther Commodities

By NS Energy Staff Writer 10 May 2021

Many of the world's largest miners are involved in producing iron ore, with significant amounts of activity based in Western Australia
Iron Ore Christmas Creek Australia - FMG

Christmas Creek iron ore processing facility in Western Australia (Credit: Fortescue Metals Group)

Iron ore producing companies supply a vital component of modern industry, with iron ore used across the world primarily as an ingredient in steel manufacturing.

The metallic ores, which can vary in colour from dark grey and bright yellow, to purples and reds, comprise around 5% of the Earth’s crust and are commonly found in four main types of deposit, the most frequently mined being hematite.

Worldwide production of these ores totalled an estimated 2.4 billion tonnes in 2020, according to data from the US Geological Survey.

This was slightly lower than in 2019, largely due to disruption caused by the coronavirus pandemic – but analysts have forecast a rebound over the coming years as mining operations resume and demand, driven by China’s huge steelmaking industry, makes a resurgence.

Australia possesses the world’s largest-known iron ore reserves with around 50 billion tonnes available to be unearthed, and many of the most productive iron ore miners have based their operations in this country.

Here, NS Energy profiles the top five iron ore producing countries in the world, based on their mining output in 2020.


Top five largest iron ore producing companies in the world in 2020


1. Vale – 300 million tonnes

Brazilian miner Vale was the world’s top producer of iron ore in 2020, with an output totalling just over 300 million tonnes – a small decline from 2019 when it produced 302 million tonnes of the metallic ore.

The Carajás mine in northern Brazil is Vale’s largest operation and is among the biggest iron ore mines in the world.

Brazil ranks second among countries with the world’s largest iron ore reserves, and Vale’s production operations are focused in this region of South America.

Vale’s iron ore production has fallen from former heights in recent years, but the miner is targeting annual production capacity of 400 million tonnes by the end of 2022.

The company is headed by chief executive officer Eduardo Bartolomeo.


2. Rio Tinto – 286 million tonnes

Anglo-Australian miner Rio Tinto produced just under 286 million tonnes of iron ore in 2020 – a 1.7% increase on the previous year.

The company’s iron ore operations are largely based in the Pilbara region of Australia, which is the world’s top iron ore producing country and home to the largest known reserves.

It’s Pilbara operations comprise a network of 16 iron ore mines, four independent port terminals, a 1,700-kilometre rail network and other related infrastructure.

Rio Tinto also has a majority interest in Iron Ore Company of Canada (IOC), which contributed 10.4 million tonnes to its overall production in 2020.

Jakob Stausholm is currently chief executive officer, having replaced former boss Jean-Sébastien Jacques who resigned in 2020 after Rio’s controversial destruction of an aboriginal heritage site in Pilbara during 2020.


3. BHP – 248 million tonnes

Australia-headquartered BHP mined just over 248 million tonnes of iron ore in its financial year ended 30 June 2020, marking a 3.9% annual increase.

In the six months to December 31 2020 – the first half of its 2021 financial year – the company produced 128 million tonnes of iron ore, and has set full-year guidance at 245-255 million tonnes.

Like Rio Tinto, BHP’s iron ore assets are focused in the resource-rich Pilbara region of Western Australia, including five mines, four processing hubs and two port facilities, known collectively as Western Australia Iron Ore (WAIO).

The diversified miner, which is also second among the world’s largest copper mining companies, is headed by CEO Mike Henry, who has been in the role since January 2020.

He succeeded former boss Andrew Mackenzie who has since been appointed chairman of oil major Royal Dutch Shell.
iron ore producing companies
Mining truck at BHP’s Newman iron ore hub in Pilbara, Western Australia (Credit: BHP)
4. Fortescue Metals Group – 204 million tonnes

Australia’s Fortescue Metals Group (FMG) ranks fourth among the world’s largest iron ore producing companies, with output of just over 204 million tonnes in its financial year ended 30 June 2020 – a slight decrease compared to the previous 12 months.

In the first half of its 2021 financial year, the company produced 108.4 million tonnes of iron ore.

Unlike the other companies on this list which have diversified interests across a number of commodities, FMG’s sole focus has historically been on iron ore mining.

However, it is also in the process of broadening its horizons with exploration ventures in other parts of Australia as well as in Ecuador, Argentina, Colombia, Peru, Portugal and Kazakhstan for minerals including copper, gold and lithium.

The miner operates assets across the Pilbara region, including the Chichester and Solomon mining hubs, and it is in the process of developing the Western Hub, which will be home to the Eliwana mine.

Fortescue is headed by chief executive officer Elizabeth Gaines, who has held the position since 2017 and was previously the company’s chief financial officer.


5. Anglo American – 61 million tonnes

Anglo American produced just over 61 million tonnes of iron ore in 2020, down from 65.5 million tonnes in the previous year.

The London-headquartered mining business has two major operations focused on iron ore production – a majority ownership of the Kumba project in South Africa as well as the Minas-Rio operation in Brazil.

The Kumba project comprises two open pit mines – Sishen and Kolomela – with production shipped to China, Japan, Europe, India and the Americas.

Mark Cutifani has been Anglo American CEO since 2013.

[misca2] 04/2/2021 21:30

Vale dam disaster: $7bn compensation for disaster victims

Published

3 hours ago

[florenceorbis] 23/1/2021 09:50

Vale targets coal exit as it prepares sale of Moatize mine in Mozambique

MiningCoal

By Andrew Fawthrop 21 Jan 2021

The Brazilian miner will acquire a partner's 15% share in Moatize coal mine, ahead of a planned divestment of the entire project and its associated infrastructure
mining truck 2

Japanese firm Mitsui has sold its interests in the venture back to Vale for a nominal fee

Vale has taken its first step towards exiting the coal market, striking a deal that will advance the sale of its Moatize mine in Mozambique.

The Brazilian miner agreed to acquire a 15% stake in the venture held by Japanese trading company Mitsui for a token fee ($1), as well as Mitsui’s interests in the Nacala Logistics Corridor (NLC) being constructed to service the mine – with a view to consolidating both operations ahead of a future sale.

The agreement anticipates Mitsui’s exit from the project can be completed this year, after which Vale will begin searching for a “third party interested in those assets”.

It added it will maintain “operational continuity” during this process, supporting the project’s ramp-up and keeping commitments to various stakeholders, including local labour and resettlement agreements.


Vale says mine upgrades will allow Moatize to produce 18 million tonnes of coal per year by 2022

Moatize is Vale’s largest venture in the coal sector, and has been operational since 2011.

In 2017, Mitsui paid $690m for the 15% interest in the mine, as well as a 50% interest in the NLC project to provide port and rail infrastructure.

Vale is currently implementing upgrades at the facility, which it expects will increase production rates to 15 million tonnes per year in the second half of 2021 and 18 million tonnes per year by 2022.

The combined mine and infrastructure assets have outstanding debt totalling $2.5bn, which Vale says it will reclassify to financial expenses, debt amortisation and sustaining capital.

“Future refinancing of the project finance and simplification of the structure will lead to potential annual savings of approximately $25m,” the company said in statement.

Analysts suggest Vale may look to Chinese buyers to offload the venture, according to reports, given the ongoing trade tensions between Beijing and Australian coal exporters.


Mining majors increasingly looking to a coal-free future

The move underscores a growing shift away from coal assets among the world’s biggest mining companies, as the fossil fuel is gradually phased out of the global energy mix, and investors increasingly demand environmental commitments from corporate leadership.

Vale said the planned divestment is “in line with the focus on its core businesses and ESG agenda, committed to becoming carbon-neutral by 2050 and reducing 33% of its Scopes 1 and 2 emissions by 2030”.

BHP has confirmed similar plans to divest its coal-producing assets, including the huge Mount Arthur mine in Australia – and yesterday confirmed a writedown of $1.15bn-$1.25bn on its New South Wales Energy Coal unit as it seeks to offload the venture.

Anglo American plans to divest its South African thermal coal operations by 2023, while Rio Tinto has already completed its coal exit, selling the last of its coal mines in 2018.

Glencore recently pledged an extensive decarbonisation agenda, although says “responsible stewardship” and reduction of its coal portfolio will be the priority, rather than a rush to abandon all of its coal assets.

[grupo] 24/12/2020 06:49

BHP And Vale Restart Samarco Operations In Brazil After 2015 Dam Burst

Thu, 24th Dec 2020 06:26
Alliance News

(Alliance News) - BHP Group PLC on Thursday said Samarco Mineracao SA has met the licensing requirements to restart operations at its Germano mine complex in Minas Gerais and its Ubu complex in Espirito Santo, Brazil.

BHP Billiton Brasil Ltda and Vale SA each hold a 50% interest in Samarco.

Samarco's operations were suspended following the catastrophic failure of the Fundao tailings dam in November 2015.

On Thursday, Melbourne, Australia-based BHP said Samarco's gradual restart of operations incorporates concentrator 3 at the Germano complex and pelletising plant 4 at Ubu, as well as a new system of tailings disposal combining a confined pit and tailings filtering system for dry stacking.

Samarco expects initially to produce approximately 8 million tonnes of iron ore pellets per annum.

Independent tests have been carried out on Samarcos preparations for a safe restart of operations, BHP said.

Meanwhile, the work undertaken by the Renova Foundation to remediate and compensate for the damages of the failure of the Fundao dam in 2015 continues, and BHP Billiton Brasil continues to support Renova in its work.

The dam collapse in the city of Mariana had resulted in 19 deaths and forced hundreds from their homes. Considered the worst environmental disaster in Brazilian history, it left 250,000 people without drinking water and killed thousands of fish. An estimated 60 million cubic meters of waste flooded rivers and eventually flowed into the Atlantic Ocean.

BHP shares closed up 1.2% on Thursday in Sydney at AUD42.95 a share.

By Evelina Grecenko; [e-mail]

[the grumpy old men] 09/10/2020 10:55

Profiling the world’s top five nickel-producing companies

Features & AnalysisMiningNickel

By NS Energy Staff Writer 08 Oct 2020

The top five nickel producing companies conduct their business across South America, Europe, Asia and Australia
nickel_vladimir-patkachakov-ZAP1duyEIR4-unsplash

Heavy machine mining (Credit: Vladimir Patkachakov/Unsplash)

Several companies around the world are involved in producing nickel, which has a range of useful applications in modern life, from manufacturing to electronics.

The fifth most common element found on Earth, it has been known to be used by humans as far back as 3500 B.C.

Naturally-occurring nickel is mostly present as oxides, silicates and sulphides. It has been estimated that more than two million metric tonnes of this white metal are produced in the world every year.


Nickel has a broad range of industrial applications

Always used as an alloy, in combination with other metals, and seldom used alone, nickel alloys exhibit some unique properties that are absent in pure metals. Mostly used to manufacture stainless steel, nickel provides its strength and anti-corrosive property.

Also, for steel that is made to be less magnetic, nickel forms the main ingredient. Its ability to withstand high temperatures has made it a significant component in superalloys and specialty steels such as those used in jet engines.

Nickel alloys are also used in industrial gas turbines, heat exchangers in power plants, resistance wires, electric-vehicle batteries and furnace components. One of its most common uses is nickel plating.

Indonesia is the top nickel producing country, although the Philippines is expected to overtake it in 2020.

Although 80% of all the known nickel deposits mined until now have been unearthed in the past 30 years, the nickel reserves and resources since then have also witnessed a steady growth.

Significant nickel deposits are believed to be present in manganese nodules that are found in the deep sea, which are estimated to be over 290 million tonnes. Access to these can only be made possible with the future development of deep-sea mining technologies.


The world’s top five nickel-producing companies
1. Vale – 208,000 metric tonnes

Formerly called Companhia Vale do Rio Doce, Vale is a diversified multinational metals and mining company founded in 1942, and headquartered in Rio de Janeiro, Brazil.

Vale is the world’s largest producer of nickel, one of the most versatile metals in existence. It owns nickel mines and operations in Brazil, Canada, Indonesia and New Caledonia, as well as fully-owned and joint-venture refineries in China, South Korea, Japan, the UK and Taiwan.

It produces a wide range of products that are able to meet the diverse needs of nickel consumers.

Vale’s 2019 nickel production was estimated to be 208,000 metric tonnes – a considerable drop from the 243,000 tonnes that were produced in 2017.
top nickel producing companies
Nickel coins (Credit: Claudio Schwarz/Unsplash)


2. Norilsk Nickel – 166,265 metric tonnes

Established in 1993 with headquarters in Moscow, Russia’s Norilsk Nickel is a diversified mining company producing nickel and palladium – as well as silver, gold, platinum, rhodium, cobalt, sulfur, selenium, tellurium, iridium and ruthenium.

It comes second on our list of top nickel-producing companies and also possesses the largest nickel reserves and the largest nickel sulfide deposit in the world. Called Nornickel for short, Norilsk Nickel is also the world’s top low-cost nickel producer.

Engaged in mining operations spanning three continents and five countries, Nornickel explores, extracts and refines ore and nonmetallic minerals, and sells the base and precious metals that are produced from the ore.

In 2019, Nornickel produced 166,265 metric tonnes of nickel – a slight increase from the 163,000 tonnes produced in 2017.
Jet engine (Credit: Luka Slapnicar/Unsplash)


3. Jinchuan Group – 150,000 metric tonnes

Founded in 1958 and based in Gansu, Jinchuan Group International Resources is China’s top nickel producer and comes third in our list of world’s top nickel-producing companies.

With a large-scale international presence, Jinchuan is a diversified mining company whose major operations include mining, milling, smelting and chemical processing.

It also mines for platinum, copper, selenium, palladium, silver, gold and cobalt, and owns the third-largest copper-nickel sulphide deposit in the world (located in China).

Jinchuan’s other engagements, such as trading in mineral and metal products, complement its mining operations.

The Chinese company’s current annual nickel production has been estimated at about 150,000 metric tonnes.
top nickel producing companies
Nickel Batteries (Credit: Frank Wang/Unsplash)


4. Glencore – 121,000 metric tonnes

Switzerland-based commodity trading and diversified mining company Glencore was established in 1974.

Fourth in our list of leading nickel producers, Glencore has assets in Europe, North America and Australia. It runs about 150 operations globally, which include mining, metallurgical and oil production sites. It also produces some of the world’s purest nickel.

Glencore’s marketing business deals not only in nickel as a metal but also ferronickel, concentrates and intermediates.

It is one of the top processors and recyclers of nickel-bearing materials, such as batteries. Glencore also produces other metals such as platinum group metals, copper and cobalt as a by-product while producing nickel.

It owns nickel mines in Norway (Nikkelverk), Canada (Sudbury INO and Raglan), Australia (Murrin Murrin), and New Caledonia (Koniambo), which also comprise sulphide and laterite ores.

Glencore produced 121,000 metric tonnes of nickel in 2019 – a dip from the 130,000 tonnes produced in 2017.
Steel cutlery (Credit: Louis Hansel/Unsplash)


5. BHP Group – 87,400 metric tonnes

Previously known as BHP Billiton, Melbourne-headquartered, Anglo-Australian diversified mining company BHP Group increased its nickel production from 70,000 metric tonnes in 2017 to 87,400 tonnes in 2019.

All its nickel operations―whether open-cut or underground mines, concentrators, smelters or refineries – are located in Western Australia.

One such operation is BHP‘s fully-integrated mine-to-market nickel business Nickel West, located in Kalgoorlie, Australia. Nickel West is a major value add throughout BHP’s nickel supply chain, as most of its current production is sold in the international market as high-quality nickel metal.

BHP Group recently purchased nickel tenements in the form of the Honeymoon Well Nickel Project in Western Australia; formerly a unit of Norilsk Nickel. The deal marks the exit of the Russian miner from the country.

[grupo] 05/10/2020 12:51

Alastair Ford

12:22 Mon 05 Oct 2020


Alien Metals Ltd has a diverse portfolio of commodities to develop

Vale and Tesla in talks to secure nickel supply for batteries

Tesla is the world's biggest electric car manufacturer and Vale is the world's biggest nickel miner


The nickel price ticked up modestly this morning as a reports that Brazilian miner Vale (NYSE:VALE) is in talks with Tesla (NASDAQ:TSLA) about a secure supply of nickel.

Nickel is one of the key components that Tesla uses in the manufacture of batteries for its electric vehicles, and in recent months there has been concern about possible bottlenecks in supply.

Tesla chief executive Elon Musk even tweeted that he hoped nickel companies would develop new ‘ethical’; projects now, and not just after the price had risen.

Although that remark displayed a certain disconnect from the realities of mining economics, it did nevertheless put the nickel industry on notice.

And Vale, with its long-standing and well-known Canadian operations at Sudbury and Thompson and elsewhere, can at least tick a clear box as regards the ‘ethical’; side of things.

As battery manufacturers move to reduce the amount of cobalt in their batteries it is likely nickel will be used to fil the gap. The proportion of nickel used in batteries has been rising for some time with the most recent iteration, the NCM 811 battery, containing 80% nickel.

Not everything is hunky dory with nickel. There is more danger of combustion with higher nickel content batteries, especially if they are left plugged in, and several reports of nickel-related battery fires have come out of China this year.

Nevertheless, nickel as a major component in batteries is here to stay, and it’s perhaps not surprising to note that the nickel market is forecast to be in deficit to the tune of 40,000 tonnes this year.

Demand for nickel for use in lithium-ion batteries is forecast to rise to between 1.4mln and 1.8mln tons by 2030, according to broker share price Angel.

This would represent around 30% of total nickel demand up from 6% this year.

The majority of nickel is sourced from Indonesia which instituted an export ban as of January 2020. There have also been issues processing ore from another of the world’s major suppliers, the island of New Caledonia.

Proactiveinvestors

[podgyted] 13/9/2020 13:22

Brazil up to the task of feeding China demand:-

[sarkasm] 06/9/2020 10:49

ews

News
Vale uses blockchain technology to sell iron ore to Nanjing Iron & Steel

MiningOther CommoditiesOthers

By NS Energy Staff Writer 04 Sep 2020

According to Vale, the sale, which was made using blockchain technology, was a 176,000 tons cargo comprising Brazilian Blend Fines (BRBF), which was shipped from Teluk Rubiah Maritime Terminal in Malaysia to China
blockchain-3750157_640

Vale employs blockchain technology for the first time for an iron ore deal. (Credit: xresch from Pixabay)

Brazilian mining company Vale said that it has used blockchain technology for closing a sale of an iron ore cargo to Nanjing Iron & Steel Group International Trade, a subsidiary of Nanjing Iron and Steel (NISCO).

The sale was a 176,000 tons cargo comprising Brazilian Blend Fines (BRBF), which was shipped from Teluk Rubiah Maritime Terminal in Malaysia to China.

The transaction, which marks the first use of blockchain technology, is said to be in line with the Brazilian miner’s strategy of transforming into a more innovative and customer-centered firm by greater integration with clients and making partnerships for the development of new solutions.

According to Vale, the blockchain technology-driven sale is a major milestone towards the digitalisation of the sales and trade process. Furthermore, it brings innovation to the conventional paper-intensive trade transactions while providing a better service to clients and also predictability in the steel value chain.

The Brazilian miner revealed that the Letter of Credit (LC) was issued via Contour blockchain platform. On the other hand, the shipping documents and the electronic Bill of Lading were managed through essDOCS’ CargoDocs solution.
A single platform was used by Vale for conducting the sale using blockchain technology

Vale said that all the actions relating to the sale were executed via a single, interfaced platform that was consolidated in the Contour platform. The deal also had the backing of DBS Bank and Standard Chartered Bank Malaysia Berhad, said the mining group.

Vale stated: “The integrated transaction enabled end-to-end security and transparency with real time visibility of the documentation to all stakeholders, drastically reducing the amount of emails and paperwork exchanged among the parties and providing enhanced user experience through access to a single solution to execute the trade.”

Recently, the Brazilian miner inaugurated a $3m pilot plant in Minas Gerais state, Brazil for the magnetic concentration of low-grade ore without using water by using a technology called Fines Dry Magnetic Separation (FDMS). The technology was developed by iron ore beneficiation technology developer New Steel, which was acquired by the miner in late 2018 for a sum of $500m.

[grupo guitarlumber] 14/8/2020 09:35

Brazil’s Vale gets go ahead for $1.5bn Serra Sul 120 project

MiningOther CommoditiesIndustrial Minerals

By NS Energy Staff Writer 14 Aug 2020

The Serra Sul 120 project will increase the mine’s S11D mine-plant capacity by 20Mtpa
mining-excavator-1736293_640 (3)

Serra Sul 120 expansion project is slated for completion in 2024. (Credit: Khusen Rustamov/Pixabay)

Brazilian iron ore miner Vale has received board approval to move ahead with the Serra Sul 120 iron ore mine expansion project, with an estimated multiyear investment of $1.5bn.

Located in the municipality of Canaã dos Carajás, the Serra Sul 120 project aims to increase the mine’s S11D mine-plant capacity by 20 million tonnes per annum (Mtpa), bringing the total capacity to 120Mtpa at site.

The scope of the project includes the opening of new mining areas; the implementation of new processing lines at the plant, the duplication of the long-distance belt conveyor (TCLD), and the expansion of storage areas, among other measures.
Serra Sul 120 expansion project slated for completion in 2024

Scheduled for completion in the first half of 2024, the Serra Sul 120 is expected to increase Vale’s production capacity in Northern System to 260Mtpa.

In a press statement, Vale said: “The Serra Sul 120 Project will create an important buffer of productive capacity, ensuring greater operational flexibility to face eventual production or licensing restrictions in the Northern System.

“The investment to duplicate the existing TCLD, in the amount of US$ 385 million, in addition to providing flexibility, also aggregates important elements for the reduction of operational risks, adding reliability to the system.”

Vale said that the mine-plant capacity expansion and the development of additional logistics capacity mark important steps in maximising margin and flight-to-quality optimisation. It will also contribute to the growth of iron ore volume.

Recently, Vale reportedly announced plans for further expanding its Northern System mining complex and also restart mining at the Samarco complex in Brazil.

The company secured the preliminary license for the expansion of the Serra Leste mine in the Northern System, which is said to be the first stage in the licensing process.

[waldron] 22/6/2020 16:34

Vale, Sumitomo to sell 20% stake in Vale Indonesia to Inalum for $371m

MiningOther CommoditiesOthers

By NS Energy Staff Writer 22 Jun 2020

As part of the deal, Vale is selling a 14.9% stake in Vale Indonesia for IDR4.12bn ($290m), while Sumitomo Metal Mining is offloading the remaining 5.1% stake
open-pit-mining-1327116_640 (1)

Inalum to acquire 20% stake in Vale Indonesia. (Credit: S. Hermann & F. Richter from Pixabay)

Brazilian miner Vale and its Japanese partner Sumitomo Metal Mining are selling a stake of 20% in Vale Indonesia (PT Vale), a publicly-listed Indonesian copper ores company, to Indonesia Asahan Aluminium (Persero), also called Inalum, for IDR5.52bn ($371m).

The buyer Inalum is an Indonesian state-owned entity, which makes investments in the mining sector. Its association with the copper ores company is expected to significantly contribute to the continuous development and operational expansion of the latter’s businesses in the country.

Inalum was recently renamed as MIND ID.

As part of the deal, Vale is selling a 14.9% stake in Vale Indonesia for IDR4.12bn ($290m), while Sumitomo Metal Mining is offloading the remaining 5.1% stake.

Established in 1968, the Indonesian mining company produces nickel in matte from lateritic ores at its integrated mining and processing facilities located near Sorowako on the island of Sulawesi.
Why Vale and Sumitomo are reducing their stakes in Vale Indonesia

The deal has been taken up by the Brazilian mining company and Sumitomo Metal Mining in order to fulfill certain requirements to ensure that the Indonesian firm is entitled to have its license extended to continue operations beyond 2025.

In October 2014, the copper ores company signed an amendment to its 1996 Contract of Work with the Indonesian government, which will be expiring in December 2025.

After completion of the transaction, Vale will reduce its stake in the Indonesian mining company to 44.3%, while Sumitomo Metal Mining will bring down its stake to 15%. A stake of about 21.18% is held by public shareholders and others.

Vale stated: “Indonesia plays a major strategic role within the global nickel industry. This transaction represents an important development in PT Vale’s long presence in Indonesia and reinforces Vale’s commitment to keep investing in the region.”

The deal is expected to be closed by the end of 2020, subject to receipt of regulatory approvals.

[waldron] 09/6/2020 06:23

podgyted
8 Jun '20 - 22:49 - 3835 of 3835
0 1 0

[podgyted] 07/6/2020 14:05

BBC 3/6/20:-

"Brazil's industrial production plummeted by 18.8% in April from the month before the coronavirus outbreak.

Newly released official figures show it was also a 27.2% drop compared to the same time last year, the deepest decline since industrial production started being tracked by the Brazilian Institute of Geography and Statistics (IBGE) in 2002.

Lockdown measures hammered the country's economy in April, the IBGE says, calling the fall in production "historic".

Brazil is the epicentre of the virus in Latin America, with more than 31,000 deaths and the world's second-highest number of confirmed cases."

[waldron] 17/5/2020 06:59

Vale sets aside $2bn to cut a third of its carbon emissions by 2030

MiningIndustrial Minerals

By Andrew Fawthrop 14 May 2020

The Brazilian mining giant wants to cut 33% of its carbon output in the next decade, but the target doesn't include Scope 3 emissions
Vale S11D Project - vale agency

Vale says it will target net zero emissions by 2050 (Credit: Vale Agency)

Brazilian miner Vale will spend $2bn on a programme to cut its Scope 1 and 2 carbon emissions by 33% by 2030, as part of a longer-term plan to reach net zero by 2050.

It is the largest financial commitment from any mining firm to-date to address its carbon footprint as outside pressure mounts on companies to accelerate their decarbonisation plans in line with the Paris Agreement.

However, little mention was given to Scope 3 emissions – those resulting from the end-use of a company’s products and services which account for the vast proportion of greenhouse gases in the value chain – other than that it “aims to establish a goal to encourage clients and suppliers in the same direction”.


Investment in mine electrification will be key for Vale as it seeks to lower carbon emissions

Vale CEO Eduardo 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.̶1;

Measures planned by the strategy include rolling out the use of biofuels, the electrification of transport used in mining operations and more widespread use of renewable power sources.

Vale’s executive for institutional relations, Luiz Eduardo Osorio, added: “One of our goals is to achieve 100% of self-production of electric power from clean sources, such as wind and solar, in our plants around the world.”

By the end of the year, the miner expects several pilot projects to be in operation, including an electric train riding the Vitória-Minas railroad and electric vehicles being used at three sites in Canada.


Lack of clear Scope 3 targets limits impact of Vale’s commitment

Climate issues are rising up the corporate agendas of extractive firms with growing urgency, as concerned investors demand more decisive action to limit emissions and the pace of global warming.

Last week, a report from the Transition Pathway Initiative (TPI) – an investor-led programme controlling more than $18tn in assets that scrutinises companies preparedness for the low-carbon transition – revealed a “significant gap” between mining firms’ climate strategies and the goals of the Paris Agreement.

The report noted that, despite Vale’s stated climate ambitions, the fact that Scope 3 emissions are not included in its targets means the company is further away from alignment with the agreement in 2050 than it is today.

Vale is not alone, however, with TPI finding that just two of the world’s 10 largest mining companies – holding market capitalisation of $350bn and responsible for more than 1.5 billion tonnes of CO2 emissions annually – are currently aligned with limiting global warming to 2°C in line with the Paris climate targets.


Mining industry as a whole has work to do to become aligned with Paris Agreement goals

TPI co-chairman Adam Matthews said that while the mining industry has made “significant progress” in its environmental commitments in the past six months, more needs to be done.

“Our analysis shows that not all commitments cover all activities and companies will need to go significantly further to meet investor expectations from initiatives such as Climate Action 100+,” he added.

“Many assessed companies mine materials that both support the transition and those that do not. It is essential that investors have a complete picture of their carbon performance, which includes public targets for Scope 3 emissions.”

Yesterday (13 May), the world’s largest sovereign wealth fund – Norway’s $1tn Government Pension Fund Global – excluded mining giants Glencore and Anglo American from its investment portfolio for breaching its criteria on coal-related activities, and put BHP under observation.

The fund’s managers also excluded Vale for its involvement in two fatal tailings dam collapses in Brazil – the Samarco incident in 2015 and the Brumadinho disaster in 2019 – that killed hundreds of workers and caused significant damage to the local environment.