Japanese state-owned Japan Bank for International Cooperation (JBIC) and undisclosed private financial institutions will co-provide a loan of $700 million to Brazilian iron ore producer Vale for pellet supply, according to the statement released by the bank.
The loan will be used to ensure a stable pellet and pellet feed supply from Vale to the Japanese steel sector. Japanese steelmakers feel the urgency to cut their carbon emissions or achieve net zero emissions since global efforts have been accelerated. A wide range of raw materials are important for them to achieve decarbonization. JBIC’s financial support of local steelmakers’ long-term pellet and pellet feed supply will ensure the unabated supply necessary for the sector.
This will also contribute to sustainability efforts and strengthen Japan’s partnership with Vale, which has a crucial role as a resource supplier to the country.
