**London**: Vale and Caterpillar have signed a five-year framework agreement to enhance productivity and innovation, prioritising carbon reduction measures, including the development of dual-fuel and battery electric haul trucks, reinforcing their commitment to sustainable operations in the mining sector.
Vale, a leading global mining company, and Caterpillar, a prominent manufacturer of construction and mining equipment, have formalised a new five-year global framework agreement aimed at enhancing their collaboration. This agreement, signed on 11 February 2025, is designed to boost productivity and innovation within their operations, particularly focusing on carbon reduction initiatives.
As part of the strengthened partnership, both companies recommitted to the collaborative efforts initiated in April 2024, which includes the development of a dual-fuel haul truck that operates on a combination of diesel and ethanol. Vale is also set to trial a battery electric haul truck, as well as the Cat Dynamic Energy Transfer System (DET) currently being developed by Caterpillar.
Marco Braga, Vale’s Procurement Director, commented on the significance of the new framework agreement, stating, “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.” This highlights the transition from traditional cost management to a more holistic value creation approach, emphasising the importance of supplier relationship management (SRM) in achieving long-term sustainability goals.
Denise Johnson, Group President of Caterpillar’s Resource Industries segment, echoed this sentiment, stating, “The agreement with Vale reflects our commitment to developing solutions that support our customers’ operational and sustainability goals.” This strategic partnership aims to deliver solutions that enhance Vale’s operational efficiency while prioritising safety and productivity.
With diesel fuel usage accounting for approximately 15% of Vale’s direct CO₂eq emissions, the shift towards sustainable technologies is integral to the company’s broader strategy to mitigate environmental impacts while ensuring competitiveness in a rapidly evolving market. The dual-fuel system being developed aims to initially support trucks with a capacity of 240 tons of ore, with future enhancements expected to accommodate trucks carrying up to 320 tons. Currently, Vale operates over 150 of these dual-fuel trucks, and initial testing is scheduled to take place at Caterpillar’s facilities in the United States before further validation at Vale’s operational sites.
João Turchetti, Vale’s Decarbonization Engineering Director, remarked on the challenges of decarbonisation, saying, “Decarbonisation is a major challenge today, which will only be overcome by investing in solutions such as alternative fuels and electrification to reduce emissions without compromising efficiency and safety.” This reflects a growing recognition within the industry of the need for innovation in sustainability practices.
Furthermore, Marc Cameron, Senior Vice President of Resource Industries Sales, Services & Technology at Caterpillar, emphasised the proactive nature of their collaboration by stating, “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.” This forward-looking approach illustrates the significance of enhanced supplier relationships and collaboration in fostering resilience and gaining a competitive advantage in the industry.
The agreement between Vale and Caterpillar signifies a substantial shift in how procurement and supplier relationships can evolve to meet new challenges in the resource sector, reinforcing the importance of strategic collaborations in driving both operational efficiency and sustainability.
Source: Noah Wire Services
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