Vale launches venture capital arm to support mining start-ups
The Brazilian mining company Vale has announcement the launch of a corporate venture capital unit to support start-ups offering “disruptive innovations” in the metals and mining sectors.
Named Vale Ventures, the company initially earmarked $100 million for companies engaged in sustainable mining initiatives.
Vale said the venture capital initiative will create business opportunities and innovative technologies to integrate into its operations.
The unit is expected to offer seed funding and seed investments in start-ups in exchange for 3% to 5% minority stakes in those companies, as reported Bloomberg News.
Viktor Moszkowicz, Director of Vale Ventures, said, “We will collaborate with forward-thinking start-ups bringing big ideas and bold thinking to these monumental challenges.
“By creating a portfolio of disruptive solutions, we can generate financial and strategic return and bring new business opportunities, ideas and knowledge to our business, our customers and society.”
Vale Ventures’ investment will focus on four themes, namely zero waste mining, decarbonization in the mining value chain, energy transition metals and the future of mining.
The company will invest in low-carbon technologies that could help Vale and its customers reach their goal of carbon neutrality in 2050.
Vale Ventures will also invest in start-ups that focus on reducing mining waste and environmental impact while supporting the circular economy.
Additionally, it will invest in disruptive technologies that will change the way miners operate, as well as start-ups that accelerate the supply of essential metals to drive the energy transition.
Several Vale competitors, including BHP Group and Rio Tinto Group, have launched similar venture capital initiatives in recent months.
Earlier this year, the company agreed to sell its manganese and iron ore mines in central Brazil to private investment holding company J&F Investimentos for an enterprise value of $1.2 billion.