JBIC Signs MOU with Vale S.A. in Brazil
Strengthening Cooperation in Supply Chain Resilience of Mineral Resources Including Low-Carbon Steel Raw Materials and Decarbonization

• Region: Latin America and the Caribbean
• Energy and Natural Resources
• Environment

1. The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed today a Memorandum of Understanding (MOU) with Vale S.A. (VALE) in Brazil.
     
2. VALE is a world-leading supplier of high-quality mineral resources, such as iron, nickel, and copper. It has established favorable and long-standing business relationships with Japanese companies by stably supplying steel raw materials to Japan. The iron-rich pellets and pellet feed^*1 it produces are expected to be used more widely as low-carbon raw materials for steel production in a direct reduction method, which can significantly reduce CO2 emissions compared to conventional blast furnaces. With this MOU, JBIC will further develop its relationship with VALE, to promote collaboration between VALE and Japanese companies, secure stable supplies of raw materials for making steel, including traditional iron ore, structure projects for enhancing the resilience of the supply chain of low-carbon steel raw materials. JBIC will also support future cooperation between VALE and Japanese companies in the non-ferrous metal sector^*2.
     
3. In the Fourth Medium-term Business Plan, released in June 2021, JBIC aims to promote energy transformation toward the realization of a decarbonized society and to rebuild and strengthen the resilience of international supply chains. In addition, in its ESG Policy released in October 2021, JBIC is committed to pursuing ambitious and accelerated efforts to reduce its operational GHG emissions to net zero by 2030 and to achieve net zero emissions of its finance portfolio by 2050. The ESG Policy states that JBIC will contribute toward realizing global carbon neutrality by supporting and accelerating energy transitions toward a decarbonized society in emerging and developing countries. The MOU is in line with the Medium-Term Business Plan and ESG Policy of JBIC because it enables VALE to expand the possibility of cooperation with Japanese companies in initiatives to achieve the goal of decarbonization.
     
4. As Japan’s policy-based financial institution, JBIC will continue to provide financial support to create business opportunities and promote business for Japanese companies in a variety of sectors through enhanced supply chain resilience and strengthened cooperation with important partners in the decarbonization sector.
     

Note

1. *1 
   Pellet feed is processed iron ore crushed into particles 0.05 mm or smaller in diameter. It is agglomerated into pellets in a pellet plant and fed into a direct reduction iron plant, etc.
2. *2 
   For the recent projects with VALE, see Press Releases on March 31, 2021 and March 19, 2024.