Where Brazil’s Vale is placing its tech bets

Decarbonization, tailings dams refitting, safety, mining efficiency and cost reduction in the industry’s extended value chain stand out as the core focuses of Brazilian mining giant Vale’s digital and technology initiatives.

The company’s strategy for these investments varies from established contracts and partnerships with major industry players, such as Telefônica, Nokia, Siemens and Schneider Electric, to recently acquiring direct equity stakes in startups via venture capital.

In 2023, the Vale Ventures vehicle invested 95mn reais (US$19mn) in acquiring minority stakes in startups, according to company filings.

“The company's objective is to acquire minority stakes in startups that are focused on decarbonization initiatives within the mining value chain, zero waste mining, energy transition metals and other technologies,” says Vale.

Last year’s investments included the biology startup Allonia and the Boston Electrometallurgical Company, whose goal is to develop technology focused on steel decarbonization.

Also in 2023, Vale Ventures allotted another 13mn reais for venture capital funds, represented by Evok Fund II Limited Partnership and Cathay Innovation Global Fund III.

Vale Ventures was created in June 2022 with the initial goal of investing around 490mn reais in sustainable mining initiatives.

Vale is a member of the global Mining Hub initiative, which brings together 24 mining companies, 700 startups and 15 large suppliers in 22 countries.

The hub is said to have carried out 90 proofs of concept and concluded 20 contracts between mining companies and startups.

DAM MANAGEMENT

The miner, one of the world’s largest iron ore producers, is also leveraging technologies that can help it repurpose many of its tailings dams, involving risk-reduction and control solutions.

Following the disasters in Mariana and Brumadinho, and pressured by governments, court rulings and shareholders, Vale deactivated many of its tailings dams.

“We intend to become a zero-fatality company by improving safety and damage management, through standards and processes for health, safety, environment and operational risks, prioritizing risk-reduction technology, improving controls and fostering innovation,” says Vale.

Vale’s upstream dam decommissioning program involves 30 structures, with 13 of them closed between 2019 and 2023.

SUSTAINABLE MINING

Another key focus for the company is to develop low carbon solutions, mainly through technological innovation and “circular mining” processes.

The company has an artificial intelligence center that monitors the safety and sustainability of its operations.

All its main decisions are supported by artificial intelligence systems, Vale claims. The company said it has sought to rely on the center to involve fewer people in risky activities, as well as to gain agility and improve productivity.

The iron ore giant has since 2019 a contract with Telefônica Brasil and Nokia for the installation of dedicated 4G networks, with the potential to upgrade to 5G at some of its main sites.

The connectivity project lays the groundwork for the automation of Vale's operations and the use of autonomous vehicles, among other initiatives.

“The Vale project in particular is very complex, possibly one of the largest in the world because it involves mines, ports and railways. There are three chains in one,” Márcio Nicolay, head of Nokia Enterprise Verticals, told BNamericas last year.

Last year, the company opened a management excellence center in Belém, Pará state’s capital, including the operation of remote equipment and the monitoring of its telecommunications network.

Most of Vale’s private network-driven autonomous vehicles are concentrated in Pará state’s Carajás.

The Belém center relies on IBM consultancy and technology for the implementation of BPO with artificial intelligence, hypertechnology and automation, all based on IBM Cloud.

Vale operates over 20 autonomous machines at its Carajás complex, including 14 trucks and six drills, using 4G. It also has another 13 trucks and 13 drills at its Sudeste system, comprising the operations in Mariana, Itabira and Minas Centrais in Minas Gerais state.

INTERNAL DEVELOPMENT AND LICENSING

The mining company's internal development occurs mainly within the scope of the Vale Technological Institute (ITV). The unit is focused on R&D and science and technology for mining.

The company also offers the market the licensing of some the solutions created at ITV.

These include flexible shoes, drill rods, vehicles for depositing explosives, devices for loading bulk carriers, robotic devices for inspecting belt conveyors and devices for online measurement of magnetic fields in iron ore plants, among others.

INVESTMENTS

Vale invested US$5.92bn in 2023, up from US$5.45bn the year before, and US$2.12bn in Q4, up from US$1.79bn year-on-year, according to the company’s latest financial report.

Of the Q4 total, investments in sustaining operations were US$1.64bn. Of these, US$664mn went to energy transition materials, including capex for dam management, technology and innovation, mine equipment and mining fleet.