Marta Nogueira

RIO DE JANEIRO, (Reuters) – After the two devastating dam collapses, Vale SA (NYSE 🙂 was made a pariah by the global green movement. Brazil’s biggest mining company, Eduardo Bartolomeo, said that the company is now trying to make the environment and climate a core part of their business.

Bartolomeo, speaking in an interview at the Reuters Impact conference, said the disasters – which killed nearly 300 people and caused huge environmental damage in Brazil – were a wake up call that forced the company to think differently.

I think everyone woke up. It was the tragic events and incidents that forced us to open our eyes. “It’s the driving force behind everything that we do at Vale, and it’s also a driving factor for industry,” he stated.

Bartolomeo says that the safety improvements helped Vale to reevaluate their wider roles.

He stated, “We must give back to society. We are a mining firm, and we extract natural resources. If we share the value of society, then we will be accepted.”

To reduce its emissions, Vale intends to spend between $4 billion- $6 billion. This investment will help to decrease the company’s direct and indirect carbon emissions and by 33%. The company plans to achieve zero net emissions by 2050.

Bartolomeo explained that his own remuneration plan now has safety and sustainability goals. 20% of his compensation is linked to environmental, social and governance (ESG), goals. Vale also plans to develop a new pellet of iron ore that will help reduce carbon emissions for steelmaking customers. This so-called green brquette is the product of almost 10 years worth of research and development. It will be available in 2023. The briquette is composed of iron ore, a technological binding solution that includes sand obtained from treatment of mine tailings. It can withstand high blast furnace temperatures without exploding. Bartolomeo explained that the new pellet has an 80% lower carbon footprint. It is expected that the company can produce more than 50 million tonnes per year of green brigades, creating value and environmental benefits in the long-term.

He said, “It is a new business venture for Vale.” This isn’t greenwashing.