A subsidiary of the leading Rio de Janeiro mining firm Vale S.A. (NYSE: VALE) has inked a momentous commercial off-take and non-binding Memorandum of Understanding (MOU) with BluestOne, a prominent Brazilian company specializing in the transformation of waste into agriculture-centric products.
Under the agreement, which was announced on Tuesday, Vale Base Metals has committed to supply BluestOne with up to 50,000 tonnes of refinery slag annually, sourced from its Onça Puma mine in Brazil, for the next decade.
BluestOne, known for its expertise in repurposing waste into valuable products for agriculture, is poised to start the construction of a state-of-the-art processing plant near the Onça Puma mine.
This facility will be instrumental in converting slag products into a novel solution designed to bolster the carbon efficiency of mineral fertilizers, catering to the broad needs of the agricultural sector.
The partnership between Vale Base Metals and BluestOne extends beyond the supply agreement. Both companies have committed to working together to explore further opportunities in the circular economy realm.
This includes the treatment and repurposing of additional waste products from Onça Puma, as well as waste materials from other Vale Base Metals operations across the globe. There is also potential for expanding BluestOne’s production capacity for recycled nickel, recovered from waste materials sourced globally.
“BluestOne was born with the circular economy in its DNA and sustainability is the reason for our existence,” BluestOne co-founder Marcel Carratu said in a statement.
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In addition to waste-to-fertilizer initiatives, the MOU envisions broader cooperation between Vale and BluestOne in the realm of sustainability. The partners intend to collaborate on ventures that harness the potential of their combined expertise in the mining and agricultural sectors. This may include utilizing slag-based fertilizers for biomass production, further contributing to the development of eco-friendly agricultural practices.
Vale recently entered into a $3.4 billion partnership with Manara Minerals –a firm backed by Saudi Arabia’s government– to accelerate the growth of the company’s energy transition metals business.
“Waste-to-value and circular mining are key levers in our sustainability strategy and technology roadmap,” Vale Base Metals CEO Deshnee Naidoo said in a statement.
“This MOU and scalability of BluestOne’s technology support our ambition to capture value from what have historically been waste streams while reducing our legacy environmental footprint as part of a wider approach to circular mining.”
Vale Base Metals is set to invest between US$ 25-30 billion in new projects across Brazil, Canada and Indonesia over the next decade. The total amount to be paid to VBM under both agreements is US$ 3.4 billion, for a 13 per cent equity interest.
The company is North America’s largest integrated nickel producer and one of the largest copper firms.
Natalia@mugglehead.com
