Brazilian mining giant Vale has entered into a five-year global framework agreement with US-based equipment manufacturer Caterpillar to expand their collaboration and focus on productivity, innovation and carbon reduction initiatives.

The collaboration will reduce operating costs and increase asset efficiency for the company.

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The partnership reiterates their commitment, first announced in April 2024, to develop a dual-fuel haul truck that operates on both diesel and ethanol.

Initially, the dual-fuel haul trucks will have the capacity to carry 240 tonnes (t), with plans to extend the technology to trucks capable of moving 320t.

Vale currently operates more than 150 trucks across these two models. The initial testing phase will take place at Caterpillar’s facilities in the US, followed by further validation and testing at Vale’s operations in Minas Gerais.

Vale procurement director Marco Braga said: “The framework agreement represents an evolution in our relationship with Caterpillar, amplifying our focus on maximising the performance of Vale’s assets and allowing us to advance on our decarbonisation path in an economically responsible way.”

Vale is also set to test a battery electric haul truck and Caterpillar’s Dynamic Energy Transfer System (DET), which is currently under development.

The Cat DET system was introduced in September 2024 to enhance the sustainability of mining operations.

Brazil-based Cat dealer Sotreq’s executive vice-president, Marcelo Ribeiro, said: “This strategic collaboration reinforces our commitment to deliver solutions that improve Vale’s operations, with a focus on safety, productivity and operational excellence.”

Diesel fuel use accounts for 15% of Vale’s direct CO₂ equivalent emissions in operations.

Vale aims to cut scope 1 and 2 carbon emissions by 33% by 2030 and reach net-zero emissions by 2050 through its collaboration with Caterpillar.

Caterpillar senior vice-president of Resource Industries Sales, Services & Technology Marc Cameron said: “As global industry leaders, Vale and Caterpillar are seeking not only to meet the demands of the mining sector but also to anticipate technological and environmental trends.”

Australian miner BHP announced plans to trial the Cat DET system at its various sites in September 2024. The system powers both battery-electric and diesel-electric mining trucks.