Vale and Xugong Machinery sign Memorandum of Cooperation on potential supply of equipment

Vale announced today that it has signed a memorandum of cooperation with Xugong Group Construction Machinery Co., Ltd., China's largest machinery manufacturer, on the potential supply of mining and infrastructure equipment, including zero emission equipment and self-driving equipment. According to the memorandum of cooperation, prototype equipment, including two 72-ton zero-emission battery-powered mining trucks, will be delivered in the first half of 2022 and tested by Vale in its operations in the Brazilian state of Minas Gerais and Indonesia. Another 240-ton zero-emission electric mining truck will also be tested on the agreed date.

The signing ceremony was held in Nanjing on Tuesday, October 26, as part of the celebration of the 25th anniversary of the marriage between the Brazilian state of Minas Gerais and China's Jiangsu Province.

The memorandum of cooperation between Vale and Xugong was jointly signed by Mr. Le Sizhe, Consul General of Brazil in Shanghai, Mr. Hui Jianlin, Vice Governor of Jiangsu Province, Ms. Xie Xue, President of Vale China, and Mr. Liu Jiansen, Vice President of Xugong Machinery. Mr. an Kai, purchasing director of Vale China, and Mr. Shang Bao, deputy general manager of Xuzhou Construction Machinery Group Import and Export Co., Ltd.

After the signing ceremony, Mr. Alexander Pereira, Executive Vice President of Vale Global Business Solutions, congratulated on the cooperation. He stressed that both Vale and Xugong are committed to promoting the use of electric trucks, and the memorandum of cooperation signed this time reflects the willingness of both sides to supply and demand battery-powered mining trucks.

"the cooperation with Xugong is in line with Vale's goal of reducing absolute emissions of 'range 1' and 'range 2' by 33% by 2030 and achieving net zero emissions by 2050. We believe that this cooperation will also further deepen the long-term win-win partnership between Vale and China, which began in 1973, when Vale shipped its first shipment of iron ore to China. " Mr. Pereira said.

Mr. Simasheng (Marcello Spinelli), Executive Vice President of Vale's iron ore business, added: "this is another case of our efforts to achieve net zero emissions. We will receive the first 72-ton battery-powered mining truck in 2022 and test it in the operating area. We are willing to work with global partners, including Xugong, to continue to develop solutions for net zero emissions. "

Xugong is honored to deepen its partnership with Vale. Xugong is committed to serving customers around the world by providing energy-efficient building construction and mining solutions. We will increase our investment in research and development of zero-emission technology to help customers achieve their green mining goals. We believe that the signing of the MOU with Vale will make our value chain more environmentally friendly. " Mr. Liu Jiansen said.