Catalog of Vale R&D Investments involving external partnerships2013/11/04 · investments in training of specialized human resources. Presentation of investments in R&D projects and

Catalog of Vale R&D Investments involving external partnershipsDecember 2012

Photo: Lucas Lenci / Vale Agency

2

03 Training of human resources02 R&D projects 01 IntroductionContentsStart Projects and

InterviewsIndicators Glossary and

AddendaStart

This catalog covers research and development (R&D)1 projects and research scholarships funded by Vale between 2009 and 2012, by means of external partnerships, managed by Partnership and Resources Management and by Technology and Intellectual Property Management. The data presented herein also includes projects developed by the Vale Institute of Technology (ITV).

1. Throughout this catalog, an R&D project is defined as “creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of knowledge to devise new applications.”.–Frascati Manual; Proposed Standard Practice for Surveys on Research and Experimental Development, 6th ed., 2002.



Addenda

3

Start

Photo: Márcio Dantas / Vale Agency

4



AddendaStart

The initiatives presented in this catalog clearly demonstrate Vale’s

perception with regards to the value of knowledge and education.

These two pillars of a nation’s development are also key to the success

of our company. To paraphrase a Vale motto, there is no mining without

thinking about the future, and there is no future without education and

the production of knowledge.

By supporting initiatives involving partnerships with the academic

community, Vale´s vision generates a virtuous circle: financial resources

invested in universities produce knowledge, which is seized by the

industry, and produces wealth (financial resources), thus contributing to

the social and economic growth of our country. For Vale, integrating this

circuit is a key component in our operational sustainability.

I would like to take this opportunity to thank everyone who has

contributed to develop this initiative. Science, technology and innovation

are all integral parts of Vale operations in a practical and real manner,

leading us to discover new ways to address the demands of the new

times.

Murilo FerreiraVale Chief Executive Officer

Letter from the CEO

5



AddendaContents

Contents

0102

03

Introduction | 6

Investments in R&D projects | 10

Investments in the training of specialized human resources | 37

R&D investments in Brazil | 12

R&D Investments abroad | 16

The profile of Vale’s portfolio of R&D projects involving external partnerships 18

R&D projects according to subject matter | 20

R&D network projects | 33

Investments in research scholarships in Brazil | 39

Research scholarships, by type | 43

2.1

2.2

2.3

2.4

2.5

3.1

3.2

3.3

Projects and Interviews | 48

Indicators | 61

Glossary and Addenda | 62

Letter from the Director | 67

Partnerships under development for HR training | 47

INTRODUCTION 6



Addenda01 Introduction

01 Introduction

This catalog details investments made in scientific and technological

research conducted by the Vale Institute of Technology (ITV) and the

Partnership and Resources Management and by the Technology and

Intellectual Property Management, since 2009, the year ITV was founded,

through partnerships with Institutes of Science and Technology (ISTs)

and/or other companies. These investments amount to approximately

USD 223.3 million2, including USD 32.58 million in financial resources

from external partners, such as the Brazilian Development Bank (BNDES),

National Science and Technology Development Council (CNPq) and State

Research Foundations (FAPs), among others.

In the following chapters, the main features of the R&D portfolio,

consisting of 161 projects and 821 research scholarships, will be

presented. Of these projects, 151 are being developed in partnership

with Brazilian research groups and the remaining 10 with international

research groups. Of the latter, five involve partnerships with U.S. and

Canadian companies3. Country-by-country distribution can be observed

in Map 1 and a state-by-state distribution of investments in Brazil is

presented in Table 1.

Initially, this information will be presented by identifying the

geographical operation of the research involved. Subsequently, data on

the R&D projects will be presented according to their subject areas, while

the information regarding research scholarships will demonstrate Vale’s

investments in training of specialized human resources.

Presentation of investments in R&D projects and in research scholarships, carried out through partnerships between Vale, the ITV and ISTs and/or companies

2. For investments in foreign currency, the price on the date the respective agreements were entered into was considered, based on the exchange rate published by the Central Bank. Furthermore, the values do not consider the amounts related to the initiatives reported in Chapter 3.3 (Science Without Borders Program; National Program to Stimulate Engineer Training - Engineering Training; and Academic Cooperation for Enhancement and Technical Training of Engineers of the Republic of Mozambique);3. Source: Vale (July 2012).

INTRODUCTION 7



Addenda

Source: Vale (2012)

Countries with R&D projects and/or research scholarships contracted

Countries with R&D projects and/or research scholarships in partnership with Brazilian ISTs, but which do not receive resources directly from Vale.

Map 1 – Distribution of the portfolio of R&D projects around the world

Canada1 projectUSD 49.00 M

Brazil151 projects821 scholarshipsUSD 90.48 M

USA4 projectsUSD 63.06 M

Wales1 projectUSD 0.65 M

Chile1 projectUSD 0.41 M

Australia3 projectsUSD 19.75 M

Oman

Mozambique

TotalR&D Projects: 161Research Scholarships: 821Financial Resources: US$ 223.3 M

INTRODUCTION 8



Addenda

State Nº of projects Nº of Scholarships Value

MG 68 234 32.79

PA 38 429 22.11

SP 29 109 19.29

RN 1 0 11.88

RS 5 21 2.15

RJ 5 8 0.81

ES 1 9 0.59

DF 2 4 0.47

GO 1 0 0.18

SC 1 5 0.17

PE 0 1 0.02

PR 0 1 0.02

151 821 90.48

Table 1: Total funds4 invested in Brazil, by state (USD M)

Source: Vale (2012)

4. For chapters 2 and 3, information pertaining to research projects and scholarships will be dealt with separately. However, it is worth noting that: (i) investments earmarked for R&D projects also include research scholarships funded by the respective projects; and (ii) investments earmarked for research scholarships also include funding by means of specific bids for scholarship awards.



Addenda

INTRODUCTION 9 Photo: Lucas Lenci / Vale Agency

INVESTMENTS IN R&D PROJECTS 10



Addenda

Investments in R&D projects02Analysis of the portfolio of R&D projects: distribution by research subject and geographical location, portfolio profile and configuration of research networks

In this chapter, investments in R&D projects being developed through

partnerships with national and international institutions will be

presented5. Firstly, the geographic distribution of the R&D projects,

within Brazil and around the world, will be described. Then, the portfolio

of projects will be analyzed according to the types of research (basic

research, applied research and experimental development, as defined in

the Frascati Manual6) and the characteristic of the projects (incremental,

new platform and disruptive).

5. The financial resources intended exclusively for funding R&D research scholarships will be dealt with in the next chapter.6. Frascati Manual 2002: Proposed Standard Practice for Surveys on Research and Experimental Development, 6th ed., 2002.

Subsequently, the portfolio of R&D projects will be classified according

to areas of scientific knowledge, the types of Vale businesses and as

characterized with regards to the mining chain processes and support

activities. Finally, the characteristics of the sub-group of projects

developed within interstate networks, which involves the exchange of

knowledge among research groups from different Brazilian ISTs will be

analyzed.



Addenda

INVESTMENTS IN R&D PROJECTS 11 Photo: Leonardo Ferreira / Vale Agency




Addenda

2.1 R&D investments in Brazil

Of the 161 R&D projects presented here, 151 are spread around ten

Brazilian states, and these account for approximately USD 88.86 million.

Most projects are developed in the States of Minas Gerais, Pará and São

Paulo and thus financial resources spent in these states will naturally be

greater than in the other states, as can be ascertained in Map 2. This fact

is mainly justified by the 114 projects funded by Vale in conjunction with

three state Research Foundations (FAPs): FAPEMIG, FAPESPA and FAPESP.

Vale’s partnership with the FAPs was formally initiated in 2009 through a

public call for projects, in which Vale and the state governments of Minas

Gerais, Pará and São Paulo invested resources in the in strategic areas

both for the company and for those states, with the aim of producing

and developing high-quality science, technology and innovation in these

three regions.

The Vale-FAPs agreement is also primarily responsible for the high

volume of resources invested in projects in partnership with the main

ISTs7 of these three States: the Federal University of Minas Gerais (UFMG),

the Federal University of Pará (UFPA) and the University of São Paulo

(USP), as seen in Chart 1.

Chart 1 is arranged in decreasing order of resources invested, state-by-

state. It is seen that the block formed by the ISTs of Minas Gerais has a

better rate of distribution among the universities that received funding,

with the Federal University of Minas Gerais (UFMG) and the Federal

University of Ouro Preto (UFOP) topping the list. In Pará and São Paulo,

investments in R&D projects are heavily concentrated respectively in the

Federal University of Pará (UFPA) and in the State University of São Paulo

(USP), but it is seen that UFPA has deserved the largest funding in the

Resources have been invested in R&D projects in the five geographical regions of Brazil.

7. A list of the ISTs is available in Table 6, at the end of this catalogue.




Addenda

Map 2 – Distribution of the R&D project portfolio in Brazil

Source: Vale (2012)

RN

MG

ES

RJ

SP

SCRS

DF

GO

PA

38 projectsUSD 20.81 M 1 project

USD 11.88 M

5 projectsUSD 2.10 M 1 project

USD 0.13 M

29 projectsUSD 19.22 M


1 projectUSD 0.59 M


1 projectUSD 0.18 M


TotalR&D Projects: 151Financial Resources: USD 88.86 M




Addenda

Chart 1 - Distribution of resources invested in ISTs in Brazil, by state (USD M)

Source: Vale (2012)

MG

PA38 projectsUSD 20.81 M


INPE SP

UFOP

0 5 10 15 20

7.556.89

5.78

4.19

2.59

1.75

0.69

0.690.640.560.45

0.22

0.180.170.15

0.10

0.08

UFMG

UFV

UFLA

UNIFEI

CEFET BH

UNIFAL

EMBRAPA MG

BIODIVERSITAS

IFTMG

FIOCRUZ MG

PUC MG

UFU

UFSJ

CDTN

UFJF

UFVJM

UFPA

MPEG

UEPA

EMBRAPA PA

INPE

16.931.451.37

0.770.29

SP

RN1 projectUSD 11.88 M


0 5 10 15 20

13.242.27

0.99

0.84

0.62

0.49

0.41

0.230.12

USP

UNESP

UFSCAR

ITA

UNICAMP

CTBE

IPT

UNIFESP

UFRN 11.88




Addenda

Source: Vale (2012)

RJ

ES1 projectUSD 0.59 M


0 5 10 15 20

0.48

0.19

0.14

UFRJ

PUC RJ

CETEM

UFES 0.59

DF

SC1 projectUSD 0.13 M


0 5 10 15 20

UNESC 0.13

RS5 projectsUSD 2.10 M

URFGS 1.99

UNILASALLE 0.10

UNB 0.47

GO1 projectUSD 0.18 M

UFG 0.18

Chart 1 - Distribution of resources invested in ISTs in Brazil, by state (USD M)




Addenda

2.2 R&D investments abroad

Of the ten ongoing R&D projects abroad, five consist in partnerships

with business R&D centers8 and another five in partnerships with ISTs. In

the case of partnerships with other companies, Vale has invested around

USD 112.06 million. Vale has also invested around USD 20.81 million in

conjunction with some ISTs.

Among the projects developed with international ISTs, there is a project

that accounts for approximately USD 15 million currently underway

with the Commonwealth Scientific and Industrial Research Organization

(CSIRO) in Australia, one of the largest research institutions in the world.

As a global company, Vale also invests in the development of R&D projects in partnership with international institutions.

Chile and Wales are also represented, as Chart 2 shows, including

investments of USD 407,900 with the University of Chile, and USD

650,000 with the University of Bangor, respectively.

In the United States and Canada, partnerships involving companies have

been formed. In Canada, around USD 49 million have been invested in

the development of a project involving transportation solutions. In the

United States, there are four projects being developed in partnership

with three different companies, totaling more than USD 63.06 million in

investments.

8. Fonte: Vale (julho/2012).




Addenda

Chile

Universidad de Chile1 project - USD 0.41 M

Canada

Partner company1 project - USD 49.00 M

United States

Partner companies4 projects - USD 63.06 M

Wales

Bangor University1 project - USD 0.65 M

Australia

University of Queensland1 project - USD 1.15 M

CSIRO1 project - USD 15.00 M

Total ValueUSD 132.87 M

47.5%

36.9%

0.5%

14.9%

0.3%

DET CRC1 project - USD 3.60 M

Chart 2 - Distribution of R&D projects abroad, by country.

Source: Vale (2012)




Addenda

2.3 The profile of Vale’s portfolio of R&D projects carried out by means of external partnerships

Types of research

In order to analyze the R&D project portfolio, Vale classifies these

projects into three different types of research, according to the concepts

laid out in the Frascati Manual : basic research, applied research and

experimental development.

Of the 161 R&D projects, 110 can be classified as applied research, with

the purpose of generating new knowledge in the solution of scientific

and technological challenges specific to the company’s operations. These

projects have required investments of approximately USD 66.54 million.

As can be seen in Chart 3, the 14 experimental development projects

account for 59.9%, or more than USD 132.71 million, of the total

resources. The greater share of R&D investments in these projects stems

from the fact that they often involve the actual implementation of some

large scale equipment.

Distribution of projects and of their respective investments according to the types of research and the characteristic of the projects

Chart 3 Percentage distribution of investment values, by type of research

Source: Vale (2012)

9. Frascati Manual 2002: Proposed Standard Practice for Surveys on Research and Experimental Development, 6th Ed., 2002.

Experimental Development: 59.9%14 projects - USD 132.71 M

Applied Research: 30.0%110 projects - USD 66.54 M

Basic Research: 10.1%37 projects - USD 22.48 M




Addenda

Chart 4 - Percentage distribution of values invested, by characteristic of the project

Source: Vale (2012)

10. Fonte: Vale (julho/2012).

Basic research, in turn, is associated with studies that generally do

not seek immediate application and, therefore, do not include actual

field trials. Accordingly, basic research receives a less significant

volume of resources than other types of research (USD 22.48 million,

approximately). Nevertheless, 37 R&D projects are being sponsored,

confirming Vale’s long-term commitment to the advance of new and

original scientific knowledge in areas of interest to the company.

Characteristic of the projects

In addition to the different types of research, R&D projects also have

different characteristics, which correspond to the level of development

of the technology. The characteristic of the project is defined according

to its expected impact on the markets and the businesses in which the

solutions and technologies arising from R&D projects will be applied.

Accordingly, projects can be classified as “incremental”, “new platform”

or “disruptive”.

In Chart 4, we can see that 62 projects were classified as incremental

and have so far received 23.96 million, or 10.8%, of the total resources

invested in ISTs or other companies .

Projects defined as “new platform”, currently consisting of 78 research

projects, have received approximately USD 51.97 million, more than

twice the amount received by incremental projects, since the purpose

of this type research project is to come up with emerging technological

solutions that will create competitive advantages for the company.

Finally, we can observe the projects defined as disruptive in Chart 4,

which, although in smaller quantity, received the largest volume of

resources, compared to the other categories, invested by Vale (USD

145.80 million, approximately), or more than 65.8% of the total. It

demonstrates the company’s concern with investing in projects that

create solutions for the future, since these projects are related to the

development of new technological routes that lead to major changes in

the structure of the mining industry.

Disruptive: 65.8%21 projects - USD 145.80 M

Incremental: 10.8%62 projects - USD 23.96 M

New Platform: 23.4%78 projects - USD 51.97 M




Addenda

2.4 Thematic Distribution of R&D projects

Areas of Knowledge

From a thematic standpoint, the projects are classified into different

areas of knowledge11. We can observe in Chart 5 that the general area of

knowledge entitled “Engineering” stands out for having received almost

80% of the investments, with 66 projects accounting for approximately

USD 177.62 million. It is seen that the projects classified in the areas

of “Mechanical Engineering”, “Chemical Engineering”, “Electrical

Engineering” and “Mining Engineering” have received a greater volume

of investments when compared to the other “Engineering” areas

The R&D projects will be presented in three different types of classification: areas of knowledge; business type and minerals; and by mining chain processes and support activities.

The general area “Physical Sciences” also deserves to be highlighted as

it attracted investments of approximately USD 18.03 million, distributed

over 31 projects. Most of the resources invested in this general area, USD

12.26 million, have been directed to Geoscience projects.

The general area “Biological Sciences” area has attracted 33 projects,

distributed among the following areas: “Biochemistry”, “Zoology”,

“Ecology”, “General Biology”, “Microbiology” and “Botany”.

11. The classification of projects by area of knowledge complies with the criteria used by the National Science and Technology Development Council (CNPq). According to these criteria, the general “Multidisciplinary” area includes projects in the “Interdisciplinary”, “Science and Mathematics Teaching”, “Matter” and “Biotechnology” areas. For this catalog, only the “Interdisciplinary” and “Biotechnology” areas belong to this scope. The “Interdisciplinary” area, in turn, corresponds to projects classified in more than one area of knowledge.




Addenda

Chart 5 – Distribution of investments, by General Knowledge Area and Area (USD M)

Source: Vale (2012)

Electrical Eng.

Chemistry

0 14 28 42 7056

ENGINNERING66 projectsUSD 177.62 M

0 14 28 42 7056

58.44

54.0740.99

16.29

3.38

2.00

1.11

0.730.57

Chemical Eng.

Transportation Eng.

Sanitation Eng.

Material and Metal Eng.

Electrical Eng.

Civil Eng.

Production Eng.

80.1%

PHYSICAL SCIENCES31 projects USD 18.03 M

12.26

2.93

2.28

0.42

0.14

Geosciences

Computer Science

Probability and Stat.

8.1%

BIOLOGICAL SCIENCES33 projects USD 11.86 M

4.57

2.52

2.28

1.35

0.91

0.23

Ecology

Microbiology

General Biology

Botany

5.3%

AGRICULTURAL SCIENCES22 projects USD 10.49 M

9.03

0.86

0.33

0.26

Fish Stocks and Fishing Engineering

Forestry Resources and Forestry Engineering

4.7%

Mechanical Eng. Biochemistry

Zoology

Physics

Agronomy

Agricultural Eng.

Naval and Oceanographic Eng. 0.05




Addenda

Chart 5 – Distribution of investments, by General Knowledge Area and Area (USD M)

Source: Vale (2012)

Anthropology

Education

Inter-disciplines

Biotechnology

Collective Health

0 14 28 42 7056

APPLIED SOCIAL SCIENCES1 projectUSD 1.28 M

1.28

0.6%

HUMANITIES2 projects USD 0.58 M

0.39

0.19

0.3%

HEALTH SCIENCE1 projectUSD 0.06 M

0 20 40 60 120

0.08%

80 100

MULTIDISCIPLINARY5 projectsUSD 1.81 M

0.82%

0.06

1.62

0.19

Architecture and Urbanism




Addenda

The projects classified in the General Areas have been distributed

geographically, as can be seen in Map 3. Table 2 specifies the number

of projects and amount of resources invested in the general areas of

knowledge on a region-by-region basis.

As can be observed, the Southeastern region is responsible for most

resources invested, with approximately USD 53.30 million invested in 103

research projects. As previously commented, Vale-FAPESP and FAPEMIG

partnerships contribute significantly to these numbers. In this region,

the resources are distributed among the eight General Knowledge Areas,

with an emphasis on “Engineering” (USD 27.25 million), with more than

half of the total invested; followed by: “Biological Sciences” (USD 8.81

million); “Agricultural Sciences” (USD 8.15 million); and “Physical Sciences”

(USD 7.84 million).

With 38 projects and around USD 20.81 million invested, the northern

region has the highest amount invested in “Engineering” (USD 8.81

million) and “Physical Sciences” (USD 5.38 million).

Southeast North Northeast South Midwest

PROJECTS VALUE PROJECTS VALUE PROJECTS VALUE PROJECTS VALUE PROJECTS VALUE

Agricultural Sciences 18 8.15 4 2.33 - - - - - -

Engineering 40 27.25 14 8.81 1 11.88 3 1.56 - -

Physical Sciences 18 7.84 7 5.38 - - 2 0.56 3 0.64

Applied Social Sciences 0 0.34 1 0.94 - - - - - -

Multidisciplinary 3 0.65 1 0.01 - - - - - -

Biological Sciences 22 8.81 10 2.94 - - 1 0.10 - -

Humanities 1 0.19 1 0.39 - - - - - -

Health Sciences 1 0.06 - - - - - - - -

103 53.30 38 20.81 1 11.88 6 2.22 3 0.64

Table 2: Geographic distribution of the resources invested in Brazil, by General Area of Knowledge (USD M)

Source: Vale (2012)




Addenda

Map 3 – Geographical and percentage distribution of the resources invested in Brazil, by General Area of Knowledge

Source: Vale (2012)

Applied Social Sciences

Agricultural Sciences

Engineering

Physical Sciences

Multidisciplinary

Biological Sciences

Humanities

Health Sciences

NE

1 projectUSD 11.88 M

SE


S


N


CO





Addenda

In the Northern region the Vale-FAPESPA Agreement has a key role, since

Pará is an important state for Vale´s operations.

In the Northeastern region, the general “Engineering” area accounts

for the total amount invested in a single research project, with

approximately USD 11.88 million.

In the Southern region, research projects are distributed among three

main areas, accounting for more than USD 2.22 million in investments; of

this amount, three “Engineering” projects account for approximately USD

1.56 million.

In the Midwest region, investments are geared toward three projects

classified in the general “Physical Sciences” area, accounting for around

USD 0.64 million of the resources.

Business and mineral type

In addition to the areas of knowledge, R&D projects presented here

were also classified according to the “type of business” or “mineral type”.

For this study, the following categories were considered as “type of

business”: environment and sustainability; logistics; health and safety;

and a “transversal” category, which includes projects that fall into more

than one Vale business areas. With regards to the “mineral type”, the

following categories were considered in order to classify R&D projects:

iron ore, copper, nickel, manganese, coal, phosphorus and potassium.

As can be seen in Chart 6, the greatest volume of resources, amounting

to approximately USD 66.50 million, was invested in projects that involve

the “transversal” business type, which indicates that often the objective

of contracted projects are relevant to more than one business areas of

the company.

It is also relevant to emphasize that no less than 59 research projects

are categorized as “environment and sustainability”, representing the

highest number of projects in the portfolio. This is a strong indication of

the company’s commitment in the search for solutions that contribute to

sustainable development.

With regards to the “mineral types” classification, iron ore occupies a

prominent position, as in addition to being the company’s core business

it occupies a strong position in Vale’s future business strategy. Thus most

of the investments, approximately USD 56.58 million, has been directed

to the 36 projects in this class.Photo: Prof. Dr. Catarina Toledo / UnB




Addenda

Chart 6 – Distribution of the invested resources, by business type and mineral type (USD M)

Source: Vale (2012)

Pota

ssiu

m

66.50

56.58

29.5525.74

20.7316.62

1.76 1.462.540.06

Tran

sver

sal

Iron

Ore

Copp

er

Nic

kel

Logi

stic

s

Man

gane

se

Phos

phor

us

Coal

Number of Projects

33 59 9 1 36 10 2 24 1

Hea

lth a

nd

Safe

ty

4

0.19

Envi

ronm

ent a

nd

Sust

aina

bilit

y

Type of Business Type of Mineral

TotalR&D Projects: 161Financial Resources: USD 221.73 M




Addenda

The number of projects classified by type of business and type of mineral

have been distributed geographically, as can be seen in Map 4.

The Southeast region has the largest number of projects, which are well

distributed in each of the classifications of “business type and mineral

type.” Table 3 specifies the number of projects and amount of resources

invested in each of the classifications by region.

The North region also has a significant volume of investments, with a

focus for those projects classified as “environment and sustainability”.

From a total of 38 research projects developed in this region, specifically

in the state of Pará, 22 correspond to this category, representing a total

of more than USD 10.34 million of resources invested in “environment

and sustainability”.

Finally, it is worth noting the funds invested in the Northeast on a project

in the area of “logistics”, valued at approximately USD 11.88 million.



Environment and Sustainability 36 15.28 22 10.34 - - 1 0.13 - -

Logistics 4 1.77 4 2.97 1 11.88 - - - -

Health and Safety 1 0.19 - - - - - - - -

Transversal 21 8.47 4 2.65 - - 3 1.76 2 0.36

Coal 1 0.75 1 0.45 - - 1 0.19 - -

Copper 8 14.41 - - - - 1 0.14 - -

Phosphorus 2 0.88 1 0.17 - - - - - -

Manganese 1 1.39 1 0.36 - - - - - -

Iron Ore 27 9.36 5 3.87 - - - - 1 0.29

Nickel 1 0.73 - - - - - - - -

Potassium 1 0.06 - - - - - - - -

103 53.30 38 20.81 1 11.88 6 2.22 3 0.64

Table 3: Geographic distribution of the resources invested in Brazil, by type of business and type of mineral (USD M)

Source: Vale (2012)

Type

of B

usin

ess

Type

of M

iner

al




Addenda

Map 4 – Geographical and percentage distribution of the resources invested in Brazil, by type of business and type of mineral (USD M)

Source: Vale (2012)

Manganese

Nickel

Iron Ore

Environment and Sustainability

Transversal

Copper

Logistics

CoalHealth and Safety

Potassium

Phosphorus

NE


SE


S


N


CO





Addenda

Mining chain processes and support activities

R&D projects can also be classified according to the mining chain

processes and support activities related to these processes. For

this catalog, the following classifications were considered: energy,

exploration, logistics, environment , planning and mining, mineral

processing and productization.

The “planning and mining” processes stand out as they are clearly Vale’s

main business activity, as can be seen in Chart 7, thus accounting for the

largest amount of funds, more than USD 94.66 million.

Subsequently, the 82 projects classified as “environment” processes are

worthy of mention, accounting for approximately USD 52.58 million.

As for “logistics”, in addition to the R&D projects directed to the

development of logistical operations in general, resources for ports and

railroad logistics were also considered. Investments in this class account

for approximately USD 17.13 million, spread among 11 projects.

Finally, it is also worth noting the six “productization” projects, which aim

to improve final products, as in the case of pellets for the production of

iron ore. These projects are underway and account for approximately

USD 3.17 million of the resources invested.

12. It is important to note that, as with “business type and mineral”, the terms “environment” and “logistics” also appear in this classification. This is justified by the fact that it includes support activities related to processes in the mining production chain.

Photo: Prof. Dr. Welitom Borges / UnB




Addenda

Chart 7 - Distribution of resources invested, by mining supply chain process and support activity (USD M)

Source: Vale (2012)

52.58

37.41

17.13

8.62 8.163.17

Plan

ning

and

M

inin

g

Envi

ronm

ent

Min

eral

Pr

oces

sing

Logi

stic

s

Ener

gy

Expl

orat

ion

Prod

uctiz

atio

n

Number of Projects

10 82 27 11 13 12 6

94.66 TotalR&D Projects: 161Financial Resources: USD 221.73 M




Addenda

Map 5 shows the geographical distribution of the research projects in

mining chain processes and related support activities in the Southeast

region, involving the seven classifications identified above: “energy”,

“exploration”, “logistics”, “environment”, “planning and mining”,

“mineral processing” and “productization”. As can be seen in Table 4,

“environment” has attracted a large number of projects and investments,

with 53 projects accounting for approximately USD 19.71 million . The

“mineral processing” category comes next, accounting for USD 16.64

million, which corresponds to 31.2% of the resources of the Southeast

region.

In the Northern region, there is also a large volume of investments in the

“environment” category, accounting for more than USD 12.45 million,

spread over 25 projects.

It is seen that in the Northeastern region, USD 11.88 million is earmarked

to a single project in the “logistics” process.



Environment 53 19.71 25 12.45 - - 3 0.42 - -

Mineral Processing 17 16.64 5 3.27 - - - - 1 0.29

Exploration 5 2.98 2 1.12 - - 2 0.56 2 0.36

Productization 5 2.73 1 0.45 - - - - - -

Planning and Mining 5 1.36 - - - - 1 1.24 - -

Energy 12 7.61 1 0.54 - - - - - -

Logistics 6 2.27 4 2.97 1 11.88 - - - -

103 53.30 38 20.81 1 11.88 6 2.22 3 0.64

Table 4: Geographic distribution of the resources invested in Brazil, by mining chain process and support activity (USD M)

Source: Vale (2012)




Addenda

Map 5 - Geographical and percentage distribution of the resources invested in Brazil, by mining chain process and support activity

Source: Vale (2012)

Productization

Environment

Mineral Processing

Exploration

Planning and Mining

Energy

Logistics

NE


SE


S


N


CO





Addenda

2.5 R&D project networks

Vale-FAPs Network

The development of partnerships among ISTs is closely linked to the

level of cooperation among the researchers involved. Accordingly, the

network configuration13 facilitates interaction between its components

and, therefore, contributes to the execution of research.

The agreements entered into by Vale and the State Research Foundations

of Minas Gerais, Pará and São Paulo, have raised financial resources for

114 R&D projects, including 59 that are being developed through 28

inter-state partnerships.

Figure 1 is a diagram illustrating the Vale-FAPs Program, formed by the

ISTs network. The level of interaction14 as measured by the number of

R&D projects per institution.

Integration by means of research networks intensifies the exchange of knowledge among research groups at different Brazilian ISTs

With 13 projects under development, UFPA, in Pará, stood out as the

main component of the established partnerships, mainly executing

projects in conjunction with UFMG and UFOP, both from the state of

Minas Gerais.

UFMG, with eight projects, and USP, with six projects, are also

prominently at the center of the network, representing Minas Gerais and

São Paulo states, respectively.

There is also a greater variety of ISTs in Minas Gerais, with 11 institutions.

Through partnerships with ISTs in São Paulo and Pará, these institutions

are involved in the development of 27 R&D projects, in the form of

networks.

13. “A network can be defined as an organization loosely consisting of several groups linked together in different ways. Networks are typically “non-physical” centers that rely on advanced communication systems to encourage collaboration among participants with complementary skill sets. Each collaborative unit has a flexible degree of participation. In general, a network has several sponsors and its service life is limited to the time needed to achieve its goals. “ (WEISZ & ROCO, 1996)14. The different levels of interaction are indicated by the thickness of the lines linking the ISTs.




Addenda

Source: Vale (2012)

Figure 1 - Representation of Institutes of Science and Technology (ISTs) in the Vale-FAPs Program network

BIODIVERSITAS

UFMG

UFV

UFLA

UNIFAL

EMBRAPA

UFU

PUC MG

UFJF

IFTMG

UNIFESP

USP

UNESPJABOTICABAL

UNICAMP

UFSCAR

CTBE

INPE

ITA

UFPA

MPEG

EMBRAPA

UNESPRIO CLARO

UFOP

Minas Gerais 27 projects

São Paulo15 projects

Pará17 projects




Addenda

Urbis Amazon Network

The project known as “Urbis Amazon” is coordinated by the Vale

Institute of Technology (ITV-DS) for Sustainable Development, in Pará,

the National Institute for Space Research (INPE) in São José dos Campos,

in the state of São Paulo, as well as nine Brazilian ISTs. Accordingly, it

features a network structure that is different from that of the Vale-FAPs

Agreements, although the inter-institutional cooperative relationship is

still decisive in the development of research.

In the “Urbis Amazon”, the intra-and inter-institutional network is

formed by a set of nine nuclei with established scientific objectives and

managerial tasks (see Table 5).

Each nuclei includes more than one IST, ensuring greater interaction

between the institutions of each nuclei.

Figure 2 presents a simplified network configuration for the “Urbis

Amazon” project. ITV, in Pará, and INPE, in São Paulo, are responsible for

coordinating the nine nuclei.

It is interesting to note that this project highlights the cooperation

between researchers in the States of Pará, Minas Gerais and São Paulo,

and includes the joint access to laboratories and infra- structure as well

as co-supervision of graduate students.

Nucleus Features

1 Integration and Space IT

2 Regional Economic Analysis – Macroscale

3 Urban Evolution Analysis – Mesoscale

4 Demographic Analysis – Mesoscale

5 Landscape Analysis

6 Micronetwork Analysis – Structural Characterization

7Micronetwork Analysis – Functional

Characterization

8 Computational Modeling Environment

9 Statistical Modeling applied to Space and Time

Table 5: List of Nuclei defined for the Urbis Amazon Network

Source: Vale (2012)




Addenda

Minas GeraisSão PauloPará Rio de Janeiro Paraná

INPE SJC ITVGeneral Coordination

Nuclei

UFPA FGV

FIOCRUZ

ITV-DS

INPE Amazônia INPE SJC

UFMGINPE Amazônia INPE SJC

ITV UFMG

UFPA FGVFIOCRUZ

INPE SJCINPE SJC UFPA FGV

ITVINPE Amazônia

UNICAMP FIOCRUZ

UFPR INPE SJCUFOP INPE SJCFGVINPE SJC

1 2 3

4 5 6

7 8 9

Figure 2 - General diagram of the Urbis Amazon Network management

Source: Vale (2012)

INVESTMENTS IN TRAINING OS SPECIALIZED HUMAN RESOURCES 37



Addenda

Investments in training of specialized human resources03

Analysis of investments in research scholarships15

This chapter presents an analysis of fellowships awarded by Vale to

sponsor the training of specialized human resources. The awards have

been granted both through specific fellowship proposals or by means of

R&D projects, as described in the previous chapter.

In all, approximately USD 12.95 million16 was invested in 821 research

scholarships, including 77 (USD 1.61 million) through calls for proposals

and 744 (USD 11.34 million) through 125 R&D projects. Only 36 projects

have not received funds for research scholarships

It should also be noted that 55 scholarships were funded involving

partnerships between national and international ISTs, such as the 42

research scholarships funded awarded under an agreement between the

Federal University of Viçosa (UFV) and the Sultan Qaboos University in

Oman.

Initially, the geographic distribution of grants per Brazilian State and

corresponding ISTs will be presented; the scholarships will then be

classified according to their modalities.

15. The types of research scholarships considered for this catalog are: Doctorate, Master’s, Post-Doctorate, technical support, visiting fellow, regional scientific and technological development, scientific research, technological and industrial devel-opment, technological and industrial research, science and technology management, technical training and visiting specialist. Descriptions of these types are presented in table 7 in the addendum.16. The values do not consider the amounts related to the initiatives reported in Chapter 3.3 (Science Without Borders Program; National Program to Stimulate Engineer Training - Engineering Training; and Academic Cooperation for Enhancement and Technical Training of Engineers of the Republic of Mozambique);



Addenda

INVESTMENTS IN TRAINING OS SPECIALIZED HUMAN RESOURCES 38 Photo: Lucas Lenci / Vale Agency




Addenda

3.1 The investments in research scholarships in Brazil

In keeping with the logic of volume of resources observed in the

geographical distribution of R&D projects, Map 6 shows that the majority

of the research scholarships were awarded to ISTs in Minas Gerais, Pará

and São Paulo. These states have received almost USD 11.92 million to

sponsor 772 research scholarship awards. Much of these investments are

a consequence of the Vale-FAPs agreement, which resulted in more than

USD 7.12 million being applied to 621 scholarship awards.

There is also a considerable number of research scholarships in the State

of Pará, especially the 367 grants to the Federal University of Pará (UFPA),

as shown in Chart 8.

The research scholarships were awarded in 11 Brazilian States, distributed among the five geographical regions of the country

It is also interesting to note the diversified distribution of research

scholarships in Minas Gerais. The 234 scholarships in this State are

distributed among 15 ISTs, especially the Federal University of Ouro Preto

(UFOP), the Federal University of Viçosa (UFV) and the Federal University

of Minas Gerais (UFMG).




Addenda

Map 6 - Distribution of research scholarships in Brazil

Source: Vale (2012)

MG

ES

RJ

SP

SC

PA

429 scholarshipsUSD 3.82 M






PR

1 scholarshipUSD 0.02 M

PE

1 scholarshipUSD 0.02 M

RS


DF


TotalResearch scholarships: 821Financial Resources: USD 12.95 M




Addenda

Chart 8 - Distribution of research scholarships among ISTs in Brazil, by state

Source: Vale (2012)

MG

PA429 scholarshipsUSD 3.82 M

234 scholarships USD 6.28 M

0 185 370

6656

30

25

109

7

6555

3

33

1

UFMG

UFV

UFLA

UNIFEI

CEFET BH

UNIFAL

EMBRAPA MG

BIODIVERSITAS

UFOP

FIOCRUZ MG

PUC MG

UFU

UFSJ

CDTN

UFJF

UFPA

MPEG

UEPA

EMBRAPA PA

INPE AMAZÔNIA

367

3115

15

1

SP 109 scholarshipsUSD 1.82 M

0

41

15

13

11

9

8

7

5

USP

UNESP

INPE SP

ITA

UNICAMP

CTBE

IPT

UNIFESP

RS21 scholarshipsUSD 0.52 M

URFGS 20

UNILASALLE 1

185 370




Addenda

Source: Vale (2012)

RJ 8 scholarshipsUSD 0.10 M

3

3

2

UFRJ

PUC RJ

CETEM

DF4 scholarshipsUSD 0.08 M

UNB 4

PE1 scholarshipUSD 0.02 M

UFRPE 1

PR1 scholarshipUSD 0.02 M

UFPR 1

0 185 370 0 185 370

ES9 scholarshipsUSD 0.25 M

UFES 9

SC5 scholarshipsUSD 0.06 M

UFSC 3

UNESC 2

Chart 8 - Distribution of research scholarships among ISTs in Brazil, by state




Addenda

3.2 Research scholarships, by type.

The scholarships have been separated into four groups: undergraduate,

graduate, research, and companies. The first three correspond to

research activities conducted in universities, while the latter refers

to personnel involved in the implementation of R&D projects within

companies.

As indicated by Chart 9, there are 333 undergraduate research

scholarships, accounting for 40.6 percent of the 806 scholarships in the

portfolio.

Master’s and Doctoral students account for 300 scholarships and more

than USD 6.73 million invested, representing just over half of the total.

Distribution of research scholarships by type, with emphasis on undergraduate research, Master’s and Doctoral degrees

As for personnel engaged in research within universities, Post-Doctoral

and Technical Support scholarships, account for 32 (USD 2.31 million) and

77 scholarships (USD 1.09 million), respectively.

It is seen in Chart 9 that most scholarships for R&D in companies, belong

to the so-called “technological and industrial development (DTI)”, with 36

scholarships accounting for investments of USD 1.38 million.




Addenda

Chart 9 - Distribution of research scholarships, by type

Source: Vale (2012)

Tech

nica

l Sup

port

89

211

32

77

3

333

11

3614

3

Post

-Doc

tora

te

Visi

ting

Rese

arch

er

Regi

onal

Sci

enti�

c an

d Te

chno

logi

cal

Dev

elop

men

t

Research

5 1 6

Doc

tora

te

Mas

ter’s

Graduate

Und

ergr

adua

te R

esea

rch

Undergraduate

Tech

nolo

gica

l and

In

dust

rial D

evel

opm

ent

(DTI

)

Tech

nica

l Tra

inin

g

Scie

nce

and

Tech

nolo

gy

Man

agem

ent

Visi

ting

Spec

ialis

t

Tech

nolo

gica

l and

In

dust

rial R

esea

rch

(ITI)

Companies

Hum

an R

esou

rces

Tr

aini

ng

TotalResearch Scholarships: 821




Addenda

16Agronomy

3

3

3

1

1

2

1

1

1

1

1

2

2

3

13

5

Agricultural Engineering

Fish Stocks and Fishing Engineering

Biochemistry

Ecology

General Biology

Zoology

Geosciences

Chemistry

Physics

Probability and Statistics

Mathematics

Education

Mining Engineering

Mechanical Engineering

Chemical Engineering

Electrical Engineering

Civil Engineering

Transportation Engineering

Naval and Oceanographic Engineering

Sanitation Engineering

Inter-disciplines

5

78

5

5

Chart 10 – The number of Doctoral scholarships, by General Area and Area of Knowledge

Source: Vale (2012)

The 89 Doctoral and 211 Master of Science scholarships can be analyzed

according to the areas of knowledge.

It is seen in Chart 10 that the largest number of Doctoral grants has

been awarded to the “Engineering” general area. This includes a total

of 31 scholarships distributed among eight areas, with “Mechanical

Engineering” being the most representative.

In second place among the general areas, 26 Doctoral scholarships have

been awarded to “Physical Sciences”, including 11 Doctoral grants for

projects in the “Geosciences” area.

It is interesting to note that, considering the distribution by knowledge

area, the largest number of scholarships has been awarded to Doctoral

degrees in “Agronomy”, which belongs to the “Agricultural Sciences”

general area. This also includes “Agricultural Engineering”, “Fish Stocks

and Fishing Engineering”.


Biological Sciences

Physical Sciences

Humanities

Engineering

Multidisciplinary

GENERAL AREAS




Addenda

Chart 11 – The number of scholarships for Master’s degrees, by General Area and Area of Knowledge

Source: Vale (2012)

With regards to Master degrees, Chart 11 shows that almost half of

scholarships have been awarded to projects in the “Engineering”

general area, with prominence for the “Chemical Engineering” and “Civil

Engineering” areas, with 25 and 20 scholarships, respectively.

The “Physical Sciences” general area is in second place, according to

the number of scholarships. Geosciences is the area with the greatest

concentration, with 16 Master’s scholarships.

The largest number of Master scholarships, 26 in total, has been directed

to “Agronomy” and this follows the same trend observed for Doctoral

degrees.

Finally, a significant portion of the Master scholarships has been granted

to the “Biological Sciences” general areas, with 32 awards, 12 of them

being dedicated to projects in the area of “Zoology”.

26Agronomy

Forestry Resources and Forestry Engineering

Biochemistry

Ecology

General Biology

Zoology

Geosciences

Chemistry

Physics

Probability and Statistics

Computer Science

Education

Inter-disciplines

25

1

21

1

1

11

22

4

126

54

7

4

16

2018

1312

13

77

Microbiology

Botany

Genetics

Mechanical Engineering

Chemical Engineering

Electrical Engineering

Civil Engineering

Transportation Engineering

Naval and Oceanographic Engineering

Sanitation Engineering

Mining Engineering

Material and Metal Engineering

Oceanography

1


Biological Sciences

Physical Sciences

Humanities

Engineering

Multidisciplinary

GENERAL AREAS




Addenda

3.3 Partnerships under development for HR training

In addition to the funds previously described to sponsor research

projects (including scholarships), it is noteworthy to analyse three other

partnerships dedicated to educational projects. These projects are:

Science Without Borders Program; National Engineering Program; and

Academic Cooperation for Enhancement and Technical Training of

Engineers of the Republic of Mozambique.

With about USD 28 million from Vale, USD 2.1 billion from the Federal

Government and USD 700 million from other other private and state-

owned companies, the Science Without Borders Program began in 2011

and by 2015 intends to finance up to 101 thousand undergraduate and

graduate scholarships for students to conduct their studies abroad,

always in top universities. By supporting this initiative, Vale aims to

contribute to the training of specialized human resources in areas of its

interest, through international student exchange.

National Engineering Program, is being conducted through

a partnership, between Vale and the Conselho Nacional de

Desenvolvimento Científico e Tecnológico [National Council for Scientific

Vale also invests17 in the training of specialized human resources through external partnerships, the Science Without Borders Program; National Engineering Program (FORMA ENGENHARIA); and Academic Cooperation for Enhancement and Technical Training of Engineers of the Republic of Mozambique

and Technological Development] (CNPq), the goal is to reduce the

dropout rate in engineering courses and attract high school students

for the engineering profession. The public Call for Proposals attracted

more than 700 projects, of which just over 500 were approved. A total

of USD 14.3 million have been granted to these projects, which involve

2,634 scholarships for undergraduate, high school and technical course

students, as well as high school teachers, in addition to bench fees to

support laboratories.

Finally, the agreement between Vale, Escola Politécnica da Universidade

de São Paulo (EPUSP) and the Instituto Superior Politécnico de Tete

(ISPT) in Mozambique, seeks to improve the quality of ISPT lecturers

and engineers, including some employed by Vale. At first, lecturers

from the Mineral and Petroleum Department of EPUSP are giving short

refresher courses, with the possibility of subsequently starting Masters-

level courses. The partnership began formally in 2012and the first phase

should be completed in 2013, with completion expected for 2015.

Vale has contributed USD 97 thousand to this program and EPUSP has

contributed USD 15.4 thousand.

17. The financial resources reported in this chapter are not inserted in the scope.



Addenda

Projects and Interviews

Featured R&D projects

Generation of prospective models for iron ore mining in the Carajás Mining Province 49Prof. Dr. Adalene Moreira Silva - University of Brasilia (UnB)

Climatology and the impacts of climate change on Vale operations in the Eastern Amazon 51Prof. Dr. Bergson Cavalcanti de Moraes - Vale Institute of Technology (ITV)

Laser system for drilling rocks 53Professor Arthur Martins Barbosa Braga - Pontifical Catholic University of Rio de Janeiro (PUC-Rio)

Recovery of contaminated areas and extraction of mine tailings 55 Prof. Dr. Cláudio Augusto Oller do Nascimento – University of São Paulo (USP)

Moacir José Buenano Macambira 59Scientific Director of the Amazônia Paraense Research Foundation (FAPESPA)

José Policarpo Gonçalves de Abreu 58Scientific Director of the Minas Gerais Research Foundation (FAPEMIG)

Carlos Henrique de Brito Cruz 60Scientific Director of the São Paulo Research Foundation (FAPESP)

Interviews

48

49

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sProjects and

Interviews03 Training of

human resources02 R&D projects 01 IntroductionContentsStart Indicators Glossary and Addenda

The main purpose of the project entitled “Generation of prospective

models for iron ore mining in the Carajás Mining Province” is to analyze

and characterize the iron ore in this region, using a multimethod

approach, in an attempt to create forward-looking parameters for the

generation of prospective models for the exploration of iron ore.

Research activities are focused on the application of a geophysical

methodology, based on data obtained from the airborne and

ground geophysical surveys, as well as on core samples, rock physical

properties, integration of geophysical, remote sensing, reflectance

spectroscopy and geological data that will result in models to support

making decisions on iron ore exploration in the areas studied.

From this multi-method approach, through the analysis of multi-

A project being developed by the University of Brasilia (UnB), in partnership with the Federal University of Pará (UFPA) and the Federal University of Rio de Janeiro (UFRJ), coordinated by Prof. Dr. Adalene Moreira Silva, with the purpose of analyzing and characterizing iron ore in the Carajás Mining Province

Generation of prospective models for iron ore mining in the Carajás

source data and the development of new analytical and integration

tools, we intend to create provisional parameters for the generation

of prospective models for iron ore in the Carajás region and to

contribute to the generation of new criteria for data integration in this

environment.

This methodology was developed with the contribution of teams

from Vale and other higher educational institutions thus ensuring

the applicability in the real iron ore near mine exploration. The

opportunity to have a multi-disciplinary team dedicated to the project

ensures successful results and strengthens the scientific-technical

cooperation networks.

Photo: Prof. Dr. Catarina Toledo / UnB

50

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“Developing this research is a real, effective and efficient opportunity for working with technologies applied to mining. I hope that the Vale Institute of Technology keeps growing! It is essential that we promote opportunities such as these. If the partnership is fruitful for both parties, everyone can grow with regards to product quality, patents and future techniques.”

Prof. Dr. Adalene Moreira Silva

During this work we are adopting practices that represent the state

of the art of current knowledge. It will be possible to know in detail

the variables that characterize the ore types and their host rocks,

taking into consideration their mineralogy, physical properties, spatial

distribution, volume and quality.

According to Prof. Dr. Adalene Moreira Silva, the project research

coordinator, Vale funding is fundamental for the development of this

type of study. With this investment, it has been possible to purchase

technological equipment essential for the project, thus contributing to

the advancement of scientific knowledge in this area.

With regards to the training of qualified human resources, Prof. Dr.

Silva emphasizes that the research is a unique opportunity for Master

and Doctorate students to apply in the field work, the techniques they

have learned in the classroom.

Students engaged in this research will also learn to work as a team and

have the opportunity to get to know and understand how a company

like Vale works, including its structures, roles and functions.

Prof. Dr Silva stresses that this learning experience has only been

possible thanks to the cooperative relationship established with Vale

managers, who have proven to be open-minded in their appreciation

of scientific development. Manager Luciano Assis from Vale is

developing his Master´s thesis as a member of the research team.

The satisfaction of teachers and researchers comes from knowing

that investments in iron ore prospecting may bring important

results for the company, through the use of new technologies and

methodologies aimed at measuring the quality of the ore.

Research, investment, and partnership between higher education

institutions - such as UnB, UFPA and UFRJ - and Vale benefit the

production process, offset environmental impacts and create a

network of scholars and professionals trained to face current and

future challenges of the labor market.

51

Feat

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sProjects and



The main goal of the project “Climatology and impacts of climate

change on Vale operations in the Eastern Amazon region” is to

investigate climate variability over the last 30 years in the Eastern

Amazon, besides developing a prognosis regarding the volume and

the recurrence of such variability.

Throughout the development of the research, carried out in the region

between Carajás and São Luís do Maranhão, it was possible to detect

that climate change has intensified continuously during the period.

A project developed by ITV, coordinated by Prof. Dr. Bergson Cavalcanti de Moraes, in order to diagnose and forecast the climate changes in the regions where Vale operates.

Climatology and climate change impacts on Vale operations in the Eastern Amazon region

Amazon RainforestPhoto: Vantoen Pereira Jr / Vale Agency

52

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“Having privileged information about future events will no doubt minimize costs and help us better protect human life and the environment. Having information before it occurs is about being sustainable.”

Prof. Dr. Bergson Cavalcanti de Moraes

Because of these changes, diagnosed and forecast by the project,

Vale can plan its operations with a view to minimizing losses and

costs resulting from weather and climate effects, which directly affect

the production of iron ore. Rain alone, for example, is capable of

reducing iron ore production by up to 30%. Accordingly, obtaining

prior knowledge about weather patterns can be very important for the

company´s operations.

ITV has acquired twelve automatic weather stations for this project.

Two of them are hydrological stations that monitor river and rain levels

(in the headwaters and in the final sections of rivers). The other ten

stations measure temperature, humidity, wind and pressure data in the

locations selected for this study.

With this information, it is possible to forecast weather conditions on

an hourly, daily or even monthly basis.


Amazon RainforestPhoto: Vantoen Pereira Jr / Vale Agency

53

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The project “Laser System for Rock Drilling” aims to advance the

development of a laser drilling system for blasting operations. It

specifically aims to undertake experimental and theoretical studies

that may provide conditions for designing this system with regards

to the parameters of laser drilling operations and their interaction

with the rock, in addition to studying the implementation of an

integrated on-line monitoring sub-system of geometallurgical and

geomechanical properties of the formation being drilled.

This project contributes to the improvement, the efficiency and

sustainability of mining, and continues the line of research developed

and coordinated by PUC-Rio. It takes into consideration the various

technologies related to lasers based on semiconductors, fiber-optics,

gas or crystal, which have proven to be effective in rock drilling.

The research also reveals the possible advantages of laser drilling

A project developed by Pontifical Catholic University of Rio de Janeiro (PUC-Rio), in partnership with the Federal Technology University of Paraná (UTFPR), coordinated by Prof. Arthur M. B. Braga, to develop a laser system for rock drilling applications.

Laser system for rock drilling

Photo: Giancarlo Vilela de Faria / PUC Rio

54

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“In working in partnership with Vale, we are able to take the lab design and transfer it to the market in a much shorter timeframe.”

Prof. Arthur M. B. Braga

when compared with more traditional methods, such as: increased

drilling efficiency; reduction in the number of mobile mechanical

parts required in the drilling system; ability to drill through different

materials (rocks with different compositions, metals, etc.) without

the need to replace the drill bit; reduction in maintenance costs;

and reduction of risks of tectonic movement as there is no contact

between the bit and the surface to be drilled.


Photo: Rafaela Souza / Vale Institute of Technology Department

Photo: Edgar Sepúlveda / Vale Institute of Technology Department

55

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The main purpose of the project entitled “Rehabilitation of

contaminated areas and mineral extraction from mine tailings” is to

reclaim extensively mined areas, through the recovery of their tailings.

Accordingly, this project seeks to improve the environmental

conditions for the mining operations through the recovery of minerals

still contained in mine tailings.

In this connections, the project emphasizes four main objectives: (a)

to structure and assemble a testing ground to experiment with soil

and water remediation technologies; (b) to systematize the search

for microorganisms adapted to soil and water contamination by

heavy metals and hydrocarbons; (c) to implement bioremediation

technologies using adapted microorganisms; and (d) to appraise the

energy and economic requirements of the technologies.

A project developed by the University of São Paulo (USP), in partnership with Vale and BNDES, coordinated by Prof. Dr. Claudio Augusto Oller do Nascimento designed to reclaim mined areas and reuse metals contained in the mine tailings.

Recovery of contaminated areas and extracting minerals from mine tailings

Tailings Dam view at Mina do Sossego - Carajás/PAPhoto: Prof. Dr. Claudio A. Oller Nascimento / USP

56

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“An important factor for the development of this project is the creation of Brazilian technology. We already do outstanding basic research, however we need to move forward in the development of technology.”

Prof. Dr. Cláudio Augusto Oller do Nascimento

This research is based on the study of microorganisms that have

existed for millions of years and thrive in areas rich in copper,

and which are already fully adapted to this environment. These

microorganisms absorb and feed on this metal, and are characterized

by their high-capacity metabolisms.

Based on the above information, it is seen that the focus of this

project is to develop chemical and biological processes for copper

recovery and subsequently to extend these processes to an industrial

installation, with the perspective to attain considerable economic

return.

According to Prof. Oller, the project is very challenging for the fact

that it aims to develop a technology that can be used in a practical

way to offset environmental impacts and, at the same time, generate

economic value for the company. Thus, the country advances in

technological development and also gains prominence on the

international stage.

The research has been carried out at the Sossego mine in Carajás,

in the State of Pará, and includes the participation of about twenty

researchers from the Chemical Engineering Department of the

Engineering School and the Institute of Biomedical Sciences, at the

University of São Paulo.

According to the project coordinator, it would be virtually impossible

to perform this work without a partnership between the university and

Vale.


Tailings Dam at Mina do Sossego - Carajás/PAPhoto: Prof. Dr. Claudio A. Oller Nascimento / USP



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InterviewsInterviews with Scientific Directors of the State Research Foundations of Minas Gerais, Pará and São Paulo.

The Vale-FAPs Program have raised financial resources for 30 Institutes of Science and Technology (ISTs) in these regions, through 114 projects of R&D and 621 research scholarships.

Moacir José Buenano Macambira Scientific Director of the Amazônia Paraense Research Foundation (FAPESPA)

José Policarpo Gonçalves de Abreu Scientific Director of the Minas Gerais Research Foundation (FAPEMIG)

Carlos Henrique de Brito Cruz Scientific Director of the São Paulo Research Foundation (FAPESP)

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03 Training of human resources02 R&D projects 01 IntroductionContentsStart Indicators Glossary and

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56 projects

163 scholarships

17 Science and Technology Institutions in the state of Minas Gerais

José Policarpo G. de Abreu, FAPEMIG Scientific Director, confirms the importance of the partnership between Vale and the Research Foundations as an engine for important advances.

Vale-FAPEMIG Agreement

“For the ISTs and their researchers, these partnerships enable them to apply and direct the multidisciplinary scientific pool of knowledge and also the installed base of RD&I…” says Abreu

“A company like VALE, which has a strong and consolidated brand

within the global market, is constantly in search of innovation”.

This statement expresses the vision of José Policarpo G. de Abreu,

FAPEMIG Scientific Director, who believes in the strategic importance

the establishment of partnerships between Vale and the ISTs to be of

strategic importance, in order to search for solutions for the company

in the light of scientific knowledge.

“For the ISTs and their researchers, these partnerships enable them

to apply and direct the multidisciplinary scientific pool of knowledge

and also the installed base of RD&I in order to contribute to the

scientific and technological development of the company and, more

importantly, to the development of the nation itself”, says Policarpo.

The university-industry relationship has advanced both from the

standpoint of partnerships to conduct research, development and

innovation (RD&I), as well as with regards to the advancement of legal

aspects, especially with respect to intellectual property management.

The joint public and private sector participation, involving universities,

companies and the government – the so-called triple helix – has been

important for innovation processes, both in Brazil and in many other

countries.

“In the case of Brazil – and especially in the state of Minas Gerais,

thanks to FAPEMIG initiatives – we have advanced significantly,

although we are very aware that there is still a lot to be done in this

area,” says Prof. José Policarpo.

The partnership between Vale and the FAPs represents an important

advance and it paves the way for other private companies in the

country to follow this relationship model.

“Through an equalization of procedures and their relentless pursuit

of harmony, VALE and the FAPs have demonstrated that it is possible

to achieve important results through a new model that, despite the

involvement of risks, will surely lead the country to a level desired

by all those committed to its socioeconomic development,” says

Policarpo.

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34 projects

353 scholarships

4 Science and Technology Institutions in the state of Pará

Professor Moacir José Buenano Macambira, from the Federal University of Pará (UFPA) and Scientific Director of the Amazônia Paraense Research Foundation (FAPESPA), notes the importance of the relationship between the government, teaching and research institutions and companies.

Vale-FAPESPA Agreement

“Companies can bring demands to the academic sphere in order to stimulate scientific research and improve the effectiveness of their processes”

says Moacir Macambira

As mining companies are generally integrated into the domestic and

international markets, they have the sensitivity to detect short term

trends and discern directions for the sector with regard to innovations

and demands in scientific research. This vision is established and it is

in accordance with the thinking of Moacir Macambira, the FAPESPA

Scientific Director.

“Companies can bring demands to the academic sphere in order to

stimulate scientific research and improve the effectiveness of their

processes and procedures with regards to forecasting, exploration

and exploitation of minerals. The company will certainly have a return

on its investments in the form of innovation in its activities and a

consequent increase of competitiveness”, says Moacir Macambira.

The so-called Vale-FAPs is an example of collaboration on research

projects involving players from the private sector, the government and

science and technology institutions.

“It’s the ideal tripod because it brings together the interests of three

key sectors with distinctive roles in the pursuit of a common goal. In

this case, the issue gains resonance, since the government can catalyze

the relationship and stimulate initiatives to strengthen it,” says the

FAPESPA Scientific Director.

Furthermore, Macambira points out that the company achieves greater

competitiveness, teaching and research institutions fulfill their role

as trainers of human resources thus contributing to form a qualified

critical mass focused on regional and national interests, and the

government achieves its target to strengthen private enterprise and to

attain advances in the generation of CT&I knowledge.

“It’s the ideal tripod because it brings together interests of three key sectors with distinctive roles in the pursuit of a common goal.” says Macambira

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“The interactions, such as the so-called Vale-FAPs Calls for Proposals, can be decisive and create significant benefits for the company, for the University and for the FAP, benefiting, in the end, the development of the country” says Brito Cruz.

The Vale-FAPESP partnership is responsible for funding and

developing 24 research projects and 105 research scholarships, at

nine science and technology institutions in the State of São Paulo.

These figures underscore the importance of closer relations between

companies and universities, and the scientific and technological

development of the country.

According to Carlos Henrique de Brito Cruz, FAPESP Scientific Director,

the Vale-FAPs initiative contributes directly to the advancement of

knowledge, in that it fosters the development of collaborative research

projects and, no less important, it identifies challenging research

topics for the academic community.

“These challenges expand the horizon of interest of universities

and define excellent training opportunities for undergraduate and

graduate students,” says Brito Cruz.

According to the FAPESP Director, the relationship between companies

and universities, such as that which occurs between Vale and FAPESP,

has evolved considerably in recent years. In an effort to simulate

this trend, FAPESP has entered into more and better agreements,

reaffirming its role in the promotion of scientific and technological

research in the country.

“The number of companies interested in developing partnerships

with FAPESP has increased greatly since 2005. The number of projects

under the PITE (Partnership in Research for Technological Innovation)

Program, which began in 2012, was seven times greater than the

average between 1996 and 2009,” says Brito Cruz.

When there is collaboration between public funding agencies and

private companies, it is possible to generate benefits not only for all

the institutions involved, but also for society as a whole.

“These interactions, such as the so-called Vale-FAPs, can be decisive

and create significant benefits for the company, for the University and

for the FAP, benefitting, after all is said and done, the development of

the country,” says Brito Cruz.

Vale-FAPESP Agreement Carlos Henrique de Brito Cruz, Scientific Director of the São Paulo Research Foundation (FAPESP), highlights the support from Vale in the development of collaborative research projects in conjunction with universities.

24 projects

105 scholarships

9 Science and Technology Institutions in São Paulo



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Indicators

Maps:

1 Distribution of the portfolio of R&D projects around the world

2 Distribution of the R&D project portfolio in Brazil

3 Geographical and percentage distribution of the resources invested in

Brazil, by General Area of Knowledge


Brazil, by type of business and type of mineral (USD M)


Brazil, by mining chain process and support activity

6 Distribution of research scholarships in Brazil

Charts:

1 Distribution of resources invested in ISTs in Brazil, by state (USD M)

2 Distribution of R&D projects abroad, by country

3 Percentage distribution of investment values, by type of research

4 Percentage distribution of values invested, by characteristic of the

project

5 Distribution of investments, by General Knowledge Area and Area

(USD M)

6 Distribution of the invested resources, by business type and mineral

type (USD M)

7 Distribution of resources invested, by mining supply chain process and

support activity (USD M)

8 Distribution of research scholarships among ISTs in Brazil, by state

9 Distribution of research scholarships, by type

10 The number of Doctoral scholarships, by General Area and Area of

Knowledge

11 The number of scholarships for Master degrees, by General Area

and Area of Knowledge

Tables:

1 Total resources invested in Brazil, by state (USD M)

2 Geographic distribution of the resources invested in Brazil, by

General Area of Knowledge (USD M)

3 Geographic distribution of the resources invested in Brazil, by type

of business and type of mineral (USD M)

4 Geographic distribution of the resources invested in Brazil, by

mining chain process and support activity (USD M)

5 List of Nuclei defined for the Urbis Amazon Network

6 Identification of ISTs in alphabetical order

7 Description of research scholarships, by type

Figures:

1 Representation of Institutes of Science and Technology (ISTs) in the

Vale-FAPs Program network

2 General diagram of the Urbis Amazon Network management

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GLOSSARY AND ADDENDA 62



Addenda

Glossary and Addenda

18. Source: Frascati Manual 2002: Proposed Standard Practice for Surveys on Research and Experimental Development, 6th Ed., 2002.19. Source: Coordination for the Improvement of Higher Education Personnel (CAPES). http://www.capes.gov.br/avalia-cao/tabela-de-areas-de-conhecimento. Accessed on: 10 September 2012

For the purposes of this document the following definitions are used:

Applied research: studies carried out to acquire new knowledge.

However, it is primarily focused on a specific practical purpose18.

Basic research: experimental or theoretical studies carried out mainly

to obtain new knowledge about the principles of phenomena and

observable facts, without regarding any particular application or use18.

Disruptive project: a project that creates major changes in the industry

or market structure. It refers to the development of new technological

routes, new materials or new equipment, causing a disruptive impact

in the business model, competitive environment or the creation of new

businesses.

Experimental development research: systematic studies based on

knowledge obtained through research and practical experience,

which address the development of new materials, products or devices,

the establishment of new procedures, systems and services, or the

substantial improvement of the existing ones18.

General knowledge area: group of several areas of knowledge

because of the affinity between their objects, cognitive methods,

and instrumental resources, which reflect specific social and political

contexts19.

Incremental project: a project that provides gradual improvements in

processes that have already been implemented or products already on

the market.

Institute of Science and Technology (IST): a public or private

organization, that promotes the development of scientific and/or

technological research.

Knowledge area: interrelated knowledge, collectively built, depending

on the characteristic of the object of research with the purpose of

teaching, research and practical applications19.

Mining chain processes and support activities: categorization of

processes related to the mining chain and operational support activities.

The following classifications have been considered to characterize the

R&D projects related to such processes:

• Exploration: mineral deposit research. This includes research fields such




Addenda

20. Source: Frascati Manual 2002: Proposed Standard Practice for Surveys on Research and Experimental Development, 6th ed., 2002.

as remote sensing, mapping, airborne geophysics, among others;

• Planning and Mining: mineral exploration methods and activities;

• Mineral processing: raw-material production activities and methods;

• Productization: client support activities and market development;

• Logistics: storage, transportation and delivery of minerals and other

commodities;

• Environment: activities related to the recovery and protection of

biodiversity;

• Energy: energy supply options for the company’s plants and

operations.

New project platform: a project that differentiates the company’s

business activities, creating competitive advantages in costs or new

market opportunities, pertaining to the generation of new technology or

products about to enter the market.

Research and development project (R&D): systematic creative work that

aims to expand the knowledge base and its use in new applications20.

Type of mineral: classifies R&D projects according to the most important

mineral that will be investigated. In the case of the Vale, these are: iron

ore, copper, nickel, manganese, coal, phosphorus and potassium.

Type of Business: the classification of the Vale R&D projects, according

to the company’s business to which they are associated, in the following

categories: environment and sustainability; logistics; health and safety;

and “transversal” (projects that fall into more than one Vale business

area).

Vale Institute of Technology (ITV): a non-profit institution for graduate

education and research, focused on innovation in areas that are strategic

for Vale.




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Table 6: Identification of ISTs in alphabetical order

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Source: Vale (2012)

ICTs Name

UNB University of BrasíliaUFES Federal University of Espírito SantoUFG Federal University of GoiásCDTN Center for Development of Nuclear Technology

CEFET The Celso Suckow da Fonseca Federal Center for Technological Education

EMBRAPA Brazilian Agriculture and Cattle Raising Company Biodiversitas Biodiversitas FoundationFIOCRUZ Oswaldo Cruz FoundationIFTMG Federal Institute of Minas GeraisPUC Pontifical Catholic University UNIFAL Federal University of AlfenasUNIFEI Federal University of ItajubáUFJF Federal University of Juiz de ForaUFLA Federal University of LavrasUFMG Federal University of Minas GeraisUFOP Federal University of OuroPretoUFSJ Federal Universityof São João del ReiUFU Federal University of UberlândiaUFV Federal University of ViçosaUFVJM Federal University of the States of Jequitinhonha and MucuriINPE National Institute of Space Research

ICTs Name

MPEG Emilio Goeldi Museum of ParáUEPA Pará State UniversityUFOPA Federal University of Western ParáUFPA Federal University of ParáUFRPE Federal Rural University of PernambucoUFPR Federal University of ParanáCETEM Center for Mineral TechnologyUFRJ Federal Universityof Rio de JaneiroUFRN Federal Universityof Rio Grande do NorteUNILASALLE La Salle University CenterUFRGS Federal University of Rio Grande do SulUNESC University of Extremo Sul CatarinenseUFSC Federal University of Santa CatarinaIPT Technological Research InstituteITA Aeronautical Technology InstituteCTBE National Science and Technology Laboratory for BioethanolUSP University of São PauloUNICAMP Campinas State UniversityUNESP State University of São PauloUFSCAR Federal University of São CarlosUNIFESP Federal University of São Paulo




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Fellowship (Type) Description

1 Post Doctorate Award to sponsor post-doctoral students to further advance research topics in his/her area of expertise.

2 Doctorate Award to sponsor research students in doctoral programs; it is expected that a Doctoral Thesis will contribute to the advancement of knowledge.

3 Master Award to sponsor first degree graduates to pursue further course work and develop a research topic; it is expected that a Master Dissertation will apply recent knowledge to improve methods and procedures.

4 Undergraduate Research Enables an undergraduate student to develop his or her technical and scientific skills through the practice of academic research.

5 Technical Support Enables technical support for research groups through the concession of specialized technical and professional scholarships, in Brazil or abroad.

6Technological and Industrial Development (DTI)

Enables the strengthening of the team responsible for the execution of a technological and industrial or innovation research project, through professional incorporation for the execution of a specific activity.

7 Technological and Industrial Research (ITI) Stimulates undergraduate students to become interested in technological research and development in companies.

8 Visiting Specialist Enables the participation of specialist consultants or instructors, either Brazilian or foreign, in complementing team training.

9 Visiting Researcher Enables Brazilian or foreign researchers, in recognized scientific and technology leadership positions, to collaborate with emerging or established research groups, for the development of lines of research or technological development considered relevant.

10 Technical Training Enables the training and improvement of techniques and students in mid-lever and higher technical courses (recently graduated), who participate in support activities for research projects.

11 Management in Science and Technology

Enables the strengthening of institutional teams, through temporary additional of professionals without employment bonds, who may be necessary for the development of innovation and technology transfer management projects.

12Regional Scientific and Technological Development

Stimulates the establishment of human resources with experience in science, technology and innovation with renowned professional skills in higher learning and research institutions, research institutions, state-owned companies operating in research and development, private companies and small companies that operate in scientific and technological investigation.

13Human Resources Training and Retention- Sector Fund

Stimulates the retention of human resources in the country with outstanding academic and technological performance and recognized professional competence in strategic areas and topics of interest for the Sectorial Funds

Source: Vale (2012), adapted from CNPq, FAPESP and FAPEMIG

Table 7: Description of research scholarships, by type



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66 Lago do Violão, Serra Sul - Carajás/PAPhoto: José Tasso Guimarães / Vale Institute of Technology



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67

Letter from the Director

Vale is committed to sponsor research projects that contribute to the

advancement of the ST&I community, with emphasis on proposals that

aim at mitigation of environmental impacts and that may lead to new

job opportunities. Accordingly, the company is committed to promoting

scientific and technological research by creating solid relationships with

ST&I institutions. Vale is promoting a new perspective in university-

industry relations through the opening of its doors to enable researchers

to access the operational areas of the company.

It is with great satisfaction that we give scientists from different areas,

together with Vale employees, the opportunity to create knowledge and

value through mutual collaboration, thus achieving the best possible

partnership between industrial experience and scientific knowledge.

We know that this is only the beginning of a new round of initiatives

promoted by an organization that seeks to innovate and renew itself

every day, introducing continuous improvements in how it thinks and

acts.

We hope that this partnership will not only generate a return that

consolidates the company’s vision, but one that can also be reflected

throughout society.

Luiz Mello

DITV - Vale Institute of Technology Department Director



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Murilo FerreiraVale Chief Executive Officer

Humberto de FreitasExecutive Director of Vale Logistics and Mineral Research

Luiz MelloVale Institute of Technology Department Director

Sandoval CarneiroGeneral Manager of Vale Partnerships and Resources

Claudia DinizGeneral Manager of Intellectual Property and Technology Management

Luis Carlos SilveiraScientific Director of ITV Sustainable Development

Regina BronsteinGeneral Manager of ITV Planning and Governance



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João CoralGlobal Energy Director

Roberto Di BiasiEngineering and Development Department Director

Marcio GodoyGlobal Exploration Director

Cornor SpollenNorth Atlantic Projects, Technology and Brownfield Exploration Director -

Vale INCO - Canada

Eugenio VictorassoSouth Atlantic Copper Department Director

Marconi ViannaFerrous Operational Department Director

Vagner LoyolaFerrous Production Planning Department Director

Lucio CavalliFerrous Planning and Development Department Director

Paulo HortaNorthern Ferrous Minerals Department Director

Mauro NevesGlobal Coal Director

Luiz Fernando LandeiroLogistics Director

Isis PagyCommunity Relations Director

Edson RibeiroMineral Projects and Technology Department Director

Mauricio MaxPelletizing Department Director

Especial thanks

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