Vale signs a memorandum of understanding with Ternium to develop steelmaking plans to reduce carbon dioxide emissions

Vale has signed a memorandum of understanding with Ternium, under which the two sides agreed to explore opportunities to develop steelmaking solutions focused on reducing carbon dioxide emissions.

Vale and Ternium plan to conduct economic feasibility studies on the following potential investments: (1) an iron ore briquetting plant at Ternium Brazil; and (2) several plants that apply Tecnored, HYL and other iron reduction technologies to produce low-carbon footprint metal charge products.

The move will help Vale meet its commitment to reduce net emissions from scope III by 15 per cent by 2035. Vale also pledged to reduce absolute emissions of scope one and range two by 33 per cent by 2030 and to be carbon neutral by 2050. These commitments are in line with the Paris Agreement and will lead the development process of low-carbon mining.

Mr. (Eduardo Bartolomeo), CEO of Vale, and Mr. Maximo Vedoya, CEO of Ternium, attended the signing ceremony of the MOU on August 18, 2021 local time. In his speech, Mr. Boandor said, "this is an important milestone in our roadmap to provide low-carbon solutions for the steel industry, and we are pleased to work with Ternium. We are fulfilling our commitment to society and to the goals of the Paris Agreement with innovative technologies critical to low-carbon transformation and a world-class portfolio of high-quality iron ore products. By working with customers to provide support for decarbonization in the iron and steel industry, we have the ability to lead the "scope 3" emission reduction process.

Mr. Maximo Wedoa, CEO of Ternium, said: "this is an important step towards achieving our decarbonization strategy and will help Ternium achieve its commitment to reduce carbon dioxide emissions by 20% by 2030. Vale is a key supplier in our value chain and is as committed to environmental protection as we are. I believe that we have many opportunities to cooperate and continue to promote the decarbonization process in future operations. Carbon neutralization is a goal that can only be achieved with the concerted efforts of all sectors of society. As a leading steel sheet supplier in Latin America, we will contribute to achieving the goal of carbon neutralization. "