Vale Investor Day Presentation Deck
A world requiring green materials
Leading to solid premiums in long term
Premium for 1% Fe additional¹
US$/dmt
CO₂ emissions per ton of steel²
1.9
4,1
BF3
(w/o carbon
price)
1.9
4,9
0.6
BF3
(w/ carbon
price)
6,6
0.87
8,8
Low Fe
HB14 (w/
natural gas)
in melter (w/
biocarbon)
With carbon price@US$50/t and without CCS6.
HB14 (w/
natural gas) in
EAF5
Average Fe content
% Fe
63,6
Vale
60,8
Peer 1
60,4
Peer 2
Future
2020
57.8
Peer 3
Source: Vale's estimates.
¹ Technical VIU simulation for different routes. Additional premium paid per percentage of Fe on top of 62% Fe index (including Fe and slag effect), assuming iron ore prices @ US$75/t, coke prices @ US$ 280/t, carbon price
@US$50/t, natural gas price@US$6/MMbtu, biocarbon price@US$250/t and steel margins@ US$50/t. 2 Including scope 1 emissions. 3 Blast furnace. 4 Hot Briquetted Iron. Considering an iron ore input for low Fe
HBI of 63-64% Fe and > 66% Fe for HBI. 5 Electric arc furnace. 6 Carbon capture and storage 7 Including scope 2, emissions may increase to 1.2-1.4 t of CO₂ per ton of steel, depending on electric energy source.
VALE
со
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