Vale Ventures into Sand Market with Brazilian Iron Ore Tailings

26 Oct, 2023

Vale Ventures into Sand Market with Brazilian Iron Ore Tailings

Vale SA, the international parent company of Vale Canada, has introduced a novel solution to address its tailings dam challenges. In response to safety issues and environmental concerns surrounding these dams, Vale has launched a spinoff company called Agera. Agera is tasked with the mission of processing iron ore tailings into "sustainable sand" for use in construction and road projects.

The decision to embark on this venture was influenced by the tragic failures of two dams operated by Vale SA in recent years. These catastrophic events resulted in the loss of hundreds of lives and significant environmental damage. In the aftermath of these incidents, Vale recognized the need for a more responsible and sustainable approach to its operations.

Agera, headquartered in the state of Minas Gerais, Brazil, is set to expand and develop what Vale refers to as the "Sustainable Sand business." The aim is to produce commercial-quality sand through the treatment of tailings generated by Vale's iron ore operations in the state. Agera will actively promote the commercialization and distribution of this sustainable sand. Moreover, the new company is committed to investing in research and development (R&D) to enhance and innovate solutions related to this sustainable product.

Vale commenced the production of sustainable sand in 2021, following seven years of extensive research. This sand is intended to serve as an eco-friendly substitute for sand traditionally extracted from the environment. Since its introduction, approximately 900,000 tons of this sustainable sand have been supplied to the construction sector and road paving projects. Vale has ambitious targets, aiming to sell one million tons this year and 2.1 million tons by 2024.

The company's determination to embrace sustainability is a response to the international condemnation and embarrassment it faced due to the two major tailings dam failures. The most devastating of these was the Brumadinho Dam disaster on January 25, 2019, at the Córrego do Feijão iron ore mine, owned by Vale, which resulted in the tragic loss of over 250 lives. Another significant incident occurred on November 5, 2015, when the Fundão tailings dam catastrophically failed at the Germano iron ore mine of the Samarco Mariana Mining Complex, partly owned by Vale, near Mariana, Minas Gerais. This incident claimed the lives of an estimated 19 people.

In response to these tragedies, Vale has been diligently working on reparations and taking comprehensive action on social, environmental, and economic fronts since the 2019 dam failure. The creation of the sustainable sand project aligns with these efforts and is expected to contribute to environmental conservation by reducing the need for sand extraction from various natural ecosystems.

Vale's commitment to sustainability and innovation dates back to 2014 when it initiated research to find solutions for the reutilization of sand generated during the iron ore processing. The objective was to minimize the generation of tailings. In 2021, Vale successfully launched Sustainable Sand, a product designed for civil construction with a 100% legal origin, high silica content, low iron content, and superior chemical and granulometric consistency.

It's worth noting that Vale is also a prominent mining company in Sudbury, where it operates several mines, a mill, a smelter, and a refinery for the extraction of nickel and copper.