Vale CEO Meets Brazil's Lula, Highlights 'Convergence' with Government Agenda

In a significant step towards mending relations, Vale CEO Gustavo Pimenta met with Brazilian President Luiz Inácio Lula da Silva (Lula) on Tuesday, January 29, 2025. The meeting, held at the Palácio do Planalto in Brasília, marked Pimenta's first official encounter with Lula since assuming the helm of the mining giant in October 2024. The two leaders discussed Vale's strategic projects and their alignment with Brazil's development agenda, particularly in the areas of transição energética and descarbonização.



Pimenta, who was chosen by Vale's board to improve the company's relationship with the government and other stakeholders, emphasized the "enorme convergência" between Vale's projects and Brazil's development agenda. He highlighted the company's commitment to working together with the government to achieve common goals, such as promoting sustainable development and economic growth. Lula, in turn, stressed the importance of collaboration between the government and the mining sector, noting that past "ruídos" should not recur.

During the meeting, Pimenta presented Vale's projects, including mineração circular initiatives, a new copper exploration plant in the Carajás region of Pará, and the company's production and sales results for 2024. The production of minério de ferro in the 4º trimestre de 2024 decreased by 4.6% compared to the same period in 2023, reaching 85.3 million tons. In total, the production reached 327.675 million tons, which is 2% higher than the result in 2023.

The improved relationship between Vale and the Brazilian government is expected to have a positive impact on the company's operations, investments, and future growth prospects. Better communication and collaboration with the government can lead to faster approvals and permits, enhanced reputation, and potential tax incentives. This, in turn, can help Vale maintain its competitive edge in the market and expand its operations.

In conclusion, Vale CEO Gustavo Pimenta's meeting with President Lula signals a new era of cooperation between the mining giant and the Brazilian government. By highlighting the 'enorme convergência' between Vale's projects and Brazil's development agenda, Pimenta has set the stage for a more productive and mutually beneficial relationship. As Vale continues to invest in sustainable and innovative projects, it is well-positioned to contribute to Brazil's economic growth and social development.