en.Wedoany.com Reported - Brazilian mining company Vale S.A. released its annual sustainability report on June 15, 2026, announcing plans to invest up to 13 billion Brazilian reais (approximately $2.56 billion) in decarbonization projects to achieve voluntary emission reduction targets and mitigate climate-related risks. Vale is one of the world's largest iron ore producers, headquartered in Rio de Janeiro, Brazil, with iron ore production reaching 323 million tons in 2025.
According to Vale's disclosure, the investment plan covers multiple areas including operational decarbonization, low-carbon technology research and development, and supply chain emission reduction. Of this, up to 4 billion reais will be directly allocated to operational decarbonization, with 24% directed toward medium-term projects and 76% toward long-term plans. Between 2020 and 2025, Vale had already invested a cumulative 9 billion reais in decarbonization-related projects. The company did not specify a concrete timeline for this 13 billion reais investment.
At the project level, Vale is advancing the implementation of multiple low-carbon technologies. The company plans to build a 1.5 GW solar power plant at the Carajás mining complex in Pará state, while piloting electric mining trucks and biofuel alternatives at the Brucutu and Itabira mines in Minas Gerais state. In iron ore pellet production, the company is gradually replacing anthracite coal with biomass, with trial results showing a reduction in greenhouse gas emissions of approximately 35%.
Vale's Chief Sustainability Officer, Emilio Moretti, stated that the company is committed to reducing Scope 1 and Scope 2 carbon emissions by 33% by 2030 and achieving net-zero emissions by 2050. He noted that Vale's decarbonization strategy not only focuses on its own operations but also encompasses collaborative emission reductions with customers and suppliers, including the development of low-carbon steelmaking solutions. Vale expects its low-carbon iron ore products, such as "green briquettes," to account for 15% to 20% of the company's total iron ore production by 2030.
Vale's CEO, Gustavo Pimenta, stated in the report that decarbonization investments are a core component of the company's long-term competitiveness. He emphasized that the global steel industry is facing pressure for low-carbon transformation, and as an upstream raw material supplier, Vale has a responsibility to provide low-emission solutions to support customers in achieving their emission reduction targets. Vale's decarbonization plan aligns with Brazil's national "green growth" policy direction, as the Brazilian government has in recent years encouraged companies to invest in low-carbon technologies through policy tools such as tax incentives and low-interest loans.
The announcement of this 13 billion reais investment plan marks a significant step for Vale on the path to low-carbon transformation, with far-reaching implications for the greening of the global iron ore supply chain.
