Vale SA

Vale SA is a senior iron and nickel producer headquartered in Rio de Janeiro, Brazil, operating primarily in Brazil. The company's portfolio consists of 14 projects, comprising 13 operating mines and 1 exploration project, in addition to several early-stage exploration prospects. Key assets include Carajás Complex, Salobo, and Sudbury. The business model is centered on an integrated value chain supported by proprietary logistics systems, including railroads and maritime terminals, to facilitate global product distribution. A core operational characteristic is the development of client-oriented solutions, such as industrial complexes known as Mega Hubs, designed to provide low-carbon products for industrial processes. The organization emphasizes a circular economy approach through its Waste to Value program, which recovers materials from operational waste streams to reintroduce into the production cycle, enhancing efficiency and reducing environmental liabilities. Technological integration is a key differentiator, with artificial intelligence and video analytics deployed to optimize asset maintenance, manage processing plants, and improve operational controls. This approach supports a flexible product mix adaptable to various market scenarios, positioning the enterprise to meet demand for high-quality inputs essential for the energy transition. The operational framework is designed to integrate production with innovation and environmental responsibility, creating a resilient and competitive portfolio.

Strategic direction is guided by the 'Vale 2030 Vision,' which aims to position the organization as a trusted partner with a superior portfolio and a results-oriented culture. This strategy is built on three pillars: developing a high-quality and flexible portfolio, promoting a performance-driven culture, and ensuring greater trust through transparency and positive societal impact. A central element of the operational strategy is the Vale Production System (VPS), a management model focused on protecting life, ensuring safety, and driving operational excellence and innovation. Long-term ambitions include becoming a benchmark in safety, a best-in-class reliable operator, and a leader in sustainable mining. Capital allocation for decarbonization is prioritized using a Marginal Abatement Cost Curve (MACC), a tool that informs investment decisions by evaluating the cost-benefit ratio of various emission reduction projects. The enterprise also conducts strategic reviews of its assets as part of a global optimization process to enhance competitiveness and value creation.

Executive leadership transitioned in 2024 with the appointment of Gustavo Pimenta as CEO, who previously served as the Executive Vice President of Finance. The succession process was conducted by the Board of Directors with support from an international recruitment firm. The Board is composed of 13 members, of whom 8 are independent, and includes 1 effective member and 1 alternate elected by employees. The roles of CEO and Chairman of the Board are separate. Governance is structured around 5 permanent statutory advisory committees: Capital Allocation and Projects; Audit and Risks; Nomination and Governance; People and Remuneration; and Sustainability. The company operates as a publicly traded corporation with broad ownership and no controlling shareholder. Executive compensation is directly linked to performance on environmental, social, and governance metrics, which constitute 25% of the long-term incentive plan. This linkage aligns management's focus with strategic goals related to health and safety, climate change, and achieving top-tier external ESG evaluations.

The sustainability framework is defined by long-term, quantifiable commitments across multiple domains. Climate action targets include a 33% reduction in absolute Scope 1 and 2 greenhouse gas emissions by 2030 from a 2017 baseline and a 15% reduction in net Scope 3 emissions by 2035 from a 2018 baseline. A key environmental initiative is the Forest Goal, which aims to voluntarily protect and restore 500,000 hectares of land by 2030, with 218,536 hectares completed by year-end 2024. The organization is committed to a dam decharacterization program, having eliminated 57% of its 30 upstream structures since 2019, with a goal of having no dams at the highest emergency level by 2025. Social ambition includes a commitment to help 500,000 people exit extreme poverty by 2030, with initiatives engaging 51,000 individuals in 2024. The company also supports all neighboring Indigenous communities in developing plans to uphold rights outlined in the United Nations Declaration on the Rights of Indigenous Peoples, completing a formal Consultation Protocol with one community in 2024.

In 2024, the company completed the sale of a 10% stake in its base metals unit, Vale Base Metals (VBM), to Manara Minerals, a joint venture between Ma’aden and the Saudi Arabian Public Investment Fund, to accelerate growth in the energy transition metals sector. The same year, it formed a joint venture for the Vale Oman Distribution Center (VODC) by completing the sale of a 50% interest to AP Oryx Holdings LLC (Apollo), enhancing operational flexibility. A subsidiary, Vale Canada Limited (VCL), finalized the sale of a portion of its holding in PT Vale Indonesia Tbk (PTVI) to PT Mineral Industri Indonesia (MIND ID). The organization also acquired the remaining 45% stake in its power generation subsidiary, Aliança Geração de Energia, from Cemig GT, achieving full ownership. Strategic partnerships were advanced, including an agreement with Anglo American to access high-quality feed and a renewed technical cooperation with Midrex Technologies Inc. to explore the use of specific products in direct reduction plants. An agreement was also signed with Hydnum Steel to jointly assess the development of a new plant for low-carbon solutions.