Business

Vale is uniquely positioned to thrive in the mining structural growth trends, and we continue to advance with our plans to enhance our position.

• At the steel decarbonization front, we secured natural gas supply to our pellet plant in São Luís (Maranhão) which will allow for the usage of natural gas in 100% of our pelletizing plants by 2024. This is a major step towards our goal to reduce scopes 1 and 2 emissions by 33% by 2030.
• As part of our Powershift program, we received our second 100%-electric battery-powered locomotive. The equipment will initially operate at the Ponta da Madeira Terminal's switchyard in São Luis (MA), with autonomy to operate up to 10 hours without stops for recharging.
• In April, we signed a MoU with Nippon Steel Corporation to pursue ironmaking solutions focused on the carbon neutral steelmaking process, in line with our commitment to reducing 15% of net Scope 3 emissions by 2035.
• In July, in partnership with Shagang and Ningbo Zhoushan Port, we started implementing the Zhongzhai Pre-blending Project to develop silo-blending facilities in the Zhongzhai Ore Terminal in Zhejiang Province, China.
• We also advanced in our agenda for alternative fuel in shipping with the granting of an Approval in Principle (AIP) to a pioneering project for multi-fuel tanks on iron ore carriers. The system will allow vessels to be adapted to store liquefied natural gas (LNG), methanol, 4 and ammonia.
• In our Base Metals operations, we had important advancements in de-risking with the conclusion of the planned maintenance of the Copper Cliff Smelter and Refinery and Long Harbour, Clydach and Matsusaka refineries. We finished the rebuild of PTVI's Furnace 4 and heating up has started in mid-June.
• Additionally, we concluded the pre-feasibility study for a 110ktpy nickel sulfate project, the chemical compound used to produce nickel-based lithium-ion batteries.

• In July, we celebrated 40 years of relationship with the Xikrin do Cateté indigenous people. We recently settled an historic agreement ending a 15-year dispute and initiated a new phase with the Xikrin community, guided by constant dialogue and joint construction.

We achieved important milestones in the de-characterization of our dams:

• In July, we concluded Baixo João Pereira and Dike 4 de-characterizations, being the first two of five structures to be eliminated this year.
• The works are progressing on the other three structures. We expect that 40% of the de-characterization program will be complete by the end of 2022. At Ipoema, the de-characterization started in July, and we expect to conclude the works by the end of 2022.
• In Itabira, we have concluded the backup dam for Coqueirinho, increasing safety during de-characterization activities for Dique Minervino and Cordão Nova Vista, which we expect to eliminate by 2029.
• We have removed approximately 40% of the tailings from the B3/B4 dam, currently at emergency level 3, and we expect to finalize its decharacterization by 2025.

• Our reshaping agenda advanced as we concluded the sale of the Midwestern System’s iron ore, manganese, and logistics assets.
• We also entered, together with our partners Posco and Dongkuk, into a binding agreement with ArcelorMittal to sell Companhia Siderúrgica do Pecém - CSP”.
• In Base Metals, PTVI, Huayou, and Ford Motor Co. signed a memorandum of understanding to create a three-party relationship in Indonesia to process nickel ore mined by PTVI at Pomalaa Block, Kolaka, Southeast Sulawesi. This builds on the framework cooperation agreement for the Pomalaa HPAL project signed in April by PTVI and Huayou, reaffirming our commitment to a sustainable operation in Indonesia and to benefit the local economy.

• As part of our liability management program, we successfully concluded the US$ 1.3 billion tender offer for our notes in June, jointly with the renegotiation of bilateral loans, reducing the next five years' liquidity needs and extending our debt's average tenor.
• Today (07/28), our Board of Directors approved US$ 3.0 billion dividends and Interest on Capital to be paid in September. The amount distributed was calculated based on the year's first half results, in line with our Shareholder Remuneration Policy.
• We progressed with our third consecutive share buyback program of 500 million shares, which is 23% complete, reflecting management’s confidence in creating and sharing value with our shareholders.