Transcription
Good morning all. My name is Gustavo Hawk. It's a pleasure to be here. Actually, it's the second time I'm here. Last year, I was talking about inventory capital investments, and today I am talking about something with a very strong connective with my personal purpose and with the company's purpose.
I am the head of Future Use. Future Use is one of the activities that is responsible to provide or design or give a new purpose for those areas where one day was on my new operations. And sometimes, when you talk about circular mining, we don't think in the in the territory, in the land, as part of the circularity. We usually just think about the waste, about the products that are generated in our operations.
And to talk about the future, to talk about the future, you need to think about the behaviors that are attaining changing the world, the technologies that are impacting the world. I cannot talk about in a project for some territory in 20 years ahead without considering this. And to talk about this, I need to share the history of Vale. Vale started their operations in '42, will be completing 100 years in 2042. And looking further, looking for these futures, we decided to design a strategy for 20 years ahead, thinking not only the present or in the strategic goals for the next five years, but how can we think in 20 years ahead?
So, we have these four growth, these four platforms, and two of them are the circular mining and the nature-based solutions. How can we develop a company, a Vale, when achieved 100 years, focus on circular mining and naturally based solutions? And to to reach 2042, we need to start to develop the present. And this is the mining agreements that we have, and we bring to the present the rip of pose waste, the core products that what we usually think about circular mine. But we have in our strategy our the future use, the way that we can develop a post-mind model to deliver positive legs to the community. So, how can we connect everything? How can we bring to the loop of circularity the waste, the core products, and the future use?
And I'm I'm bringing here, and I'm going to share just one small example of this. But to think 20 years ahead, I need to understand, to start, and to go deep on the changing world. And these pictures, I took this in London last year, and it starts to to got my attention. The the first one, it's the the black market. The back market, it's spread all over the the tubes there, the city. Basically, what they do, it's rebuy your product and it starts to recycle. So, it's a business that is growing there. But this business, and the second one, the ice mesh, and the eye, it's a comparative of Apple. They repair, replace, and recycle the Apple products. So, what this business are showing that the consumer are changing their behavior. They are stopping to keep the devices at home and starts to circulate this.
And the questions that I I make usually when I see this is, made the money sometimes being impacted by this kind of behavior? For example, if I have two cars, a Mercedes and a BMW, and one of them I know the RG of the metals, and I know how these matters will be his cycle. May my decision be influenced by this or not? And if yes, hold this final consumer impact the mining? Should I have traceability? Should I have a recycling process? May I blend my my iron or my copper or my Cobalt with some copper that comes from a country that maybe they have a slave workers there or seamlessly? I don't know. But this behave of the consumer in the end of line may impact the mind. We believe.
The second one, all the time we see this information and this news about the downtowns, specifically here in U.S. LA's, the downtown is empty. San Francisco, it's terrible there. To eater, Elon Musk decided to not decide. He tried to uh open the Twitter, the Twitter's headquarters to the homeless people there because no one is going to work there. And he has a 20 years agreement to keep the the building. Chicago also, yesterday I saw a new uh a news about New York that now they reach at 50 percent of occupancy. 50 percent. They have 50 percent empty there. And why I'm bringing this here? If this movement continues, what is going to happen for the downtown in the large series? They will be occupied or not? Where the people are going to live? They move to the suburbs or they move to the countryside? What's gonna happen with these buildings? May my job be the future job, future use for these buildings? I don't know what will gonna happen with the civil constructions if we do not demand more huge buildings as Christ scriptures for the next times. How this is going to impact? I don't know. But when I think what to do with a territory 20 years ahead, I need to consider this aspect.
The last one, four days a week walks. Many of the place, many of the countries is studying this. They are considering to implement this. When in the beginning of industrial revolutions, and someone started the five days, they did this. In the beginning of six, and they move it to five, it was like a evolution. Could we move to four days? Chat DDP, robotics, other technology, improve our productivity? And if it happens, what you're gonna need for our free time? Pleasure places to go? How are you gonna occupy this? I don't know. But I need to consider this.
So, how we integrate the circularity that we mentioned in our strategy with this changing behaviors, with this technology that's coming up and is influencing our life? First of all, in 2020, Vale opens the first factors to produce interlocking floors, the structures, concrete blocks, ceiling, ceiling blocks, concrete slabs, and shackles. It's made by our waste. It's recovered there. We have this this factor. It's nothing new. A lot of companies do this, but we are starting the process there, three years ahead.
Second, our Ascent. We are we have two mines that's producing this. Ascent, it's a high-quality sand. One of our challenges is that we are having difficult to keep the the characters, the specifications of the sand. Usually, you are delivering much better same than we supposed to deliver. We need to consider all the aspects that environmentally the sand produced, because we're gonna impact those who extract this sand from the rivers and damage the rivers and everything else. So, how can you bring this and how we communicate for the society, for the stakeholders, that we are producing in sand? Last year, we commercialized one million tons. These years, we we are trying to reach 2 million tons. It's the best scent produced in Brazil today.
Third, oops, cement. This is one startup. This one, it can picture, please. Vale hasn't announced it yet. It's a startup that it's producing a de-combodiazide geopolymer. And it impact a lot on the civil constructions, the way that we're gonna deliver the cement. We're gonna impact the our waste. You're gonna change the way that the civil construction is is doing. So, I mentioned here just three cases of products that were developing based or in our waste. But in the end of the loop of circularity, I have the territory. And here is one case that we are bringing to share.
I'll stop here because I just want to give this perspective. Men of the Brazilians here know this place. It's amazing and unique place. It's a old Urban mine operations. It's probably one of the few, if not only place near to a big metropolis like this. You can see the forest. You can see the pit, which is the deepest pit in in Latin America. It's almost 200 meters down. It's amazing place. And how can we connect this territory with the products that I mentioned?
So, first of all, in the last 20 years, we are trying to give this back to the society. We developed several projects, but usually you look for this project as a whole. The 2000 hectare is quite difficult to give a new propose for our area like this. So, what we decided to do is to split the territory because, as as you saw in the video, we have a continuous work being done there to provide the stability of the physical and the chemical stability. So, what we decided to do is sectorize this and bring those products just back here. We we are working harder to deliver the sector one this year in September. To do this, we also sectorize at the sector one. We did the sector one A, B, and C. We are trying to deliver the A to Z. They adjust this part. The the building one, it's a very emblematic building that has enumerous potentials. We are bringing it to this place the possibility to have the first open-air Museum that tells the history of the circle, the circular mine in the world. So, we're gonna put in this place all the the pavement to be done with our interlocking floors. We will copy the trees that there is on um The Getty Museum, which is made of iron. We gonna have the sandboxes that with the center we produce. Our orchard or phone to be designed with the cement, and you're gonna tell and you're gonna the toad the histories. The helipon, the the heli Point used by the executives, it is activated. This highly point and you become our a point using the water from the the pit. So, we're gonna have the chance here to connect and to close the loop and tell the histories of uh circular mine.
And here we have just some examples of what we are starting to do. We want to start into building there. But as I mentioned, I have two more sectors. It's huge, and I need to develop something for the next 10 years here. So, what we are trying to do is we invited these universities to support us with a process that's called Innovation Olympics. And it's important to mention here because during this week, we heard a lot about innovation and sustainability. Innovation and Sensibility. At the Vale, we are calling this, which is not invented by ours, is not coin-based, innovability. We are trying to bring enough ability for the vice president of sustainability. So, what we did, we invited these students. They are MBA students from these universities, and they had eight weeks to propose, to search, and to propose business models and solutions that would fit on that territory. So, we received 25. It's called field of place, but we have since the wellness History Center, passing through the nuclear energy, to the biodiversity with pollinators populations. And all of this has one model. It's a donation. It's a drive entry. It's an investment made by Vale, and we just try to fit with with fits. We're just trying to work on which fits better for each sector.
So, just a brief example here. You guys saw the picture of the loop. What can you do there? Sometimes you look for the the one pile and say, oh, it's nothing can be there. But if you could, oh, that video there, could you just mute for me, please? The video, it's a old mining of Gogo in Belgium, and they transformed the loop like uh a place that the kids can is lopedal. So, they take advantage of the walk that was being there and transform it is in a very innovative place. The second one, could you have in that that the larger circle there, brings some competition like a race car with electrifications and using the community, the universities to develop solutions for decarbonizations, for electrifications? I don't know. But they brought this. And the last one, it's the biomass recycling plant. We just discovered that near of our territory, there is a big place that three three cities put the garbage there, and it's a terrible place, you know, environmental issues, health issues. Could we develop it is there to support everything that we want?
So, when we look about circularity, we look for the whole loop, since the waste, the core products, to the territories. And now, what we are trying to design and to deliver for our communities is the history and the lag, the positive legs that mining needs to live from now. My connections, if you're gonna get in touch, please let's talk a little bit more. It's, as I mentioned, it's uh besides the cool name of the job role, it's a very strong uh job that I have and do some very strong connection with my personal purpose. Thank you very much.