Vale completes negotiations for iron ore briquette plant in the US

Brazilian mining company Vale has announced that it has completed negotiations with the US Department of Energy’s (DOE) Clean Energy Demonstration Office and will begin the first phase of a project to build an industrial-scale briquette plant in Louisiana.

At this stage, Vale received $3.8 million from the DOE, which will be used to conduct engineering studies and public engagement through 2025.

The grant will be awarded to Vale USA LLC (a subsidiary of Vale) under a cooperative agreement under the DOE’s Industrial Demonstration Program (IDP). The agreement provides for the allocation of up to $282.9 million over the life of the project (until 2031).

The project is expected to launch commercial production of Vale’s innovative iron ore briquette adapted for direct reduced iron (DRI) technology. The design capacity of the plant is 1.5 million tons per year with the potential for expansion.

The plant’s location along the Mississippi River in the River Parish region of Louisiana is favorable for access to current and potential end users in the US market. The innovative technology offers significant reductions in carbon, sulfur oxides and nitrous oxide emissions during the production process at minimal cost.

The production of iron ore briquettes contributes to Vale’s commitment to reduce its net emissions by 15% by 2035 under Scope 3. The company also aims to reduce its absolute emissions under Scope 1 and 2 by 33% by 2030 and achieve climate neutrality by 2050.

In September this year, Vale and Midrex Technologies agreed to cooperate in promoting a technical solution for the use of iron ore briquettes in direct reduction plants. The companies signed a technical cooperation agreement. It expands on the cooperation between the parties and the testing work started over the past year.