Vale's investment depends on a drop in the price of gas

According to the Reuters agency, Vale intends to invest in Production of low-contaminating iron, which would cause a decline in emissions Pollutants from the steel industry. However, the mining company is depending on the Drop in the price of gas, item that is part of the economic project of the government Brazilian.

The reason for this dependence is because natural gas is the Main raw material in the production of Hot Briquetted Iron (HBI), a block Compact with 93% iron content without polluting agents. HBI is used in Electric furnaces of steel that use scrap as input in the production Steel, or in blast furnaces, which use iron ore.

According to the company, the price would have to fall more than 60% compared To the current values so that investment in HBI becomes viable. That's because The production of this iron is made from a high quality ore. Like this With the use of HBI there would be no need to use the coke fuel or metallurgical coal, accounting for about 9% of the global emissions of CO2 from steel mills.

The Minister of Economics, Paulo Guedes, had already cited HBI as a potential product of Vale within its plans to reduce the cost of gas. Recently, the House of Deputies approved a project that withdraws ICMS tax from liquefied petroleum gas (LPG). The measure still needs the Senate's approval, but if it does, it would reduce the cost of the gas. However, in addition to this proposal, there is still no other indicator that ensures the necessary drop in the fuel price.

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