Japan Bank for International Cooperation (JBIC) has led a US$700 million loan to Brazilian mining giant Vale to support its pellet and pellet feed manufacturing.

Pellet feed is processed iron ore crushed into particles 0.05 millimetre or smaller in diameter. It is agglomerated into pellets, which are fed into blast or direct-reduction furnaces for making steel.

In the accelerated global trend toward decarbonization, Japanese steelmakers face an urgent issue of achieving zero or low emissions in the steelmaking process. Securing a stable supply of a wide range of steel raw materials is crucial for them to achieve decarbonization.

The loan, to which JBIC is contributing US$480 million, will help ensure a stable supply of critical mineral resources for the Japanese steel industry, thereby enhancing the resilience of its resource supply chain.

Vale has established favourable and long-standing business relationships with Japanese companies as a world-leading supplier of mineral resources, such as iron, nickel, and copper.

The company is also expected to expand and diversify opportunities to cooperate with Japanese companies, including collaborative projects in Brazil and third countries.