Vale and Liuzhou Iron and Steel Group sign Memorandum of understanding on developing steelmaking decarbonization solution

Shanghai, China, 13 January 2022-Vale has signed a memorandum of understanding with Guangxi Liuzhou Iron and Steel Group Co., Ltd. ("Liuzhou Iron and Steel Group"). The two sides agreed to explore opportunities to develop steelmaking solutions focused on reducing greenhouse gas emissions.

Vale and Liugang Group plan to jointly study and explore the possibility and feasibility of cooperation on the following issues: (1) Liugang Group builds a metal charging plant in Southeast Asia, and Vale supplies high-grade iron ore products to it; (2) Liugang Group uses Tecnored technology to deal with the residues produced in the iron and steel production process; (3) to build mineral processing and grinding facilities to produce high-grade pellet fine powder in Chinese ports or in the plant of Liuzhou Iron and Steel Group.

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 "scope two" by 33 per cent by 2030 and to achieve net zero emissions by 2050. These commitments are in line with the Paris Agreement and will lead the development process of sustainable mining.

About Liugang Group

Guangxi Liuzhou Iron and Steel Group Co., Ltd. (referred to as "Liuzhou Iron and Steel Group") is located in the golden location of China's Pan-Pearl River Delta, the Great Southwest and the ASEAN economic circle. it is a super large iron and steel joint enterprise in South China, Southwest China and even the Pan-Beibu Gulf Economic Circle. Liuzhou Iron and Steel Group has constructed a "one body and two wings" iron and steel development map with Liuzhou headquarters as the center, Fangchenggang Iron and Steel Base and Yulin Zhongjin stainless Steel Base as two wings. The top 50 steel enterprises in the world and the top 500 Chinese enterprises have 30000 employees of Liugang Group, with total assets and annual operating income exceeding 120 billion yuan.