Vale Investor Day Presentation Deck
A world requiring green materials
Technological shift faces three challenges
●
High investment required
US$ 1-2 trillion
to be compliant
with CO₂ emission
requirements
Aging plants need to be revamped;
Uncertainties related to technology
success increase investment risks.
Source: Vale's estimates.
1 Assumptions: Biochar@ $250/ton; Electricity@$30/MWh; CCS @ $60/ton.CO2
Higher fuel costs
Fuel cost¹ (US$/t coal eq.)
Coal NG2 w/ Biocarbon
CCS3
Blue Green
hydrogen hydrogren
"Greener" reductant costs are higher than
coal costs;
• Biocarbon and natural gas can accelerate
transition while developing hydrogen
industry.
2 Natural gas.
3 Carbon capture and storage.
High-quality ore supply
Seaborne iron ore supply by Fe
content (%)
21%
>66%
-3%
51%
25%
2020
66-64%
3%
27%
56%
14%
2030
64% -60%
<60%
Steelmaking needs high quality products
to minimize reductant costs and increase
productivity;
Main ore bodies available face depletion
and beneficiation challenges, thus
making it difficult to increase supply of
high-grade ores.
LO
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