Vale unveils proposal to unlock mining and generate up to R$1.3 trillion in tax revenue and 5.3 million jobs in Brazil

• Developed with consulting firm Accenture, the initiative identifies 4 priority areas to position the country as a global protagonist in the sector by 2035.
  
• The proposal was presented at the event "Unlocking Mining's Potential in Brazil" and will be delivered to all presidential candidates.

Vale launched a proposal on Tuesday (18th) in Brasília to accelerate growth in mining and position Brazil as a global protagonist in the sector, leveraging the country's industrial and socioeconomic development. The report "Unlocking Mining's Potential in Brazil," produced in collaboration with Accenture, will be delivered to all presidential candidates in 2026 as a contribution to guide public policies that help strengthen and modernize the foundations of Brazilian mining, as well as expand the country's attractiveness for new mining projects.

"At a moment when paths to boost the country's growth are being discussed, Vale contributes to the debate with a concrete proposal so that Brazil can seize the global window of opportunity and unlock our enormous mining potential," said Gustavo Pimenta, CEO of Vale. "With a proactive agenda, mining can become a powerful platform for shared value, generating jobs, income, economic growth and environmental protection."

The proposal, whose executive summary is available at this link, includes 15 strategic initiatives, divided into 4 priority agendas, to leverage the potential of mining in the coming years:

Licensing and Mining Fundamentals: Geological knowledge, management of mining titles and predictability in licensing.
Integrated Mineral Chain: Infrastructure, energy availability, mineral processing and technological mastery throughout the chain.
Business Environment and Institutional Security: Regulatory, institutional, financial (in a capital-intensive sector) and tax aspects.
Shared Value: Agenda for positive impact and generation of social and environmental value for communities/territories.

Commissioned by Vale, the survey produced by Accenture brings together independent data on the Brazilian mineral sector and projects gains in growth, income and competitiveness for the country from the growth of mineral production in the country. The sector's contribution to tax revenue, which was R$750 billion over the past decade, is expected to rise to R$1.3 trillion in the next cycle, between 2026 and 2035, expanding positive social impact and helping to balance public accounts. If converted into public investment, this amount is equivalent to creating 23.1 million full-time school places, 17.2 million daycare places, 478,000 kilometers of paved roads, or 870,000 hospital beds.

Only 28% of Brazilian territory has been geologically mapped at a scale adequate to guide mineral research investment decisions, limiting the identification of new exploration frontiers in the country. The survey projects that, with a coordinated agenda among government, the private sector and society, Brazil's annual mineral production could jump from around R$300 billion currently to up to R$535 billion in 2035. In the scenario considered by the report, the sector's total impact on employment, currently around 3 million, could contribute to reaching up to 5.3 million direct, indirect and induced jobs in the country over the same period.*

The study also estimates that essential minerals produced in Brazil for electric vehicles, solar panels and wind turbines could help avoid between 1.6 and 2 gigatonnes of CO2 equivalent emissions per year worldwide by 2050. This volume is comparable to nearly all of Brazil's current annual emissions.

The report's launch was part of the "Unlocking Mining's Potential in Brazil" forum, held on Tuesday (8/18) by Editora Globo and Vale, in Brasília, with the participation of representatives from the federal government, the mining production sector and infrastructure and competitiveness experts. The program included presentations and discussions on mining's potential in Brazil and on infrastructure and competitiveness in the sector.

About Vale

"Vale is a global mining company that exists to improve life and transform the future together. Headquartered in Brazil and operating around the world, it is one of the largest global producers of iron ore, copper and nickel. Its operations comprise extensive logistics systems integrated with its mines, including railways, maritime terminals and ports. Vale's ambition is to lead value generation in mining in an ethical and sustainable way. The company also seeks to be a leader in steelmaking decarbonization, with competitive iron ore costs, customer focus and an adaptable portfolio, in addition to accelerating growth in copper and increasing operational efficiency in nickel."

*The projections are estimates based on scenarios and should not be interpreted as forecasts. They depend on a series of assumptions, including global demand growth, investment levels, sector competitiveness and the implementation of measures that enable the expansion of the Brazilian mineral value chain.

The full study is available at this link.