Vale heartened by country's economic prospects

Multinational mining and steelmaking major Vale S.A. said it sees substantial investment opportunities in China and reaffirmed its commitment to the Chinese market fueled by unwavering confidence in the nation's sustained economic growth.

"As our largest market globally, China has a very vibrant economy with massive opportunities for investment. We will continue deepening our foothold in the country considering the massive market opportunities," said Gustavo Pimenta, CEO of Vale.

"As a long-term partner of China for over 50 years, we see tremendous opportunities for collaboration with China. We have been actively engaging in discussions with potential Chinese partners to jointly develop projects abroad and we look forward to working with our Chinese partners to jointly grow our business overseas, creating long-term value for the global steel industry, he said.

"China, the world's largest steel manufacturer and iron ore consumer, is very important for Vale. It has been our largest market since 2006 and the destination of more than 50 percent of our iron ore products since 2014.

"We believe that China will continue to be our most important market in the future."

Pimenta expressed confidence in China's economic outlook, as the country remains committed to unswervingly promoting high-standard opening-up while continuously improving its business environment for foreign investors.

"Last year, China's GDP grew by 5 percent year-on-year, meeting its pre-set growth target, an admirable achievement especially when we consider the increasingly complex international environment last year. This growth has once again reflected the strong resilience of the Chinese economy," he said.

"This year, China set a growth target of around 5 percent for its economy, which we believe will be achieved."

According to Pimenta, Vale is glad to see the action plan, issued by the Chinese government last month to stabilize foreign investment, boost domestic consumption while addressing structural challenges.

"The action plan has been well received by multinational corporations like Vale and we remain confident of the dynamism of the Chinese economy."

China has taken multi-pronged measures to stabilize foreign investment since the start of this year. Last month, the country issued an action plan to stabilize foreign investment in 2025.

Vale said China will remain at the core of its business strategy, while the company has been making every effort to meet the evolving demands of Chinese customers.

The company signed a memorandum of understanding in Beijing on Thursday with HBIS Group, a leading Chinese iron and steel manufacturer, to deepen collaboration on decarbonization and jointly promote the green and low-carbon development of the steel industry.

The two parties will jointly explore low-carbon solutions, breakthrough decarbonization technologies such as circular economy, hydrogen metallurgy, and carbon capture, usage and storage, and new paths and new methods in the field of carbon asset management.

Vale also produces metals used in energy transition.

Industry experts believe international energy companies have been increasingly targeting China, which has been experiencing rapid advancements in new energy technologies.

Driven by ambitious carbon neutrality targets and significant investments in renewable energy infrastructure, China presents a highly attractive market for global energy companies, said Wang Lining, director of the oil market department under the economics and technology research institute of China National Petroleum Corp.

By participating in China's expanding green energy sector, global firms can diversify their operations, tap into the world's largest energy market and position themselves at the forefront of the global energy shift, he said.

Looking ahead, Pimenta pointed to further collaborative opportunities with Chinese partners in decarbonization.

The company has been cooperating with China's BYD, the country's largest electric vehicle manufacturer, to study the electrification of light vehicles. Some electric models will be tested in the mining company's operational areas, with the aim of reducing the use of cars powered by fossil fuels.

It has also been working with Jinko Solar, one of China's major solar technology companies, to construct a solar power plant in Brazil, one of the largest solar projects in Latin America, with a peak installed capacity of 766 megawatts, equivalent to the annual electricity consumption of a city with 800,000 inhabitants.

As the world's largest consumer of steel, and consequently, a major importer of iron ore, China is expected to remain a dominant force in global steel consumption and production growth.

zhengxin@chinadaily.com.cn