Vale's Innovative Venture: Turning Iron Ore Waste into Sand Sales

Transforming Tailings: Vale's Agera Sand Company

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Vale, the Brazilian mining giant, announced on Tuesday the establishment of a new company focused on the sale and distribution of sand derived from its iron ore tailings. This initiative forms a crucial part of their ongoing commitment to reducing the accumulation of these materials in dams or storage piles, especially in the wake of significant past disasters.

In recent years, Vale faced two unfortunate incidents of tailings dam collapses in Brazil, which resulted in tragic loss of life and severe environmental consequences. These events compelled the company to explore alternative solutions to minimize their reliance on such structures.

The newly formed entity, named Agera, has emerged as a result of a spin-off from a segment of Vale's operations. Executives are optimistic about Agera's potential, with expectations to sell 1 million metric tons of sand in the current year, generating revenue of 18 million reais (equivalent to $3.57 million USD).

While this initial volume may appear modest compared to the approximately 47 million tons of tailings produced by Vale in 2022, both companies are hopeful that Agera will play a pivotal role in expanding sand production in the years to come.

Tatiana Teixeira, Vale's general manager for New Businesses, explained, "Vale has been dedicated to finding a more sustainable solution for its waste since 2014. Extensive research has been conducted over the years. Our ultimate objective is to promote circular mining practices and reduce our reliance on conventional tailings disposal structures."

In addition to their sand venture, Vale also has plans to completely phase out their upstream tailing dams. They commenced the sale of sand derived from tailings in 2021, marking a significant step towards their sustainability goals.

Looking ahead, Agera anticipates substantial growth, with projected sales of 2.1 million tons in 2024 and an impressive 3 million tons in 2025, according to Fabio Cerqueira, the CEO of the newly established firm. These projections would translate into revenues of 63 million reais for the coming year. The future is bright as Agera strives to play a pivotal role in Vale's sustainable mining journey.

Source: Reuters (Reporting by Marta Nogueira; Editing by Louise Heavens)