About Vale

Vale S.A. (Vale) operates as a metals and mining company worldwide. The company is a producer of iron ore and nickel. It also produces iron ore pellets and copper. The company’s nickel and copper concentrates contain by-products of platinum group metals (PGMs), gold, silver and cobalt. The company is engaged in greenfield mineral exploration in six countries. It operates large logistics systems in Brazil and other regions in the world, including railroads, maritime terminals and ports, which are integrated with its mining operations. In addition, the company has distribution centers to support the delivery of iron ore worldwide. Directly and through associates and joint ventures, it also has investments in the energy business. Iron Solutions The company’s iron solutions business includes iron ore mining and iron ore pellet production. The company conducts its iron ore business in Brazil primarily at the parent-company level. The company’s mines, all of which are open pit, and their related operations are mainly concentrated in three systems: the Southeastern, Southern and Northern Systems, each with its own transportation and shipping capabilities. The company operates three systems in Brazil for the production and distribution of iron ore: Northern System: Fully integrated system consisting of three mining complexes and one maritime terminal. Southeastern System: Fully integrated system consisting of three mines complexes, a railroad, a maritime terminal and a port. Southern System: Consisting of two mining complexes and two maritime terminals. Iron Ore Pellets: The company has eight operational pellet plants in Brazil, and two in Oman. Serra Norte The Serra Norte mining complex is a production stage property, part of the company’s Northern System, located in the municipality of Parauapebas, state of Pará, in the North region of Brazil. The property consists of five orebodies (N1, N2, N3, N4, and N5) and has the approximate coordinates 587,140E, 9,331,790N using the UTM SAD 69 (Universal Tranverse Mercator – South American Datum 1969) coordinate system. The property can be accessed via regular flights between the Carajás village and the cities of Marabá, Belem, Belo Horizonte, and Brasilia, as well as paved highways PA-275, PA-150, and PA-70. There is also a railroad linking Carajás with the Ponta da Madeira port, in the city of São Luis. The company has a mining concession for Serra Norte operations, under Brazilian national mining agency (Agência Nacional de Mineiração – ‘ANM’) Mineral Right number 813.682/1969, that covers an area of 30,000.00 ha, with no expiration date. This mining right is part of a group of permits referred to as ‘Grupamento Mineiro’ (number 852.145/1976), which includes mining concessions from the Carajás region, such as mining concessions of operations of Serra Sul and Serra Leste. Serra Sul Serra Sul mining complex is a production stage property, part of the company’s Northern System, located in the municipality of Canaã dos Carajás, state of Pará, North region of Brazil at coordinates 574,671 E, 9,291,735 N using the SAD69. The property consists of orebody S11, subdivided on A, B, C, and D. Production activities are in the S11D mine and the mineral reserves and mineral resources are defined only for the orebodies C and D. Access to the property is from Carajás airport towards Canaã dos Carajás via state roads PA-275 and PA-160, covering 83 km. Production ore is transported via railway of the southeast of Pará where it connects to the Carajás Railroad and the Ponta da Madeira port terminal in São Luís in the State of Maranhão. The company has a mining concession for Serra Sul operations, under ANM Mineral Right number 813.684/1969, that covers an area of 98,910.42 ha. This mining right is part of a group of permits referred to as ‘Grupamento Mineiro’ (number 852.145/1976), which includes mining concessions from the Carajás region, such as mining concessions of operations of Serra Norte and Serra Leste. In 2021, the company decided to relinquish its mineral rights in indigenous lands in Brazil. For this purpose, the company filed application for area reduction with respect to the mining right number 813.684/1969, reducing its area from 100,000.00 ha to 98,910.42 ha. This area reduction will become effective upon publication of ANM approval in the Official Gazette. Iron Ore Pellet Operations The company produces iron ore pellets in Brazil and Oman, directly and through joint ventures. The company’s total estimated nominal capacity is 57.7 million metric tons per year (Mtpy), including the full capacity of its pelletizing plants in Oman, its joint ventures and Tubarão, but not including the capacity of plants owned by its joint venture Samarco. Customers, Sales and Marketing The company supplies all of its iron ore and iron ore pellets to the steel industry. Prevailing and expected levels of demand for steel products affect demand for its iron ore and iron ore pellets. The company’s ten largest customers collectively purchased 130 million metric tons of iron ore and iron ore pellets from it, representing 43% of its 2022 iron ore and iron ore pellet sales volumes and 43% of its total iron ore and iron ore pellet revenues. Competition Asia: The company’s main competitors in the Asian market are located in Australia and include subsidiaries and affiliates of BHP Group Limited (BHP), Rio Tinto Ltd (Rio Tinto) and Fortescue Metals Group Ltd. Europe: The company’s main competitors in the European market are Luossavaara Kiirunavaara AB (LKAB); ArcelorMittal Mines Canada Inc.; Iron Ore Company of Canada, a subsidiary of Rio Tinto; Kumba Iron Ore Limited; and Societe Nationale Industrielle et Miniere. Brazil: With respect to pellets, the company’s major competitors are LKAB, Iron Ore Company of Canada, Ferrexpo Plc, ArcelorMittal Mines Canada Inc., Samarco Mineração S.A. (Samarco) and Bahrain Steel. Manganese The company has a manganese mining operation in Brazil operated by its parent company. This operation produces metallurgical ore, used primarily to produce manganese ferroalloys, a raw material used to produce carbon and stainless steel. In January 2022, the company sold its ferroalloys operations in Barbacena and Ouro Preto, in the state of Minas Gerais, to VDL. In 2020, the company shuts down its operations in Simões Filho, state of Bahia. In 2021, the company produced 71 thousand metric tons at the Barbacena and Ouro Preto operations, and in 2020 the company produced 73 thousand metric tons at the Barbacena, Ouro Preto and Simões Filho operations. Ports and Maritime Terminals Brazil The company operates ports and maritime terminals principally to complete the delivery of its iron ore and iron ore pellets to bulk carrier vessels serving the seaborne market. The company also uses its ports and terminals to handle customers’ cargo. Tubarão and Praia Mole Ports: The Tubarão port, which covers an area of 18 square kilometers, is in the Brazilian state of Espírito Santo and contains the iron ore maritime terminal and the general cargo terminals (Terminal de Graneis Líquidos and the Terminal de Produtos Diversos). The iron ore maritime terminal has two piers. From this terminal in the Tubarão port, the company exports mostly iron ore produced from its Southeastern System. The iron ore maritime terminal has a storage yard with a capacity of 2.9 million metric tons. In 2022, 61.5 million metric tons of iron ore and iron ore pellets were shipped through the terminal for the company. Pier I can accommodate two vessels at a time, one of up to 170,000 deadweight tonnage (DWT) on the southern side and one of up to 210,000 DWT on the northern side. In Pier I there are two ship loaders, which can load up to 13,500 metric tons per hour each. Pier II can accommodate one vessel of up to 405,000 DWT at a time, limited at 23 meters draft. In Pier II there are two ship loaders that work alternately and can each load up to 16,000 metric tons per hour continuously. The Terminal de Produtos Diversos handled 5.54 million metric tons of grains and fertilizers in 2022. VLI S.A. (VLI) has the right to purchase capacity of the Terminal de Produtos Diversos, upon agreement with the company on volume. The Terminal de Graneis Líquidos handled 0.71 million metric tons of fuel in 2022. VLI has the right to purchase capacity of the Terminal de Graneis Líquidos, upon agreement with the company on volume. The Praia Mole port is also located in the Brazilian state of Espírito Santo. The Praia Mole terminal is principally a coal terminal and handled 11 million metric tons of coal and other related cargo in 2022. VLI has the right to purchase capacity of the Praia Mole terminal, upon agreement with the company on volume. Ponta da Madeira Maritime Terminal: The company’s Ponta da Madeira maritime terminal is in the Brazilian state of Maranhão. Pier I can accommodate vessels of up to 420,000 DWT and has a maximum loading rate of 16,000 metric tons per hour. Pier III, which has two berths and three ship loaders, can accommodate vessels of up to 210,000 DWT at the south berth and 180,000 deadweight tonnage (DWT) at the north berth (or two vessels of 180,000 DWT simultaneously), subject to tide conditions, and has a maximum loading rate of 8,000 metric tons per hour in each shiploader. Pier IV (south berth) is able to accommodate vessels of up to 420,000 DWT and have two ship loaders that work alternately with a maximum loading rate of 16,000 metric tons per hour. In 2018, the company received from the Brazilian tax authorities, the customs authorization for the operations of Pier IV (north berth). Cargo shipped through the company’s Ponta da Madeira maritime terminal consists of the Northern System production of iron ore, pellets and manganese. Pier IV (north berth) is able to accommodate vessels of up to 420,000 DWT and have two ship loaders that work alternately with a maximum loading rate of 16,000 metric tons per hour. In 2022, 167.9 million metric tons of iron ore and pellets were shipped through the terminal. The Ponta da Madeira maritime terminal has a storage yard with a static capacity of 7.2 million metric tons. Itaguaí maritime terminal—Cia. Portuária Baía de Sepetiba (CPBS). From this terminal the company mostly exports iron ore from its Southern system. CPBS is a wholly owned subsidiary that operates the Itaguaí terminal, at the Itaguaí Port, in Sepetiba in the Brazilian state of Rio de Janeiro, which is leased from Companhia Docas do Rio de Janeiro (CDRJ) until 2026, with a proposal for an extension for more 25 years, under analysis by the Ministry of Ports and Airports, federal regulatory agency and Port Authority. The Itaguaí port terminal has a pier with one berth that allows the loading of ships up to 17.8 meters of draft and approximately 200,000 DWT of capacity. In 2021, the terminal loaded 16.3 million metric tons of iron ore. Guaíba Island maritime terminal. From this terminal the company exports mostly iron ore from its Southern system. The company operates a maritime terminal on Guaíba Island in the Sepetiba Bay, in the Brazilian state of Rio de Janeiro. The iron ore terminal has a pier with two berths that allows the loading of ships of up to 350,000 DWT. In 2022, the terminal loaded 27.9 million metric tons of iron ore. Oman Vale Oman Distribution Center LLC is part of the Oman Industrial Complex and operates a blending and distribution center in Liwa, Sultanate of Oman. The maritime terminal has a large deep-water jetty, a 600-meter long platform connected to the shore by means of a 700-meter long trestle and is integrated with a storage yard that has throughput capacity to handle 40 Mtpy of iron ore and iron ore pellets per year. The loading nominal capacity is 10,000 metric tons per hour and the nominal unloading capacity is 9,000 metric tons per hour. Malaysia Teluk Rubiah Maritime Terminal is in the Malaysian state of Perak and has a pier with two berths that allows the unloading of vessels of approximately 400,000 DWT of capacity and the loading of vessels up to 220,000 DWT of capacity. In 2022, the terminal unloaded 18.7 million metric tons of iron ore and loaded 18.3 million metric tons of iron ore. Shipping – Maritime Shipping of Iron Ore and Pellets In 2022, the company shipped approximately 256 million metric tons of iron ore and pellets in transactions in which it was responsible for transportation. The company ships a large amount of its iron ore products from Brazil to Asia through long-term contracts of affreightment with owners of very large ore carriers. The vessels employed under these contracts of affreightment reduce energy consumption and greenhouse emissions by carrying an increased amount of cargo in a single trip, reducing its carbon footprint and offering lower shipping costs. The majority of these vessels are efficient and modern Valemax (400,000 DWT) and Guaibamax (325,000 DWT) vessels, which transported approximately 140 million metric tons of iron ore products in 2022. Considering the IMO regulation that limits global Sulphur emissions to 0.5%, which became effective in January 2020, the company negotiated the fitting of scrubbers on the majority of the vessels employed under long-term contracts of affreightment. These scrubbers allow the company to continue bunkering high-sulphur fuel oil, while complying with the new regulation. Since 2021, 97% of the vessels employed under the company’s long-term contracts of affreightment were scrubber-fitted. Energy The company has developed its energy assets based on the current and projected energy needs of its operations, with the goal of reducing its energy costs, minimizing the risk of energy shortages and meeting its consumption needs through renewable sources. Energy management and efficient supply in Brazil are priorities for the company, given the uncertainties associated with changes in the regulatory environment and the risk of rising electricity prices. In 2022, the company’s installed capacity in Brazil was 2.1 GW, sourced mostly from directly or indirectly owned power plants. The company uses the electricity produced by these plants for its internal consumption needs. The company has a 50% direct stake at the hydroelectric plant of Candonga (140 MW), located in the Southeastern region. The company also has an 8% direct stake at the hydroelectric plant of Machadinho (1,140 MW), located in the Southern region and a 30% direct stake at the hydroelectric plant of Estreito (1,087 MW), located in the Northern region. Through its 55% participation in Aliança Geração de Energia S.A. (Aliança Geração), the company also has indirect stakes in the hydroelectric power plants of Igarapava (210 MW), Porto Estrela (112 MW), Funil (180 MW), Candonga (140 MW), Aimores (330 MW), Capim Branco I (240 MW), Capim Branco II (210 MW), located in the Southeastern Region and, additionally, the company has indirect stake in Santo Inácio (98,7 MW), a Wind Complex located in the Brazilian state of Ceará, which started operations in December 2017. In addition, in 2019, the company also approved the construction of two wind farms (Gravier and Acauã) in the Brazilian states of Ceará and Rio Grande do Norte, respectively, with a total of 180.6 MW of installed capacity. Gravier (71.4 MW) began operations in 2022, and Acauã (109.2 MW) is scheduled to start in the fourth quarter of 2023. Part of the electricity generated by Gravier and Acauã is or will be supplied to the company’s operations through power purchase agreements with Aliança Geração. The company also has a 4.59% indirect stake in Norte Energia S.A., through its 51% stake in Aliança Norte Energia, a joint venture with Cemig Geração e Transmissão S.A. Norte Energia S.A. is the company established to develop and operate the Belo Monte hydroelectric plant in the Brazilian state of Pará, which started operations in April 2016 and accomplished the start-up of the last of its 24 turbines in 2019. The company’s participation in the Belo Monte project gives it the right to purchase 9% of the electricity generated by the plant, which has already been contracted through a long-term power purchase agreement with Norte Energia S.A. With the intention of reaching 100% renewable electricity in Brazil by 2025 and increasing renewable energy sources, in November 2022, the company announced the operational start-up of the Sol do Cerrado solar project and ramp up is expected by July 2023. The solar plant contemplates a total installed capacity of 766 megawatts peak (MWp) in the municipality of Jaíba, in the state of Minas Gerais, Brazil. The company’s 100% solar generation also optimizes the generation profile of its portfolio, which is based on hydro generation. In addition, the company has entered into a long-term energy supply contract for 20 years, to be supplied by the Folha Larga Sul wind farm, a 151.2 MW project in Campo Formoso, Bahia, Brazil. Energy Transition Metals Nickel The company’s principal nickel operations are conducted through its wholly owned subsidiary Vale Canada Limited (Vale Canada), which has mines and processing plants in Canada and Indonesia, and controls and operates nickel refining facilities in the United Kingdom and Japan. The company also has nickel operations at Onça Puma, located in the Brazilian state of Pará. The company conducts its integrated nickel operations primarily through three regional production systems, such as the North Atlantic which includes Canada and the United Kingdom, the Asia-Pacific which includes Indonesia and Japan and the South Atlantic region in Brazil. The company’s North Atlantic region also produces Copper as a co-product, as well as cobalt and precious metals as by-products. Sudbury The Sudbury property is in the Greater City of Sudbury, which is approximately 330 km North–Northeast of the city of Toronto in the Province of Ontario, as illustrated below. The company’s Sudbury operations consist of: Production stage underground mines (Coleman, Copper Cliff, Creighton, Garson, Totten), a non-operating mine (Stobie), in addition to exploration stage and non-producing deposits (e.g., Victor and Copper Cliff Pit). Processing and refining capabilities are a combination of facilities in Sudbury (Clarabelle Mill, Copper Cliff Smelter and Nickel Refinery), Port Colborne Nickel Refinery, which is located in in Port Colborne, Ontario, about 160 km from Toronto, Ontario. Customers and sales The company’s nickel customers are broadly distributed on a global basis. In 2022, 45% of the company’s refined nickel sales were delivered to customers in Asia, 23% in Europe, 30% in North America and 2% in other markets. The company has short-term fixed-volume contracts with customers for most of its expected annual nickel sales. These contracts generally provide stable demand for a significant portion of its annual production. The company also has multiple long-term agreements to sell its Class I nickel, including into the North Atlantic electric vehicle market. In 2022, 84% of the company’s refined nickel sales were made into non-stainless-steel applications, compared to the industry average for nickel producers of 36%. The company offers sales and technical support to its customers on a global basis through an established marketing network headquartered at its head office in Toronto (Canada). The company has a well-established global marketing network for finished nickel with sales and technical support distributed around the world with presence in Singapore and Toronto (Canada) and have sales managers located in St. Prex (Switzerland), Paramus, New Jersey (the United States) and at several locations throughout Asia. Copper In Brazil, the company produces copper concentrates at Sossego and Salobo operations, in Carajás, in the state of Pará. In Canada, the company produces copper concentrates and copper cathodes in conjunction with its nickel mining operations at Sudbury (Ontario), Voisey’s Bay (Labrador) and Thompson (Manitoba). The company conducts its copper operations primarily through Vale S.A. (parent company) and its wholly owned subsidiary Salobo Metais S.A. in Brazil, and through its subsidiary Vale Canada in Canada. The copper concentrate produced by the South Atlantic contains gold and silver. The company considers Salobo to be a material property, for purposes of S-K 1300. Salobo operations constitute a production stage property situated in the Carajás Mining District, Pará State, Brazil, 90 km northwest of the city of Parauapebas. Salobo operations are owned by Salobo Metais S.A., its wholly owned subsidiary. Customers and Sales From the company’s South Atlantic operations, it sells most of its copper concentrates from Sossego and Salobo under medium- and long-term contracts to copper smelters in Europe and Asia. From its North Atlantic operations, the company sells copper concentrates and copper matte produced in Sudbury domestically and to smelters in Europe and Asia under long-term contracts, as well as copper concentrates from Voisey's Bay under medium term contracts. Also, from its North Atlantic operations, the company sells copper cathodes from Sudbury and Long Harbour under short-term contracts. PGMs and Other Precious Metals Ore mined at the company’s Sudbury nickel operations also yields cobalt, PGMs, silver and gold as by-products, processed at its refining facilities in Port Colborne, Ontario. In Canada, the company also produces refined cobalt at its Long Harbour facilities in Newfoundland and Labrador. The company receives silver and gold as by-product credits from its copper operations at Salobo in Brazil. As by-products of its Sudbury nickel operations in Canada, the company recovers significant quantities of PGMs, as well as small quantities of gold and silver. The company operates a processing facility in Port Colborne, Ontario, which produces PGMs, gold and silver intermediate products using feed from its Sudbury operation. PGM concentrates, gold and silver intermediates from the company’s Port Colborne operation are being sold to third parties. The company’s copper concentrates from its Salobo and Sossego mines in Carajás, in the Brazilian state of Pará, also contain gold, the value of which it realizes in the sale of those products. The company has sold to Wheaton Precious Metals Corp. (Wheaton) an aggregate of 75% of the by-product gold contained in concentrate from its Salobo copper mine, in Brazil, for the life of mine, and 70% of the by-product gold from its Sudbury nickel mines, in Canada, for 20 years. Cobalt The company recovers significant quantities of cobalt as a by-product of its nickel operations. In 2022, the company produced 909 metric tons of refined cobalt metal (in the form of cobalt rounds) at its Port Colborne refinery, 1,525 metric tons of cobalt rounds at its Long Harbour refinery. The company sells cobalt on a global basis. The cobalt metal and the Long Harbour cobalt rounds are electrorefined at the company’s Port Colborne refinery and have very high purity levels (99.8%), meeting the LME contract specification. Cobalt metal is used in the production of various alloys, particularly for aerospace applications, and in the manufacturing of cobalt-based chemicals primarily for use in rechargeable batteries. In June 2018, the company sold to Wheaton and Cobalt 27 Capital Corp. (Cobalt 27) a combined 75% of the cobalt produced as a by-product at its Voisey’s Bay mine from January 1, 2021, which includes the ramp down of production from the existing mine and the life of mine production from its underground mine expansion project. The company remains exposed to approximately 40% of future cobalt production from Voisey’s Bay, through its retained interest in 25% of cobalt production and the additional payments upon delivery. Logistics and Energy Assets to Support Energy Transition Metals Operations Ports Canada Vale Newfoundland & Labrador Limited operates a port as part of the company’s mining operation at Voisey’s Bay, Labrador and a port as part of its processing operation at Long Harbour, Newfoundland. The port at Voisey’s Bay is used for shipping nickel and copper concentrates and re-supply. The port at Long Harbour is used to receive nickel concentrate from Voisey’s Bay along with goods and materials required for the Long Harbour operation. Indonesia PTVI owns and operates two ports in Indonesia to support its nickel mining activities. The Balantang Special Port is located in Balantang Village, South Sulawesi, and has two types of piers, two barge slips for barges with capacity of up to 5,000 DWT each for dry bulk cargo, and a general cargo wharf for vessels of up to 2,000 DWT. The Tanjung Mangkasa Special Port is in Lampia Village, South Sulawesi, with mooring buoys that can accommodate fuel tankers with capacity of up to 20,000 DWT, and a jetty terminal that can accommodate fuel tanker vessels with capacity of up to 5,000 DWT. Energy Canada In 2022, the company’s wholly owned and operated hydroelectric power plants in Sudbury generated 13.7% of the electricity requirements of its Sudbury operations. The power plants consist of five separate generation stations High Falls I and II, Big Eddy, Wabageshik and Nairn with an installed generator nameplate capacity of 55 MW. The output of the plants is limited by water availability, as well as by constraints imposed by a water management plan regulated by the provincial government of Ontario. Over the course of 2022, average demand for electrical energy was 161.45 MW to all surface plants and mines in the Sudbury area. In 2022, diesel generation provided 100% of the electric requirements of the company’s Voisey’s Bay operations. The company has six diesel generators onsite, with output ranging from 12 to 14 MW, in order to meet seasonal demands. Indonesia A major portion of PTVI’s electric furnace power requirements is supplied by its three hydroelectric power plants on the Larona River: The Larona plant, which has an average generating capacity of 165 MW; the Balambano plant, which has an average capacity of 110 MW; and the Karebbe plant, with 90 MW of average generating capacity. Other Investments Samarco Mineração S.A. The company has a 50% equity interest in Samarco, and BHP Billiton Brasil Ltda. (BHP Brasil) owns the remaining 50%. Samarco owns an integrated system consisted of two different pits, three beneficiation plants, three pipelines, four pellet plants and a port. The mines and the beneficiation plants are in the state of Minas Gerais and the pellet plants and port are located in the state of Espírito Santo. From Minas Gerais to Espírito Santo, the production flows through the three pipelines which extend for approximately 400 Km. Samarco’s mining and pelletizing operations have been gradually resuming since December 2020. Mineração Rio do Norte S.A. Bauxite: The company owns a 40% equity interest in Mineração Rio do Norte S.A. (MRN), a bauxite mining business located in Brazil. Below is a list of the company’s main other investments: VLI: VLI provides integrated logistics solutions through 7,940 kilometers of railroads in Brazil (FCA and FNS), eight inland terminals with a total storage capacity of 795,000 metric tons and three maritime terminals and ports operations. The company holds a 29.6% stake in VLI and is party to a shareholders’ agreement with FI-FGTS, Mitsui, Brookfield and BNDESPar, which hold the remaining equity interests in VLI. In 2022, VLI transported a total of 41.8 billion ntk of general cargo, including 30.8 billion ntk from FCA and FNS and 11 billion ntk through operational agreements with the company. VLI’s main assets are: Ferrovia Centro-Atlântica S.A. (FCA): Central-east regional railway network of the Brazilian national railway system, held under a 30-year renewable concession, which expires in 2026. The central east network has 7,220 kilometers of track, extending into the states of Sergipe, Bahia, Espírito Santo, Minas Gerais, Rio de Janeiro, Goiás and the Federal District of Brazil. Ferrovia Norte-Sul S.A. (FNS): A 30-year renewable sub concession for the commercial operation of a 720-kilometer stretch of the North-South railroad in Brazil, between the cities Açailandia, in the Brazilian state of Maranhão, and Porto Nacional, in the Brazilian state of Tocantins. This railway is connected to EFC railroad, and creates a new corridor for the transportation of general cargo, mainly for the export of soybeans, rice and corn produced in the center-northern region of Brazil. Right to purchase capacity of the company’s Vitória-Minas Railroad (EFVM) and Estrada de Ferro Carajás (EFC) railroads for general cargo. Right to purchase capacity of the company’s Tubarão and Praia Mole terminals for general cargo. MRS Logística S.A. (MRS): The MRS railroad, in which the company holds a 48.16% direct and indirect equity interest, is 1,643 kilometers long and links the Brazilian states of Rio de Janeiro, São Paulo and Minas Gerais. The MRS railroad transports the company’s iron ore products from the Southern System mines to its maritime terminals. In 2022, it transported a daily average of 291,9 thousand metric tons of iron ore and 196,5 thousand metric tons of other cargo. Strategy A key aspect of the company’s strategy for the nickel business is retaining its product leadership position supplying nickel for the global renewable energy transition, while striving to be a sustainable operator and a global benchmark for health and safety in the industry and in the communities where it operates. Focus on High-quality Products: The company’s strategy consists of securing and developing high-grade ore feed and seeking to be among the nickel and copper producers with the lowest carbon emissions. Iron Solutions: The company’s plan is to lead the development of zero- and low-carbon emission solutions for ironmaking through a customer-centric approach, fast product development and customized business models, including by: Developing and guaranteeing iron ore concentration solutions; optimizing product portfolio with higher-grade products; and fostering metallics hubs initiatives with partners, offering high quality agglomerates. Energy Transition Metals: The company’s plan is to debottleneck the supply of sustainable energy transition metals through an agile project development and flexible approach to adapt to evolving technologies, including by: Expanding copper production to approximately 900 ktpy after 2030; being the preferred nickel supplier to the electric vehicle industry, with 30% to 40% of its Class I nickel supplied to the electric vehicle market; accelerating growth through its energy transition operations by seeking partnerships; and pursuing selective inorganic growth. Circular Mining: The company expects to help solving mining’s huge waste generation issue by leading the promotion of new technologies and selectively engaging in circular economy, including by: Leveraging concentration technologies to reprocess iron ore tailing; leading supplier of energy transition metals from slag, ponds, recycled e-waste and battery raw materials; and developing competitive outbound logistics. Government Regulations The company is subject to health, safety and environmental regulation by the International Maritime Organization (IMO). The company is compliant with the requirements of the EU REACH regulations. The company’s Brazilian railroad business operates pursuant to concession agreements granted by the federal government, and its railroad concessions are subject to regulation and supervision by the Brazilian Ministry of Roads and Railroads and the Brazilian Land Transportation Regulatory agency (Agência Nacional de Transportes Terrestres – ‘ANTT’). Research and Development The company’s research and development expenses were US$660 million in 2022. Divestments On March 9, 2023, the company and its joint venture partners concluded the sale of its entire equity interests in Companhia Siderúrgica do Pecem (CSP) to Arcelor-Mittal Brasil S.A. (Arcelor-Mittal). In July 2022, the company concluded the sale of all the shares issued by Mineração Corumbaense Reunida S.A., Mineração Mato Grosso S.A., International Iron Company, Inc. and Transbarge Navegación Sociedad Anónima, which hold its iron ore, manganese ore and logistics assets in the Midwestern System, to J&F Mineração Ltda. (J&F). In July 2022, the company sold its 25% indirect stake in Korea Nickel Corporation, which operates a nickel refinery in South Korea, through a treasury stock repurchase transaction. Korea Nickel Corporation used to produce finished nickel for the stainless-steel industry operations using intermediate products from Vale Nouvelle-Caledonie S.A.S. (VNC), but that ceased in 2021 in connection with the sale of its investment held in VNC. In April 2022, the company concluded the sale of its coal operations, consisting of Moatize mine and the Nacala Logistics Corridor (NLC) to Vulcan Resources. In February 2022, the company sold its 50% ownership interest in CSI to Nucor Corporation (Nucor). In January 2022, the company sold its ferroalloys operations in Barbacena and Ouro Preto and its manganese mining operations at Morro da Mina, in the state of Minas Gerais, to VDL Group (VDL). In 2022, the company concluded the sale of the small hydroelectric plants of Glória and Nova Maurício, both located in Minas Gerais. In August 2022, the company sold all of its shares in Vale Nickel Dalian Co., Ltd. to Dalian Xingbo Mechanical Co., Ltd. History The company was founded in 1942. It was formerly known as Companhia Vale do Rio Doce and changed its name to Vale S.A. in 2009.