JBIC-Loan to Vale S.A. in Brazil

Supporting Japanese Steel Industry's Long-Term Supply of Mineral Resources and Decarbonization.

Region: Latin America and the Caribbean Energy and Natural Resources Import Loans

The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed today a loan agreement amounting to up to USD480 million (JBIC portion) with Vale S.A. (VALE) in Brazil. The loan is co-financed with private financial institutions, bringing the total co-financing amount to USD700 million.

The loan is intended to provide the funds required for Japanese blast furnace manufacturers to stably import pellets and pellet feed*1 from VALE.

Iron is used extensively for various products, including automobiles and construction materials, and is a fundamental metal resource for Japanese industry. In the accelerated global trend toward decarbonization, Japanese steelmakers face an urgent issue of achieving zero or low emissions in the steelmaking process. Securing a stable supply of a wide range of steel raw materials is crucial for them to achieve decarbonization. By financially supporting a Japanese company's long-term supply of pellets and pellet feed, the loan will contribute toward ensuring a stable supply of critical mineral resources for the Japanese steel industry and toward enhancing the resilience of its resource supply chain, through which Japanese companies can sell resources to their overseas businesses in the future. The loan will also help to realize a sustainable society and strengthen Japan's relationship with VALE, which is an important partner in terms of the country's natural resources strategy.

VALE has established favorable and long-standing business relationships with Japanese companies as a world-leading supplier of mineral resources, such as iron, nickel, and copper. It is also expected to expand and diversify opportunities to cooperate with Japanese companies, including collaborative projects in Brazil and third countries. JBIC will further develop its relationship and alliance with VALE and strive toward ensuring a stable supply of mineral resources for Japan as well as create investment and export opportunities for Japanese companies.

As Japan's policy-based financial institution, JBIC will continue to provide financial support to help secure a stable supply of mineral resources for Japan and Japanese companies by drawing on its various financial facilities and schemes for structuring projects and by performing its risk-assuming function.

Note

*1

Pellet feed is processed iron ore crushed into particles 0.05 mm or smaller in diameter. It is agglomerated into pellets in a pellet plant and fed into a blast furnace or direct-reduction furnace.

For further information

Mr.Oono or Mr.Iseki

Press and External Affairs Division, Corporate Planning Department

Tel: +81-3-5218-3100

Fax: +81-3-5218-3955