2. Vale Technological Institute:
DEPARTAMENTO DO INSTITUTO
ATECNOLÓGICO VALE - DITV
Mining Company Strategy
for the 21st Century
Luiz Mello
luiz.mello@vale.com
3. Technology and Innovation at Vale
Vale's technology centers
Vale Base Metals Technology Development (VBMTD, Canada)
When Vale acquired Canadian mining company Inco in 2006, it also gained an important technology center, now called the
Vale Bse Metals Technology Development center, in Mississauga in the Toronto region. Having operated for more than 100
years, the facility is a global center of reference in nickel technology and is staffed by 130 employees.
The main aim of this technology center is to increase Vale’s competitive advantages in the nickel business, supporting the
company’s growth strategies through the responsible, safe and environmentally friendly use of technology, particularly in
the fields of nickel and copper processing, hydrometallurgy and pyrometallurgy.
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4. Technology and Innovation at Vale
Vale's technology centers
Ferrous Metals Technology Center (CTF)
Opened in September 2008, following a R$15 million investment.
It has first-class facilities for simulating the entire iron production process, including the processing stage and the behavior
of ore in steelworks. The center’s main objective is to evaluate iron ore’s characteristics and its suitability for use in
steelworks.
Located in Nova Lima in the metropolitan region of Belo Horizonte (Minas Gerais), the center’s laboratories are equipped
with modern scientific and technological resources and staffed by 30 researchers and 50 technical and administrative
professionals.
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5. Technology and Innovation at Vale
Vale's technology centers
• Bayovar Project in Peru: phosphates
Since the 1960s, when the Mineral Development Center • Moatize Project in Mozambique: coal
was established in Minas Gerais, Vale has been • Tres Valles Project in Chile: copper
investing in technological development. Since Vale
• Evate Project in Mozambique: phosphates
entered the global mining market in 2002, this center has
been developing the technologies used in its greenfield • Neuquem Project in Argentina: potash
projects. • Las Cuevas Project in Colombia: coal
• Antofalla Project in Argentina: potash
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6. Technology and Innovation at Vale
Leveraging value
Reduction in water Reduction in CO2 Reduction in dust
consumption: emissions: emissions:
At Carajás Mine in Pará, where Vale In the “truckless” system developed To prevent particulates in ore
currently produces around one third by Vale, mining is carried out using heaps from being dispersed by
of its iron ore, a new technology mobile crushing units and conveyor the wind, Vale used “wind fence”
has enabled water savings belts to replace off-highway trucks. technology for the first time in
equivalent to the amount This new approach cuts CO2 Latin America, at Tubarão Port in
consumed by a city of 430,000 Vitória. The first wind fence
emissions by around 77%, reduces
inhabitants (19.7 million m3 per installed cut dust emissions by
diesel consumption by 76% and
year) and has also cut power approximately 77%.
lessens workers’ risk exposure.
consumption by over 18,000
megawatts per year, by eliminating
the use of water to process ore.
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7. Technology and Innovation at Vale
Ever-more complex mineral deposits – containing contaminants and at great
depths – require new technologies
Using lower-grade iron ore:
At the oldest mines of Minas Gerais, modern processing technologies will allow ore of 40%
iron content or less to be enriched to around 62% to 65%, in line with market
specifications. This process represents the third technological wave in making use of mineral
resources in the Iron Quadrangle region, starting in the 1940s with rich hematite ore, evolving
through technological advances to use friable low-grade itabirite, and now using compact, even
lower-grade itabirite.
Using lower-grade potash ore:
In Sergipe, Vale operates a pilot plant and uses the solution mining technique rather than
convention underground methods. The project entails extracting carnallite rock, with much
lower concentrations of KCl (12%) than the sylvinite rock currently mined at Vale’s
industrial unit in Sergipe (26%).
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8. Technology and Innovation at Vale
Investment in technological innovation
Limitations to conventional processes are primarily economic (low intrinsic value, high
processing cost, etc) or technical (such as the presence of contaminants). Technological
innovation is essential to the sustainability of mining.
Innovative technologies for copper:
Vale is studying alternative ways of developing copper
resources in the Carajás region. A demonstration
plant is currently operating in the copper mine’s
industrial area to test a cutting-edge technology
for treating copper concentrates. This plant, which
is capable of producing 10,000 tons of copper cathode
per year, is testing the technical and economic
feasibility of the hydrometallurgical process.
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9. Technology and Innovation at Vale
Investment in technological innovation
Innovative technologies for coal:
In association with Portuguese company SGC Energia, Vale is developing a technology to
produce liquid fuels as an alternative to petroleum.
The technology enables coal deposits to be harnessed to a greater extent by using their
smaller fractions. It will be tested on a pilot scale at the industrial area of Vale’s coal mine in
Mozambique.
Innovative technologies for nickel:
Lateritic nickel ores account for around 70% of global reserves of this metal. Various
technological challenges involved in processing these ores must be overcome in order for new
projects to become economically attractive in current market conditions. Vale is studying,
evaluating and developing a range of innovative hydrometallurgical processing
technologies to make using lateritic nickel ores economically feasible.
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10. Operating Model
DITV’s operations are centered in H3 research
What is an “H3” problem?
New Exploration of new New business
market markets categories
Situation 1:
Application of new technologies to current
technological challenges Existing
market in Growth into
which the adjacent
Market knowledge
company markets
Situation 2: does not
operate
Application of new technologies to new
markets
Situation 3: Existing
Use of technologies mastered by Vale in market in
which the Exploration
new applications company New generation of new
Improvements and cost
operates reduction variations of products categories
Existing technology Existing technology New
mastered by the not mastered by technology
company company
Knowledge of technology
Source: Christian Terwieschand Karl Urich (2009) Innovation
Tournaments: Creating and Selecting Exceptional Opportunities
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11. Vale Technology Committee – VTC
Strategic Technology Management
Vale Technology Committee is the first initiative towards strategic coordination of Vale’s
technology and R&D activities and investments.
VSE
Vale VEL
Technology
Technological
Services R&D
Institute
BioEnergy
Technology
Committee Process
Technology -
Canada
Strategy
Fertilizers
Ferrous
Planning and
Develop.
Energy
Integrated Environ. &
Plan. & Tech. Sustainable
Innovation and
Develop. Develop.
Development
Biopalma
Tecnored
13. Technological Research
DITV has taken an important step forward in shifting Vale’s technology and
innovation management towards an “open-innovation” approach
History of R&D at Vale
1965 1997 2003 2006 2009
1 2 3 4 R&D structure 5
Technology DITV
SUTEC Business units and ITV’s
Committee institutionally
created decentralized vision
created formalized
evaluated
Revenues New markets
New
Spin-offs
revenues
Licensing New
markets
Revenue in the Revenue in the
market itself market itself
Present
Internal Internal market
development development
center center
Expenses
Closed Model Open Innovation Model
Closed Innovation Model Open Innovation Model
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16. Operating Model
A collaborative network connecting not only ITV centers, but also domestic and
international institutions
Canadá
USA Europe
China
Brazil ITV DS
Pará
África
Network ITV Min
Minas Australia
Gerais
ITV
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17. Vale Technology Institute
Legal Framework
By-laws approved on April 29, 2010
Purpose of institution
To promote the development and dissemination
of research and technologies of technical and
scientific nature, and other related activities.
General
Form of organization Assembly
The Vale Technology Institute Association (ITV)
is a non-profit private institution of indefinite Management Audit
duration. Council Council
ITV will be created as a single legal entity,
headquartered in Rio de Janeiro and with Executive
Board
operations in Belém and Ouro Preto.
Scientific
Council
Distribution of surpluses
It will not distribute any operational and financial
surpluses that may arise, dividends, bonuses,
stakes or parts of its assets. ITV ITV
Sustainable Mining
Remuneration Development
It will not remunerate the positions of its
Management Council, Executive Board and Audit
Council, nor the activities of its members.
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18. Value propositions
DITV offers to its stakeholders:
Vale Business Units (BU)
Facilitate access to partnerships, financial resources, and
specialized knowledge (researchers)
Use of synergies among the BU
Human resources training
Internal
Access to technological solutions generated outside the company
Corporate
Strategic options for future business
Strengthen Vale's image with regard to technology and innovation
S&T Community
Strengthen the S&T system
Specialized human resources (MSc, PhD, etc)
External
Government and Regions
Regional development associated with research, innovation,
and technology
Regional increase of the S&T community
19. Operational model- ITV Units
• MSc and PhD programs
• Extension and training courses
• Visiting professors and pos-docs
• Scientific endeavor and
technological development
• Sustainable Development, Mining
and Energy.
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20. Operational model: Research teams:
- Strong collaboration logic nationally and internationally
- Potential transfer of technologies to operation and spin-offs
Core researchers
Full-time researchers
from ITV staff
Postgraduate students Visiting researchers
Postgraduate Fixed-term contract
students ITV research team researchers
Intensive
international linkages
Entrepreneurial
researchers
Researchers with
management-
oriented training
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22. Desenvolvimento da
comunidade de CT&I
conhecimento de CT&I
Formação de recursos
instituições de CT&I
Vale Oman
Infraestrutura de
especializados
Produção de
humanos
Ações de cooperação e fomento
Cooperation involving SQU (Oman) and UFV (Brazil)
Theme induced Geographic spontaneous Mode spontaneous
• Mango wilt disease caused by • Research scholarships
Ceratocystis fimbriata in Oman DITV searched a Brazilian institution
• Insumes
• Etiology, tolerance and management suitable to cooperate with the Sultan
• Permanent materials (computers,
of diseases in lime crops Qaboos University.
software, books, and etc.)
• Field research (travel and
accommodation)
• Participation in conferences
23. Desenvolvimento da
comunidade de CT&I
conhecimento de CT&I
Formação de recursos
instituições de CT&I
Logistics (railways)
Infraestrutura de
especializados
Produção de
humanos
Ações de cooperação e fomento
Cooperation project involving EPFL (Switzerland) and USP (Brazil)
Theme induced Geographic induced Mode spontaneous
DITV search for demand within Vale EPFL - École Polytechnique de There were no restrictions.
for research to be conducted by the Lausanne
EPFL. USP – University of São Paulo
• Structural assessment of bridges: Structural assessment of bridges of Vitoria a Minas railway (EFVM)
• Assessment of railway infrastructure elements: railroad assessment, including analysis of the actual infrastructure and the
elements using different materials
Factors governing security of supply are multidimensional (geological, technical, environmental, social, political, economic) and these factors frame the size of the ‘reserve’ base (RHS) ‘Scare stories’ relating to security of supply are linked to reserves, if we are going to meet the demands of the green economy we need a twin-track approach that looks to:Extend the resource base by advancing source-transport-sink knowledge (observation, analytical, modelling) for green economy minerals (Challenge 1) because demand cannot be met from e.g. recycling/substitution/low grade ores in medium term knowledge base is more uncertain as move left to right (bottom)Coupled with long-term goal to advance science to extend resource base using lower grade ores (Challenge 2) i.e. low-carbon metal extractioncurrently high energy and environmental cost (water, pollution)hypothesized mineralogical barrier that may apply to rare metals (≠U ≠Fe) suggests new ways are needed to extract geochemically scarce elements from the resource base at low energy cost Opportunities to advance knowledge on biological extraction? Biospheric feedbacks?Opportunities for a new look at the ‘critical zone’ where some of the ‘work’ has already been done in presenting mineral resources in forms that might be used if their high ‘dilution’ can be overcome without damage to the environmentOutcomes: a programme that, couples cutting-edge research with sustainability criteriafocused on science not access to mineralsdelivers to impact agenda and to NERC goalsbrings together and ‘energises’ the earth science communitygenerates opportunities for leverage and international partnershipsLWEC BAB supportaligned to TSB resource efficiency platform