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Vale launches global low-carbon iron ore production hubs

Vale, a Brazilian mining giant, is set to establish global "mega hubs" dedicated to low-carbon iron ore production. These hubs, slated for launch within the next year, will be strategically located in Brazil, the US, and the Middle East, aiming to drastically reduce carbon emissions in the steel industry.

Vale launches global low-carbon iron ore production hubs

Vale's Director of Energy and Decarbonization, Ludmilla Nascimento, has confirmed that site selection for these mega hubs is underway. These hubs, a key part of Vale's sustainability strategy for the mining and steel industries, will be built in Brazil, the US, and the Middle East.

he company has already announced plans for similar facilities in Oman, Saudi Arabia, and the United Arab Emirates. Vale has secured over 50 memorandums of understanding with partners, accelerating the development of these hubs.

In an innovative twist, while initial operations in the Middle East will utilize natural gas, Vale is exploring opportunities to integrate green hydrogen technology in its Brazilian operations, taking advantage of the nation's strong renewable energy infrastructure.

Nascimento highlighted the strategic objectives behind these hubs: they aim to not only produce iron products with negligible carbon footprints but also effectively "export energy through the product." She contrasted this with the traditional steel-making process, which typically emits about two tons of CO2 per ton of steel. This emission could be significantly reduced with the use of natural gas and possibly eliminated with hydrogen.

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