Thank you for being here, and welcome to the 2023 Vale Day. My name is Thiago Lofiego. I'm the new head of Investor Relations at Vale. On a quick note, over the last 15 years, I've been on the other side of the stage, and it's an honor to be on this stage today alongside the company's executives. Today, we're gonna talk about our equity story, the key levers and initiatives that we see unfolding in the coming years to unlock further value to shareholders, to stakeholders, and to create an even greater value.
For that, today, we have here with us Eduardo Bartolomeo, our CEO; Gustavo Pimenta, our CFO; Carlos Medeiros, our VP of Iron Ore Operations; Marcello Spinelli, our VP of Iron Ore Solutions; Deshnee Naidoo, CEO of Vale Base Metals, and Mark Cutifani, the chairman of the board of Vale Base Metals. So with that, I'll hand over to Eduardo, please, for the opening remarks.
Okay. Thank you, and welcome to the other side. Okay, okay. Thank you. How can I start? First of all, thank you for coming over here today. I think, for us, it's a honor to have you here, have the interest on listening to our story, our narrative, our strategy. So for sure, I think we're gonna have a enjoyable two hours here with food after I finish my speech. But, what is the executive summary of the what we're trying to convey today? Let me try to be very, very brief and short. First of all, I think Vale, since I took over, has been extremely disciplined in executing on what it promised. And by the way, a lot of this execution is bearing fruits, and they are around the corner.
I was talking to somebody previous, "Oh, you're, you're saying 26." No, no, everything is coming along as we speak, and of course... And what do I mean by walk the talk? If you remember, we had the reshaping, the risking, reshaping, rerating. We like bothering you, blah, blah, blah. Look, Vale today is an extremely safer company than it was in 2019. When we talk about reshape, I think we underestimate what we did. We sold 10 business. We just finished MRN last Friday. We brought Vale to the size that it should be. We have two unique business that are replicable, namely, of course, iron ore base metals. And why I say that? Because I think now we are set up to success, and we felt this.
I think we talked about that last time we met, and now we see after one year, what happened. After one year, we have a full dedicated organization for iron ore, and we carved out. We're gonna talk a little bit about that. Mark is here. Welcome to the other side as well, to the same side. I don't know what side you are, but anyhow, glad to have Mark with us. But fundamentally, we are set up for success. And that's why I said in the finishing of the call. The calls, I think everybody leaves when I do my remarks, and I don't prepare, by the way. So I said, "What do I... What was I feeling at that time?" I said, "Shit, I've never been so optimistic.
This company finally is getting through." So, that's what we are gonna talk to you today. And I'm gonna go through the levers, sorry. And that I used to say another analogy just to refresh your mind. I always said, because I knew it wouldn't be something easy. I always say: Look, this is not a sprint. It's gonna be a marathon, but I'm not... I don't know if I'm seeing the finish line, eventually, but it doesn't matter. I think there are a lot of things that we saw, in English, I think, is the word, and we are harvesting now, and we're gonna share those with you.
Of course, I'll call your attention that those things are 100% in our hands, so we don't depend on licensings or things like that. So we can capture that, and of course, it's through 2026. It's not until 2026, so that's what is written there. And the first lever... No, sorry, sorry, not the first lever. This is the new frame. Last year, we did 80 years. We look at the future. We said, "We need to promote sustainable mining, we need to foster low-carbon solutions, and we have to stay disciplined." And we made some tweaks during the year because we said, of course, be sustainable, but what is missing here? We need to truly develop the communities where we are.
So this thing in there is with the one in black, whatever, is the regional social and economic development. When you talk about fostering low-carbon solutions, something that Vale used to be very good at in the past, we need to bring customers to the center again. The customer centricity has to come back again to our equation. Although we have a lot of innovation technology, I think this has to be stressed. The last one is, of course, important to you. We need to have a balance sheet, we need to have capital discipline, but we need to have operational discipline to guarantee the capital flow to the company. So we brought those two things. But what is the message here?
Just, again, trying to share with you. As we did with the reshaping, the risking, and rerating, we're gonna do it. This is our compass. We're gonna follow strictly what is written here. So that's very important to bear in mind. Now, going to the lever, to the levers, we have five. We're gonna share five with you. I'm gonna do just like an intro on safety. It's on me. The rest, I'll call Medeiros, Gustavo, Deshnee, Mark, and Spinelli to talk about. But I'm gonna give you a flavor of my reading of each one of those. Safety for me, actually, I was asked yesterday, when you leave, if you leave ever, what you, when you want to look back, what you would like to be remembered of? For me, safety.
Vale today, it is a much safer... And we have the data to prove that. We are a reference in the industry for TRIF. TRIF is Total Recordable Injuries. I'm not satisfied with that, by the way, but that number means that 1,000 people came to work and came back home the same way they arrived. But Vale is not, although we are very proud of it, we look at those numbers there, the 57, with the high injuries that could eventually lead to a fatality. So the reduction is 72%, and as we are gonna talk, the frame between 2024 and 2026, in 2025, we want to zero that, and this is in our goals. So the first message is here: we are proud, we are happy, but we're not satisfied. The second dimension on process safety is tailings dams.
Of course, Vale started this journey, should eventually should started earlier, but when I started the journey, we really took it very seriously. We profoundly changed the way we, we, we, that we manage our tailings dams. We are at. So, how can I say that? The consequence that when GISTM came, we were pretty close to adhere, and we adhered on the time frame that was defined by ICMM. We do use technology a lot. We were using it already, technology, and more importantly, we are accelerating the change for a transition to filtering, to dry stacking, to dry processing, to obviously reduce the amount of tailings that is needed. But let's listen from our employees, how they see this.
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Actually, this video was made not for the Vale Day, by the way. This is an internal video that we felt was so good and said, "Let's bring it here and share with you." But fundamentally, I think without the fear of being arrogant, I think Vale today is a reference in tailings management. I can tell you that, but more importantly, we need to close the decategorization program, and of course, reduce the emergency levels. And the goal here is to have, again, in this period of 2024, 2025, no tailings dams with level three by 2025. And that's why it's so important, because we have to guarantee no repetition. And we're pretty comfortable today that we exactly know what's going on, but fundamentally, non-repetition is the key word here. Iron ore stability.
I think this is the first benefit that we saw very strongly when we reorganized Vale. As I mentioned, we used to have 10 business. I think we lost focus. And when we decided to carve out base metals, we said, "We have to organize differently." And now, Medeiros, he's gonna come to talk to you in a minute, has his completely focused on the asset. And fundamentally, when I started, you might remember, Barcelona was the first time I talked publicly. I said, "I believe in a management model that we call VPS. I think Vale lacks a management model." It doesn't take 2 years to implement, it takes generation to implement, but it's really more mature today. I'm extremely comfortable with the guidance this year. We are, of course, we're in December fifth.
If I wouldn't, it would be a problem. But why?... because our adherence to plan is totally different. We went to up to 95%, and we are again on very comfortable for 2024. But Medeiros can go in details later. The next one is a very important one, because this is what people ask all the time: where is the growth of Vale? And the growth is contracted. That's the good news. Spinelli is gonna talk about that in details as well. But what I wanted to share with you, we did the largest infrastructure project in the world called S11D. We just delivered Salobo three in on time, on budget, through COVID. All these projects are 60% advanced on physical construction. They don't depend on anything, so our quality and growth is contracted.
Now, I was always thinking, what, how can I approach this? I said, "This is my baby." I don't know what the words to say that, 'cause that's something if you say walk the talk, this is a walking the talk. We told you we are gonna carve out this business, we're gonna find a partner, and we only would sell if we find the right partner with the right value. I truly believe that we did it, and that allowed us to do exactly what's happening now. Allow us to attract Mark, allow us to attract Jerome, allow us to bring people, allow us to bring knowledge, because the asset review is gonna explain, and me and Mark is gonna try to come here and explain a little bit more about it. So I'm very happy about that as well.
Again, Deshnee and Mark are gonna go through these dimensions here, so to keep my time on time. This is the ESG. I remember funny, because every Vale Day, people said, "Why doesn't he talk about business? He stays 45 minutes talking about ESG." I don't know if you remember that. Now, I've talked only 5 minutes. But the problem here is interesting because our ESG journey starts with preparation, unfortunately. The commitment that we have with Mariana for sure is shown here. We already disbursed more than BRL 34 billion. We compensate more than 400,000 people. 80% of the houses that you see in the video, in the picture, and the water is cleaner. So the message here, we are committed to repair Mariana.
Same message, this I think we're in a way a bit better. The agility and the empathy that we work out in Brumadinho is translated in numbers and actions. We know exactly the amount of people that were affected, the 14,000 people that I mentioned here, the BRL 3.4 billion of compensation, and we are already in 2023, going back to our 2023-2026, with 64% of our integral repair reparation agreement done, and 90% will be in 2026. What's the message here? Brumadinho was the driving force behind everything we do in Vale, and I think we can. I think, no, I'm sure that we have to strive to thrive to leadership here.
Because when you talk to Vale, if you talk to anyone, we were the first one to put ESG goals in our, you know, in our variable compensation. Yeah, long-term compensation. We are the first one that have Scope 3 goals. We have extremely aggressive biodiversity goals on forest. So we are all over. We already reach our target of Scope 2 in Brazil in renewable, although Brazil has this benefit of being a green country. But let me pass another video just to... because it's a lot of stuff on ESG, and I'll come back to the theme a little bit later.
By promoting responsible mining, we can improve lives and transform the future together. In 2023, we delivered one of the largest solar power projects in Latin America, Sol do Cerrado. To be sustainable is to also recognize our dependence on nature and go beyond merely compensating for our impacts. It also means expanding the protection of native forests and restore degraded areas beyond our borders, thus contributing to the growth of the socio-bio economy. That is why for every hectare impacted by our operations, we protect 11 hectares. We develop solutions that use mine tailings to make new products, such as sand or fertilizers, in a circular economy. In 2023, we launched Agera, a company specifically created to commercialize sand made from mine tailings. To be sustainable is to place people at the forefront and acknowledge that diversity plays a fundamental role in the journey towards sustainable mining.
We believe it is crucial to foster equity, enhance workforce inclusivity, and cultivate an environment where trust and respect are paramount for everyone. We must partner with the communities beyond our borders and support their development in infrastructure, income generation, healthcare, and quality education. As part of this commitment, we are carrying out a pilot project with 30,000 families to advance our goal of lifting 500,000 people out of extreme poverty by 2030. We are a company that actively contributes to a better future for people and the planet.
Okay, and I think, as you remember, the first pillar I mentioned in the beginning of the presentation is promote sustainable mining. It's, I truly believe that there is no way that mining is gonna be accepted or is gonna be even rerated. We talked about a lot during these last meetings that we've discussed, if we're not really walking the talk when we talk about ESG dimensions. One thing that I'm very proud of is diversity. We allocated more than 6,000 women in Vale since 2019. You saw the numbers in the video. And the good news here is that people are starting to get that. Sustainalytics, ISS, MSCI, so all of them, our ESG risk ratings are evolving, and I think there's still way to go, but anyhow, we got there.
And just to conclude, I think... Let me, let me pause here. The fact that we are working hard, and I've-- of course, Vale, I joined Vale in 2004. I've, I've been around with Vale for 20 years. It, Vale is, has been always a great company. I have no doubt about that. But I believe that what we are doing today, with the support of our board, with support of our team, we are building an even greater Vale. Okay, thanks a lot, and now I'm gonna pass the floor to Medeiros with 1 minute more in your account. I saved 1 minute.
Thank you, Eduardo. Good morning. It's a pleasure to be here and share with you an update of our operations. So we aspire to operate safely and reliably, and we can only do that by pursuing operational excellence. And in this presentation, I will cover three main elements of operational excellence: how we ensure safety, how we maintain our assets reliably, and how we have made effective changes of the operational models of some of our assets. So starting with safety. So Eduardo has shared how our total injury rate has declined over the years. The same trend applies to the significant injuries that could lead to fatalities. So in this slide, I want to highlight the near-miss reports or N3s. They are precursors of accidents. Therefore, the more we have, the better. So we have, year to date, 35,000 of them reported.
They are growing year-over-year, and 81% of them have been addressed. 5 S, another important element, it's the basis of safety. It is in, in iron ore, we have 19,000 work areas, and 99% of them have fully implemented 5 S. This is a methodology for creating and maintaining operational work environments clean and organized. Also, we have been keeping track of process accidents. This relates to incidents that could translate into accidents that could cause multiple fatalities or huge financial losses. So we have mapped the major unwanted events, defined their critical controls, and we keep monitoring the integrity and the health of these controls. So the end result is that year-over-year, there has been a reduction of 70% of these incidents reported.
So talking about asset reliability, Vale operates in a capital-intensive industry, and as such, we must excel in the optimal utilization of our assets. Therefore, we have been implementing a maintenance strategy that emphasize the importance of planned and scheduled interventions, maintenance interventions, therefore minimizing the likelihood of an equipment downtime. One crucial aspect of our strategy that I would like to underscore today are the asset monitoring centers. We have 16 of them. These centers, they keep monitoring variables such as vibration, temperature, speeds of almost 300,000 points. These data points are analyzed by an AI algorithm that notifies our team whenever an intervention is needed. So the maintenance planning team will then schedule a maintenance activity according to the asset's condition. So what are the results we are obtaining... we have been obtaining so far? And I would like to share with you some of them.
So on the top left corner, that's the corrective maintenance ratio. So here, the lower the better. That's the ratio of the amount of time we spent doing unplanned maintenance activities over the total amount of time spent doing maintenance. As you see, almost 30% reduction year-on-year. On the top right corner, that's the mean time between failures. That's the amount of time for our Itabira mining fleet to present some sort of breakage. So there, we had also a significant increase, so the higher, the better here, 25% increase in three years. So at the bottom left, that's the same mean time between failures, but this time for the truckless system at the S11D. So as you see, almost 100% increase in three years, and this is particularly encouraging because we are planning to increase production exactly there.
And the last one, that's the amount of kilometers traveled by our trains before they present any breakup, and also a 54% increase. So all these results, they are a consequence of the maturation or the evolution of our management systems that Eduardo referred to in his opening remarks. So this also demonstrates that Vale is building a robust and dependable platform that can provide assurance to everyone about our capability to deliver the volumes we have committed with the market. So when I think about operational models, we have conducted a thorough review of the operational models of some of our assets, implemented some changes, and obtained some interesting results that you'll see. So starting with Brucutu Mine. I think this is a great example of an integrated plan. It started...
It starts with the mining plan and all the activities that follow, so the drilling, the blasting, the haulage, and the crushing. So at Brucutu, we operate with a high adherence to the mining plan and really pristine infrastructure conditions in terms of access and drainage. So this means that we have a highly productive autonomous trucks fleet, 18 of them, as you see on the slide. So this, the performance of this fleet has been recognized by a third party as one of the most productive in the world. A similar award was also received by our shovels at S11D. Another good example is exactly at S11D, where we are having a better performance this year. So there are some elements that have contributed for this performance. So the first one is a better ore body knowledge.
So with better geological knowledge, this implies in better mining plans. With better mining plans, we could also improve our blasting strategy in order to cope with the jaspilite's occurrence. So although jaspilite is still an issue, we are in a much better position to fragment it and operate our mines effectively. We also changed the way our mine operates, so it's now running on a hybrid approach. So this means we are combining the truckless with the mobile mining fleet. So this is particularly helpful and important because it prevents us having all the production losses we used to have whenever we had to move the truckless system around. And we are also, as you have heard, installing new crushers, and the main one will be installed in 2026, and Spinelli will present more details about this project shortly.
And the consequences, as you can see, a better utilization rate at the from the Truckless System. Finally, at the port, our northern port, Ponta da Madeira, you all remember the poor performance we had last January when we loaded only 10 million tons in from Ponta da Madeira. So since then, a number of important changes have been made at the port, and I would like to highlight a few. So in terms of shipping, we have eliminated the smaller vessels, and we are mostly operating there with larger vessels that are SCCS certified. This means specially constructed cargo ships, and they are capable of transporting more humid ore. Also, important, we have made some important changes in our yard. So we eliminated the slow-moving SKUs we had, and also we increased the stockpile height and improved the drainage conditions.
This allows us to have a much more efficient management of our product yards. We also reviewed the maintenance there and leveraged our reliability. You can see on your right-hand side also, the mean time between failure of our ship loaders has also improved substantially. And the last one I would like to highlight is that we are using an AI tool to help us managing the total moisture limit for the transported ore. This is particularly important because a well controlled TML means a much more smooth operation during the wet season. And talking about wet season, we know that the weather poses a significant challenge to our operations, particularly in the first quarter, where operating under heavy rainfall interferes with our operation.
But at the same time, it offers the possibility of a resilient structure and robust response. We are taking some important actions, and I would like to highlight just three of them here. The first one is on the mine. At the mines, it's about keeping the bottom of the pit dry as long as we can, so we can operate there. It's about the water balance. It's about our hydrogeological capabilities there. We have also reviewed our capability, and we are in a much better position. At the same time, we are making a lot more available at the top of the pit, so we can use that during the worst days. On the railway, the photograph shows an area that was flooded last January.
So we are taking several flooding prevention measures alongside the railway, like, like this. And at the port, you see this blue pile there? That's iron ore, but coated iron ore and dry iron ore. So it's sitting at the port, this inventory, that should be blended with humid material if and when needed. So in this way, we can ensure that our loading will not be stopped. So all this information I'm sharing with you, I hope it can provide peace of mind and assurance about our ability to deliver on the committed volumes today and also in the future, but also to demonstrate that we are taking concrete steps in accordance to our strategy to fulfill our ambition, which is to be a world-class, safe and reliable operator. Thank you, and I will hand over now to Spinelli.
Thank you, Carlos. Fantastic presentation. Thank you. Good afternoon, good afternoon. I'm really glad to be here, back to London, and my fifth Vale Day. It's a long time. So today, I'll drive you through the third level that Eduardo mentioned, which is the production growth of premium products and gradually increase not only 26, but gradually increase until 26. So before getting details of the production roadmap, let me share what are the main elements that is driving the demand today, why Vale is in a unique position to supply the market, and I'll remember you the four main actions, the main initiatives of iron ore solutions, including the production plan, that we are moving forward, and I'll bring more colors about the evolution.
So last year, we said that steel demand is not over. So human development continues to drive the structural demand, but now we have an additional effect of the decarb of the world. But when you think about structural demand, the main question that comes is when and how China is going to decrease or going to slow down? We have some people that don't believe that. And probably one month ago, I'll take more time to convince you, but I'm really confident, definitely, that China is much more resilient than we could expected. So a new industry is emerging in China. They are already leading the energy transformation in the world. They are producing the EVs, the batteries, the PVs, high-quality products. They need more steel and flat steel and high-quality flat steel.
That implies an increase of production of pig iron, and they will need, they will need more iron ore. The second driver is reshaping the steel and iron ore demand profile. That's the main impact. We all know that steelmaking, they have the technology to go to zero. They have the direct reduction. We can use natural gas, you can use hydrogen and have the zero emission. That's good information because we have other industry that don't have yet the technology. The pathway is based in two main pillars. First one, the energy transition itself, so they have to come from the coal, natural gas, and hydrogen. You can include the CCUS or CCS. On the other hand, we need to reduce or we need to increase the efficiency of energy. To reach those goals, we need high-grade ore.
There's no other way to get this. This is new information here. I want to draw your attention because we all the time talk about the competitiveness of high-grade ore when you compare to low-grade ore. We brought some information here. So this is a comparison between lower-grade ore and a high-grade ore in each route. And you see the—this is the cost of the production of metallics. It's not iron ore. This is our client's cost, and you can see the gap of almost $100 in competitiveness. If you want to translate this to VIU, you have to divide this by 1.6. So that's the value we can share with our clients. That's the value that we can bring to our company.
We truly believe that we have growth in iron ore. We bought this information last year. There's a clear segmentation, as we need more high-quality ores. We always say that we have energy transitions that of critical minerals. High-grade ores are critical also. It's not enough because we see a gap in the supply-demand, mainly when you talk about direct reduction feed. So why Vale is ready to support that? Three main elements here. First one, we have the endowment, we have Carajás, we have high-grade ores. Secondly, we can concentrate our ores economically comparing to our peers. And finally, we've been developing a track record of beneficiating ore. We know we have. We dominate all the technologies. We are in the edge to do this, and that's the reason why we can solve the problem.
But let's put this, all this in action. This is a recap of the customer-centric approach of iron ore solutions. There are four solutions here that you already know, but I wanna follow up, how are the evolution of that? The first one is Mega Hub. We already have today a reshoring of, of the steelmaking industry. Seeking for source of energy, cleaner source of energy, competitive sources of, of energy, and the Mega Hub can play a key role in this trend. To do this, to support this, we need a global rated products. Famous pelletizing plants, but now here we have innovation again in Vale, bringing the green briquette. High-quality production growth, that's a lever. That's the main source of value of this chart. And I'll get in details how we're going to bring not only volume, but quality.
Finally, we need to keep a stable supply of high-grade ores to support the new investments that are coming with our clients. Let's start this follow-up with a video.
Committed to the future of the planet, Vale invests in innovative and sustainable solutions to decarbonize steelmaking. One such solution is the briquette, a high-quality agglomerate made from iron ore and a binding solution developed by Vale. With applications in various steel production routes, such as the blast furnace and the direct reduction routes, the briquette enables the reduction of CO2 emissions throughout the production chain. Located in Tubarão complex in Brazil, the two briquette plants are already commissioning and will begin to supply products to our clients by 2024. Together, both plants will have a production capacity of 6 million tons per year, and there are more plants on the horizon. We aim to lead the production of agglomerates in the coming decade, producing 100 million tons per year of briquettes and pellets.
In another innovative initiative, Vale is promoting the development of Mega Hubs for a more efficient steel production using the direct reduction route, a production route that emits 60% less greenhouse gases than the integrated steelmaking route. In the future, with the use of green hydrogen, we expect to completely eliminate emissions from steelmaking. With these industrial complexes, we will produce high-quality agglomerates, which will be used as feed to produce HBI. We are advancing on our agreements to create Mega Hubs in the Middle East, with construction starting in 2024, and are also exploring opportunities in Brazil and in the United States. By investing in innovation and creating solutions for our clients, we are changing the history of steelmaking, moving towards an increasingly sustainable world. Decarbonizing the industry is our commitment to society and the planet.
Great. So in a Mega Hub, we bring high-grade ore, we can agglomerate, we also can increase the production of concentration to feed an HBI plant close to a competitive source of energy. When we do this, we can transport energy inside metallics to feed downstream steelmaking in other every part of the world. What do we have new here? We just finalized the terms of the first Mega Hub in Duqm, Oman, and we expect to finalize the binding agreement in the beginning of next year, and we expect to come online the first Mega Hub by the end of 2026, beginning of 2027. briquette. Eduardo, I think this is, this is our baby. You mentioned this is our baby. So we are really happy that we just launched the first industrial plant, 3 million tons.
We have another plant that coming online the first quarter of next year. Now, we have the power to scale up the test so we can make longer tests with our clients for blast furnace and direct reduction. And we are committed to deliver the 100 million tons of agglomerated products. I'm talking about an additional 50 million tons of briquette by 2032. Now, moving to our production plan. First information here that you already know, our production guidance for next year is a range between 310-320, but with a very important information, just Carlos just mentioned, with a lot of reliability. To reach our midterm forecast of 340-360, Eduardo also said we have to track three projects. Very simple.
No major risk in terms of of licenses, only the time to deliver the project. Vargem Grande, Capanema, and S11D. Another information, pay attention in my right-hand side, that we have only in the industry, the possibility to bring 50 million tons with high-grade ores, with this low level of CapEx intensity. It's unique. So we are in a good position to deliver that. So let me bring updates about permitting. So this is a big challenge in every place. It's a global trend. The increase of ESG standards in every place, it's much more difficult to develop a mine, and also in Brazil. And we also have now higher standards for safety, mainly after Brumadinho. But what is new here? And we have good news here. Take a look on that information.
In Minas Gerais State, where we have our south and southern operations, we more than double, more than double the license in 2023. In cooperation with the agency, bringing them technology, bringing them capacity to process all this backlog of license, not only for Vale, we talk about the industry, the whole... Not only mining industry, the whole industry in that state, we are moving much faster. That is a very good news. We have the same approach, less advanced that we have in the, in the state of Minas Gerais, in the federal level. That is, we already committed with the same approach, so we have technology, we, we bring in more information, university, so they, they will have power to bring more results in the next year.
I have to mention, because every time you ask me about this, how is the cave legislation? We know that in Brazil, cave legislation is the most stringent in the world. But at the same time, we are really optimistic about the modernization of the legislation, because it's part, and the fundamental part of the program, the government program, to invest, they call PAC, P-A-C. It's investment growth, the main program of the federal government. And it, this is a key solution, not only for mining, but for agribusiness and for the infrastructure. And we may expect some good news in the next year. So now moving project by project. Vargem Grande, 60% of accomplishment, 15 million tons coming online in the end of next year.
Capanema, 60% of accomplishment, 50 million tons in the beginning of 2025. Finally, S11D, 58% of physical progress. This is the mine site, the increase of volumes. And as Carlos said, we also have the compact pressure investment that expected by the end of 2026. That will be really important to the health of the mine, because we need to bring down here the waste that is already stockpiled at the mine site, and we need to remove that. That's the agenda, that's the project that we have to track. Finally, we have the fourth action, the fourth service that we have in iron ore solutions. That is the capacity to concentrate. Last year, we said that we cracked the code of Carajás, and we can concentrate that.
The largest pool we have, 20 million, 200 million tons that you can help and solve any gap of the direct reduction feed. We succeed in the first phase, in the pilot studies. It's going really well. Now we have to scale up the solution. We are on track. Another information here that we brought, not in the Vale Day, but in the Investor Tour, that we are bringing a concentration plant in Sohar. Sohar is a place that we already have, for more than 10 years, a pelletizing plant in Oman with a port, and we're going to bridge the necessity, anticipated the feed and speed up the Mega Hubs in the Middle East. So it is expected to bring more than 10 million tons of concentrated ore by 2026-2027.
So to conclude, as Eduardo said, we are walking the talk. We are really committed and on track to add more value to our business, to our clients, to our shareholders, and to our society. Gradually, we are increasing the quality of our portfolio. You can, you can see this year by year, we're gonna reach the level of the past, the average quality that we used to have. We have a clear segmentation here, a clear segmentation. Sooner or later, we have the decarbonization of the industry, and high-grade ore is key. Also, the average of the premium will increase as we are increasing the quality of our portfolio. But don't forget that inside here we have 100 million tons of agglomerated product. That's a high-end product, one-third, almost one-third of our production.
And finally, we are the supplier and the partner of choice of our clients, and we are ready to support them in the challenge to decarbonize the steel industry. So now I hand over to Deshnee. Thank you, Deshnee.
Thank you. Hi. Thank you, Spinelli. So good day, everyone. It's fantastic to be here and sharing the stage with Mark to talk about energy transition metals. You know, across base metals this year, we've had a multitude of milestones, not least the one scoring Mark as our chair. Let's start off with market demand. You know, if I look at global EV sales, EV sales are up 34% year-on-year, slightly below where we thought we would be at the start of the year, and that easing we are seeing is largely on the back of some of the macro headwinds we are seeing in the market.
But electrification-backed demand for both nickel and copper continues to be the fastest-growing segment, and that is on the back of the commitments we continue to see with the OEMs, although some of it's delayed, as well as the policy incentivization within the system. So the long-term fundamentals for nickel and copper continues to be reinforced. Now, we are setting up a carved-out base metals organization for success. If I look at the unique attributes that we have, which is a top three reserve and resource position in every geography that we operate in, a very attractive asset base in geographies that matter.
If I then look at the unparalleled growth pipeline that we have, and then adding the ESG credentials that the business brings, including things like having more than 90% of our power coming from clean sources, which helps us to produce some of the lowest carbon intensity products. All of that, together with the intent of the dedicated vehicle, which includes having partners like Manara and Engine No. 1 as like-minded investors in the business, the access to competitive capital that this vehicle now gives us, all of it makes for a very compelling case for base metals to succeed. We are absolutely on the right path, given the actions that we've taken this year in line with the commitments that we made last year to all of you. Starting with safety.
Today, our safety, our lost time injury, our, TRIF rate, Total Recordable Injury Frequency rate, is 20% improved year-on-year. That is on the back of the work that we have done on leadership in the field, critical risk management, as well as the work, as Carlos spoke as well, on critical control effectiveness. On safety, however, the job is never done, and there still remains much to do in the business. Looking at copper, our Salobo one and two plants are running at an availability of greater than 90%. That is a five percentage points more than we were last year this time. That is on the back of the asset recovery work that we started, which targeted the loss profile across all of the critical assets, as well as the maintenance backlog that we have.
Very happy to say today that our progress is on plan. Turning to Salobo three. Salobo three is running at 90% of the planned capacity throughput, which is 12 million tons. Salobo three, both lines started in February, and if I look at where we were then to now, this has to be a benchmark ramp-up in action and testament to the teams on the ground, because this also shows us, this also shows us that our, our work on ops readiness is, in fact, bearing fruit. With the performances that we're seeing across Salobo plants one, two, and three, we were able to complete the first phase of the copper and precious metals performance test. That test needed us to perform at a 32 million ton per annum run rate across the entire complex over a period of 3 months.
By achieving that from August until the middle of November, we were able to achieve the bonus of $370 million. So Sossego plant, that had the maintenance challenges last year, happy to say that our throughput is 12% up year-on-year to just over 1,600 tons per hour. Turning to nickel. In Sudbury, our capital development is up 21% year-on-year on the back of the work that we are doing on mine planning as well as productivity, and this will help set 2024 up for success. Voisey's Bay mine extension has just passed the 90% physical completion mark. We are, however, experiencing some challenges on the critical path item for Voisey's Bay, which will lead to some delays next year, and those numbers we've already embedded into our forecast.
We approved the Pomalaa Mining Project in Indonesia in, in October this year. Pomalaa project will support the 120,000 ton HPAL plant. That, you would recall, is the three-party JV with ourselves at PT Vale, Ford, and with Huayou Cobalt. And most recently in San Francisco, just last month, we signed the heads of agreement for the next phase of the PTVI divestment. Recall that this is a regulatory requirement, and having signed this HOA sets up PTVI for success because it enables us to actually extend the licenses in the business beyond 2025. What a year! Now, if I turn to our copper production. This year, we will end at the upper limit of the guidance of 325,000 tons. That is a 28% increase year-on-year.
Looking at where we are to where we will be in 2024, we are guiding at 320,000-355,000 tons. What is the delta? Salobo Complex. Salobo Complex's throughput will increase by 16% to get us to an average of 31,000,000 tons. Remember, the entire complex has a capacity of 36,000,000 tons. That, given the offset that we will have from mining grades, mining grades will reduce at about 10% next year, helps us create the delta in so in Salobo Copper next year. Sossego. Even though the Sossego pit, Sequeirinho, is coming to the end of its life, we will have an uptick because of the mining sequence in grade. In fact, our grade increase is about 13% to get us to about 0.76% next year.
That will also give us a bump up in, copper. And in North Atlantic, as we've discussed in some of the previous results presentations, although we are seeing the depletion at our Coleman mine, some of the work that we've done, including the development I've just spoken about, as well as the project on CCM South that we commissioned last year, give us additional tons to offset the depletion that we are seeing in, Coleman . So what happens from 2024 to 2026? Okay, Sossego, as I said, depletes, the Bacaba project starts. That Bacaba project, 60,000-ton plant, starts to ramp up and end in, full, production in the second half of 2026.
Salobo Complex stabilizes, and in North Atlantic, we will see the benefits of the VBME ramp up, which is also at the second half of 2026. That is the guidance for 2026 of 375,000 tons to 410,000 tons. Turning to nickel, we will deliver our guidance for nickel. This is the second time in a row. We are guiding a similar level that we started this year with, which is 165 or 160 to 175 thousand tons. But there's different production levers, different production drivers that are in the nickel numbers, and that's what I want to bring your attention to. Firstly, in Ontario, we will have a two-month shut of our surface plants, and the reason for that is just maintenance cycle driven.
Then, as a result of some of the improvements that we are making in Sudbury, specifically led by the development work, we will reduce our external feed next year. In Voisey's Bay, continues to ramp up. All of that gives us the 160-175. I'll just wrap it up because I'm running out of time here. If I look at then from 2024 to 2026, we will be hit by depletion reduction in three areas for nickel. The first being the geological inflation that we will continue to see in North Atlantic, PTVI equity accounting, as well as the planned reduction of external feed as Voisey's Bay ramps up. Remember, we have guided. The only reason that we are purchasing more external feed was to create the stopgap as Voisey's Bay ramps up.
Voisey's Bay ramp-up comes in, and on Sudbury, not only do we deliver Furnace One, which comes in at a better efficiency, but we then ramp up the Furnace Two project. All of that gives us the 210-230 thousand ton production. On nickel, I do want to say that next year you will see nickel even more back-ended to the second half of the year, and that is because of the increased planned outages we have in H1. I am not going to go through this slide in detail.
I think all I want to say about this slide, and we've spoken to you about all of the projects that we have across the region, and when we spoke about the transaction, we guided that we'll need to spend $25 billion-$30 billion over the next decade across all of this. The work that Mark has started in the business is the asset reviews. Together with the asset reviews, the refresh on the strategy. We will come back to talk you through how this forms the basis of how we can continue to accelerate production across base metals. And all that's left to say is that 2023 was a foundational year for the business.
A lot of the improvements that we've made on safety, on maintenance, on development, on project execution, on the heads of agreement, definitely sets the business up to achieve what we need to, which is the 900,000 tons of copper and greater than 300,000 tons of nickel. Thank you. Mark, over to you.
Thanks, Deshnee, and I much appreciate the color scheme, particularly following Australia's win in the World Cup of Cricket. I shouldn't say any more, should I? Ladies and gentlemen, it's great to be here. Eduardo and the team, thank you for the great welcome. Deshnee, we've got the team here, Guga, Emily, John, Mariana, all here as part of the Vale team. In the last two years, when people ask me about the energy transition, I talk about the most important metal, and it's steel. I then talk about copper, which I think is a great place to be, and then I talk about nickel, because I do have some personal affinity to the metal, given this is the third time, I've been working in a nickel business.
All three are really important, so for me, it's a great place to be with a great group of people, and again, really impressed with the work that's being done in iron ore. Also very impressed with the work that the team in the base metals business have done over the last couple of years, stabilizing, establishing a foundation, and starting to make improvements in the business for the longer term. In terms of starting in the business and doing the work we do, we started with an asset review, which I think is always the right place to start, is understand the assets you have. So I didn't expect to come back into a business the way I have, but again, from the chair role, it is a very different perspective.
But also, Tony O'Neill, as the leader of the asset review team, wasn't expecting to be doing what he's doing, nor Tony Filmer, who was previously with Rio, Inco and Anglo, or Mick McAleer, who was from Nabalco, WMC, Alcoa, Anglo American. Fred Stanford, Inco, Torex; Andrew Matheson, BHP, Anglo; Tim Biggs, previous mining practice partner at Deloitte; and Anne Stevens from BMO. The reason I talk about those individuals across the industry, they're known by those in the industry as probably being right up there amongst the best in their field, if not the best, and that's the quality of the team that we've brought in.
The great thing about it is the team that we're working with, and on the technical side, Luke Mahoney, Deshnee, and the rest of the team, have been great in engaging both at the corporate level and in particular at the sites. It's very much about identifying what we see as opportunities, more importantly, balance that with what the team sees locally and making sure we bring those pieces together to find what we think are the right solutions as we go forward. It's not an easy process. It's always a little clunky when you're bringing so many dispersed people together, but certainly, so far, the feedback has been great from all of the sites. By the way, we only finished the process last week, so you're getting an early view on what we're thinking and what we're seeing.
You certainly won't get the finished product today, but hopefully you'll get a sense of what we're seeing, where we think we're going. First point, as Deshnee said and, and Eduardo said, we're all a works in progress, but there have been some very specific milestones delivered. In terms of what we see, one, resource endowment, exceptional. Copper in Brazil is as good as anything I've seen, and certainly, I think over the next two or three years, a lot of excitement in terms of best of Salobo, what follows Sasego, and also the broader exploration potential. The Sudbury mines and the new opportunities in Sudbury, I think are quite significant.
And yes, we've been there for 100 years, and in terms of our conversations, we were talking about the next 50 years, as that's a great place to be, and a lot more work coming out of Sudbury that I think will be very exciting, certainly over the next 12 months. Manitoba, ultramafics, new exploration province in our view, and given the work at Mississauga, we think has great, great potential. Voisey's Bay, when we talk about Voisey's, we look at the project, yes, it's a bit behind, but we also see potential to add the disseminated ore to the current feed mix, which we think will materially improve the economics of the project going forward. Mine development and inventory is a big issue, and I'll talk about Salobo and, and what was done in the last 6 months with the team.
Really significant improvement, but to make that improvement sustainable, we have to get our mine development right. A lot more work to be done on mine development across the group, and also asset integrity and the reliability. If I took Carlos's presentation as an example of where we need to go, we'll be hot on his tail trying to replicate those sort of improvements in terms of what he's done with the operating models. Flow sheet, another big issue and another big opportunity. Firstly, making sure we've got the right materials going through the right plant. We still see a lot of opportunity for optimization. For example, on Sudbury material, going up through Long Harbour makes a lot of sense to us in terms of simple changes, but quite a value-accretive step.
Marketing products to best customers to realize value and use, we still think is a real potential that we haven't fully pushed. And then best prices reflecting quality, value, and use, we also think is an important point. So for us, it's about focusing on margins. So with the existing business, the question is: can we improve our margins by 30%? That's both cost and revenue, and that's something we think we can get to with the existing operations. And then when we look at projects and new opportunities, what can we do better and make sure that we focus on getting the concepts right?... and then moving our projects. And we think there's been a tendency to push our projects through a little bit too early, and not get the right concepts in place, and that's where we think we can make significant improvement as well.
In terms of the identified opportunities through the asset review, we've tried to tailor the teams that have been involved for each of the assets. That whole team wasn't at every asset, but they went through most of the assets. We made sure the skills were right for the application. The local teams were the key, and marrying those perspectives was really important in terms of understanding what's possible and making sure that we got buy-in and support from everybody in the process. To start with, the first port of call, Carajás. We talk about the right potential. At Salobo, credit to the team to get the project away.
Work now going on and making sure that the operating details are right, and I'll show you a chart in a second that give you a sense of what we were doing over the last six months. But again, the team's done very good work to get us there. We need to do much better on the productivity side, and we think the shovel productivities need to double their current performance for us to be at a place where we're comfortable that we're in the right ballpark in terms of performance. There's also significant underground potential, we believe, below the operation. Significant footprint that we think needs to be tested over the next year or two. Mississauga, getting the satellites in, we also see underground potential there, so a bit more drilling there required.
Alemão, we've worked with the team, and with the team, identified slight changes to the mining method. So it's still being a sub-level mining system, but we believe we can use the tailings back in the system, or 70% of the tailings, to change both the economics and the ability to create a very different footprint for the project. So it certainly enhances its potential. At Salobo, I think it was really important to just make a couple of observations. Salobo, we started at Salobo on the second of July. So we started in role on the first of July. The asset review started on the second. Salobo was our first point of call, and over the first week, the team looked at the improvements that had been delivered, and that was really encouraging, particularly on the reliability side.
But then, if you look at July 2023 through to September 2023, the improvement in the production rate was a function of focus on the quality of drill and blast, making sure that we're getting the right feed to the stockpile, managing the stockpile, and they were having bridging on the primary crush. And I'll, I'll mention these points 'cause I wanted to just show the degree of detail the teams went into. So changed the way we fed the primary. The crusher behind the primary, in front of the mill, was then managed quite differently, so we maintained a consistent feed to the mill, and over that time, we progressively improved production by up near 30%. So the focus on the detail is absolutely critical, building off the work that had already been done, and for me, that's really important.
Basically, we said: Look, it's great over 2021-2023, you've improved 5% a year, but when you're 50% below what I'd see as a minimum expectation on the shovels, we've got to go to a different place. You've got to change the conversation. So we're changing the conversations, we're changing expectations, and over the next year or two, that's where we believe you'll see potential for significant and continuing and significant improvement. In Canada, people—we talked about the title of this slide, but balancing potential and mature assets, somebody had despite mature assets, we put and mature assets. Yes, they're mature, but they've got lots of potential. There's lots of experience. We should be doing a lot better. Through COVID and those periods, we ran our development down. We're now pretty well hand-to-mouth on development, so we've got to push development.
Again, focus on the basics, and there's certainly, we think, a lot more potential to be had from Sudbury in particular. And we've also questioned and asked lots of questions around geology and what we should be doing on the exploration front, and we think there's a lot more potential that again, we'll unpack during the course of the next 12 months. In Manitoba, we see again, the ultramafics as the key, and that's where the team's pushing now in Mississauga and looking at the test work, trying to see if we can bring something together, as we did back in Western Mining around Mount Keith, for those that can remember a very large ultramafic deposit that was turned into a real winner, a 3-year payback back in the 1990s. Doug Upton will remember that extremely well, I think.
At Voisey's Bay and Long Harbour, the fact that we can add the disseminated ore to increase the production from Voisey's Bay helps fill Long Harbour, and by bringing Onça Puma up and looking at other feed sources, we can fill that facility, producing high-quality nickel, which again, also helps us leverage our price position and our margins across the business as well. Now, in terms of optimizing Sudbury, just a little more granular detail. We looked at every mine. We looked at every mining method. We looked at every cut-off grade conversation and strategy. And for example, at Garson, by dropping the cut-off grade in the ore body by 0.3%, we literally double the resource. The cost of mining that incremental ore, which is shown in yellow against the previous designs-...
Actually allows you to produce that material at a lower net cost or a low, lower average cost than the average cost of the mine production that's currently being produced. Now, it's only about 15%-20% of the, of the total ore feed, but we're doing that type of analysis at every, at every site, looking to optimize and improve each of those resources. And that's why I said there's a lot more we can do, a lot more we can do on the processing side. We're currently processing 3.4 million tons. We believe we can get to 6 million tons. Creighton, Copper Cliff, those operations have got tremendous potential, and with an improvement in the development and better balancing and more reliable operations, we think we can get to 6 million tons.
We've also got a couple of small open pits that can help bridge us there as well. So again, very excited about what we see at Sudbury in terms of potential. In Indonesia, I won't spend too much time because you're aware of the projects and the push. Today, Indonesia represents 48% of the world's nickel. It's a critical country for nickel production, and we will be participating in that growth. There's more improvements we can make to Soroako in terms of operating practices, as you'd expect. The investment in the new development at Pomalaa looks pretty good. The Chinese approach, we think, is pretty impressive, and we've got the copper potential at Hu'u.
Now, Huayou is one of those things that we've gone back a bit into concept to make sure we solve some of the technical issues before we drive too hard into developing the project. So a bit more work required there, but certainly a great resource. On the global flow sheet, what I did want to do is just take a step back and say, if you look at what we've got on the ground in terms of capital employed, and across the whole business, it's, it's a tad less than $20 billion. There is so much we think we can do with where the molecules are going and who we're sending our material to and the price we're getting, that we look at cost reduction as a key strategy.
But running a very close second is making sure we're processing the right materials, taking as much as far downstream as we can to create better margins. And so when I talk about a 30% improvement in the business, it's a 30% margin improvement we're chasing. So we're looking at both cost and revenue in driving that improvement from the existing business, and that's critical. In this approach, we also think about recycle circularity, also playing in a very different space in terms of sustainability and making sure that we've got a full picture on the business as we go forward. And then finally, just to wrap it up. Good place to be: copper, nickel, great partners to steel in the longer term, and obviously iron ore.
The business needs to focus on what we can control better than we have, and that, we believe, is a key part of the transformation that we're going through. But I must acknowledge the good work that has been done so far. In terms of opportunities, in my 47 years in the industry, I've not seen a better set of endowment opportunities in an existing business. It will take us a little bit of time to unpack it, but in my view, it's material and it's significant, and over the next year or two, you'll see a lot more information come out from whether it's in copper in Brazil, whether it's in Sudbury, or whether it's in other parts of the business. We've got the right assets, we understand the jurisdictions, and at this stage, I think we're in a very good place.
From our point of view, it's a great foundation for achieving superior for performance. Again, I acknowledge the iron ore team for the good work they've done, and we certainly will be hoping to give Eduardo a few more headaches in terms of capital allocation over the short, medium, and longer term. We think the new vehicle that's been set up provides us with the scope and the flexibility to chart a course that's appropriate for the nature of this business. With that, I'd like to say one other thing. I'd like to acknowledge Deshnee's wonderful contribution in the business, both as CFO and as CEO. The work she's done and the hard yard she's taken in the carve-out and other work has been significant.
I know Eduardo will want to say a few words later as well, but for me, Deshnee, thank you very much for the great work you've done.
All right, so good afternoon, everybody. Thanks, Mark. I have to tell you that we are thrilled to have you joining the family, and really looking forward to this partnership. So what I'd like to do is to start with a summary of everything we've heard and what does that mean in terms of potential value unlock. So this is like, this covers each one of the key topics that we discussed earlier today, and I want to give you the perspective from the value potential, right? The first one is on safety, and particularly regarding the dams at Level Three, right? We are doing a lot on ESG, and I'll talk later about it, but the dams at Level Three, we know are a significant constraint for a lot of investors to be positioned at Vale. It's a current restriction that we have.
It does put us outside several of the key indices globally. We are out of the UN Global Compact. So the fact that we'll be out of, having three dams or two dams at Level Three by 2025, we think it's going to be a substantial de-risk in the overall story.... Second one is, about operational stability. We've heard, we've heard you guys, over the years, this has been a topic of concern. I think Medeiros has highlighted all the improvements we've done over the last several years. I think today we have a much more predictable business. When you look at the leading indicators, meantime between failures, availability of equipments, everything is substantially better this year versus last year. That, that's what Eduardo was saying.
It does give us a lot more comfort, a confidence about the ability to deliver this year's guidance and the next year's guidance as well. Third one is the capital growth and the potential to add 50 million tons over the next couple of years, especially in iron ore. I think Spinelli highlighted how low was those projects in terms of capital intensity. It's a very unique competitive advantage of Vale. We'll be able to bring 50 million tons of high-grade iron ore within the $6.5 billion CapEx program. So I think that's one of the unique advantages and competitive advantages of Vale, with a side benefit of driving and bringing our C1 below $20 per ton.
We're also gonna have, as we highlighted, an improvement in the iron content as a result of bringing those higher quality projects in the next couple of years. So I'll show you how does that look like in the next couple of slides. Energy transition, we just heard from Mark, a lot of exciting news. This year was very important for us, bringing this business to where it is today, creating the vehicle, and I think we are set for success there. Just in the next couple of years, there will be more volume coming. We are highlighting the Sudbury, 70 kilotons of additional copper production, 55 kilotons of additional nickel production. So this is already contracted, and you're gonna see this in the numbers going forward. The last one, the ESG agenda of Vale, is broader.
But one particular element, especially when you look at cash flow, is regarding the capital commitments for us to perform on the reparations, right? We've been spending around $3 billion every year on those commitments. Next two years will be along the same lines. I'll have a chart about that. But going forward, when you look at on an average basis from 2026 to 2030, that $3 billion should come below $1 billion, which will help us free up cash, potentially, for our shareholders. So let's get into cost in more detail. So starting with 2022 this is a picture of the total fixed cost of iron ore.
It's a proxy, doesn't reconcile entirely, but it's a good proxy in terms of the C-1 cost because we also have fuel costs and other things in the total C-1. But just to give you a sense of how we are thinking about managing our overall fixed costs in the company. Starting from the left, $5.7 billion, we had some external effects, primarily FX, which was $0.2 billion there. And then we have what we've been talking about, new way of operations. So those are new stage or steps in the processing facilities of Vale to date. We're talking about filtration processes, dry stacking, those added cost to our base.
What we've been doing over the last several years, the last three years especially, is to work to offset inflation with the initiatives that we've been implementing internally at Vale to pursue more productivity. So there's a series of initiatives with better sourcing, specification reviews, overhead reduction. And for the next year, you should see us being able to capture even greater value from those initiatives, being able to offset from our perspective and our expectations to actually do better and have a lower cost as compared to the inflationary impact in the year. So what does that mean in terms of C-1? C-1 for this year is expected to close at $22.5. For iron ore, we are guiding at $21.5-$23. This is as a result of volumes being flat and us being able to offset inflation.
Going forward, as we look at 2026, you see the material improvement, especially as we bring the 50 million tons net of depletion, for the next 2-3 years, which will improve not only from the dilution effect, but also from a better mix. Products that will come, will come with lower cost. From the all-in standpoint, first, iron ore, expecting to close iron ore this year at an all-in cost at $56. We are guiding next year between $53-$57, so similar story as the C-1. So being able to offset inflation in the year, and the real benefit will come as we bring those additional volumes by 2026. There is also an assumption here, which I think it's important to highlight. We are assuming premiums flat year-on-year. So this year has been challenging on premium.
We are assuming the same scenario for next year. Potentially, as Spinelli highlighted, there could be an upside to the case here. Let's see how it evolves. For 2026, then we have the benefit of greater dilution. Copper, $3,400 per ton, expected for this year. Next year, $4,000-$4,500. It's mostly as a result of lower grade expected in Salobo in 2024 and the associated revenues or lower revenues on byproducts. There is also some incremental investments that we are doing to continue to enhance the performance of Salobo. We are getting to an end of the asset integrity program there. In 2026, then we should have a better performance with dilution effect. We are also bringing Bacaba-...
Additionally, highlighted some of those projects in her presentation. Nickel, better next year, especially as we bring VBME. VBME is coming around August timeframe, so we don't capture the full benefit, and you're gonna see the full benefit, especially in 2025 and onwards. So I won't go into all of these projects. This is the pipeline of projects being implemented at Vale. We have, as we speak today, we are building 10 projects in the company. What is important in this slide is that everything else constant, those projects should be bringing $4 billion of incremental EBITDA as they reach conclusion, right, in commercial operations. We are bringing here this year, new information that we haven't shared in detail with the market, which is the weighted average return of those investments, right? Assuming competitive, curves, price curves, going forward.
So iron ore, 30%+ IRR, ETM or energy transition metals, 15%+, IRR. And you see that there is a pipeline of projects that we are very excited about, and we will talk about that at its, its due time. CapEx controlled, we want to maintain, as I said before, a CapEx around $6.5 billion. This is a new breakdown. First time that I think we are sharing this, where we give the breakdown between iron ore and base metals. So iron ore, $3.5-$4 billion, base metals, $2.5-$3 billion. So we want to start to bring more information about base metals as a standalone company. That's one of the things we'll, so we start. You, you're gonna hear more from us about, about those, those details.
So that's one piece of the information. I won't go into detail here. This is just a table that I'm sure it helps you to think about and understand what is our expectation of cash commitments. As I said before, over time, this should be reduced, and we should have lower cash burden or cash impact as a result of the reparation. They are being performed. Eduardo highlighted all the initiatives and all the investments we are doing on those fronts. This is a simulation of potential EBITDA by then, right? As Eduardo highlighted, and it's important to reinforce, a lot of those actions that we've talked about, they will come between now and then, not in 2026. So we will capture some of that $4 billion EBITDA, Vargem Grande, for example, it's coming online by the end of next year.
So a lot of that EBITDA will come over time. We wanted to focus this from an illustrative purpose here, to focus on 2026. This is in real terms. So our expectation is that under different prices, you can pick the one that makes more sense for you. We see that the company generates a very strong EBITDA under different prices, even more conservative, commodity prices. And on a free cash flow yield, you see the same story. The company, in most of the cases, from our perspective, being able to generate double-digit free cash flow yield in the next, following years, especially in 2026. So before I hand back to Eduardo, I just wanna highlight how we're thinking in terms of capital allocation, right?
You probably know this information, but we have paid the highest dividend yield in the industry from 2020 to 2023, right? Those are our peers. Real data, actual data. So you should expect us to continue to be extremely disciplined in terms of how we allocate our capital. We've paid $29 billion of dividends, we've paid incremental and additional dividends, and we've been performed consistently on our share buyback program. You probably know this information, but since 2021, we repurchased 17% of our share count, and we have a new program approved recently with our board for 150 million shares, and we will perform and execute on those programs as we've been doing over the years. So with that, I'd like to invite Eduardo back for his closing remarks.
Thank you, Gustavo. I bet you're more optimistic than me. Come on, guys. I won't go over this, but of course, we've we are building a strong foundation to capture the endowment that we have within iron ore and iron ore solutions and base metals. Well, I think the most important thing here, I was thinking while I was listening to the presentation, what a great team that we have built in Vale. I'm really proud of it. I think there is only half of our team here. Only the other ones are in Brazil. There are friends as well in Canada, where we run base metals.
But I really like to thank them for their hard work, thank our 180,000 employees for their hard work, because as I said before, we are building a great Vale. We have, we have been building, we are building this great Vale, but I'm truly confident that we can build even a greater Vale. With that, I would like to thank your attention and of course, take your questions and answers. Okay, thank you very much.
Right, we do have the microphones.
Well-
First question, Daniel.
Hi, everyone. Thank you so much for the presentation. Good afternoon, everyone. Daniel Sasson from Itaú. My first question is regarding the supply and demand dynamics. I think it became very clear that, with your guidance of unchanged volumes for 2024 and some of your peers didn't differ that much, that the supply side of the equation really seems clear. But if you could comment a bit on the demand side, especially in a year that demand has surprised the positive, on the positive side, right? Even with rather weak property sector in China, iron ore demand throughout the year has been pretty resilient, and iron ore prices have stayed, or have been higher than what most analysts forecasted by the end of last year.
So if you could comment on your views for 2024, and maybe more specifically, if you have been feeling any impacts at all from the centralized entity that is now coordinating part of the buying or the procurement or buying efforts from Chinese steelmakers. And my second question on CapEx, if you could comment a bit on your expectations, especially for CapEx expected to be deployed for the base metals division or the main drivers behind the implied increase in 2024 versus 2023, given that-
I can do it.
You know, as if I'm not mistaken, you have only S11D to be that has been approved to be delivered, and what is behind those levels? Thank you so much.
I can do it.
Thank you, Daniel. Supply demand is tight. Supply side is tight when we think about that we have some players that are moving out to the seaboard market. I mentioned the last conference call, India is focusing in their own development, and we, and we have a-- Actually, you know, this is not really specific, but we see supply lower, lower than demand, 10 million, 15 million. So that's the overall picture. Demand side, China, we have-- we could, we could believe in a, in the, in the stability, but we have two very powerful actions that will emerge less in next year. So, one trillion for infrastructure, CNY 1 trillion for the property. So we'll see this impact in the, in the, in the demand side.
I mentioned a China resilient when you think about the, the kind of... It's funny because we saw their five-year plan, and they mentioned, "Oh, that will be a quality development, a quality development." What does it mean, quality development? Now we can see what they're doing there. It's emerging a fantastic industry, very high-end industry, and they need more quality in the steel, in the steel mill. So we see shifting from rebar to flat, high-quality flat. That is implying a more pig iron production. So take a look on this gap that is widening, and we have pig iron production and also the rebar and the EAF production. On the other hand, ex-China is we expect to be much better than this year.
So, we expect a growth of 2% or 3% more. It's a worse base this, this 2023. And our forecast for China next year in terms of production, CSP production, it's above 1 billion, less than this year, something around 10 billion. But again, with more iron ore, with more pig iron than, EAF. So when you see all this, the, the market is really tight.
So on the CapEx, the delta is mostly growth projects, the ones we talked about, so accelerating some of those investments. It's, it's a minor increase versus where we are performing the 6 versus 6.5. So we think it's, it's reasonable. For base metals, what we announced it publicly is the $25 billion-$30 billion of total CapEx. If we were to do the entire program to get to 900 kilotons of copper, what we've been saying is that this is probably not in the shorter term. It will depend a lot on how the team develops and accelerate those initiatives. So in the next 2-3 years, probably we'll stay at those levels, and then if we have further opportunities, we will, we will assess the best way to fund them.
You mentioned CMRG, right? China is a long-term partner for us, so we rely on them. So we are really engaged, and I think we are the provider or the supplier that's more engaged with them in terms of services, blending, concentration. We are very innovative. They mentioned once that they call us the Tesla of iron ore. We had this feedback from them. So really close to them. When you talk about CMRG, we have a common, I can say, a common problem that we can reduce the cost. So it's a win-win cooperation. What you have to do together, so we already doing, actually. We can reduce the cost of ports, inventories, supply chain, planning.
Sometimes the reselling of iron ore coming from the steel mills that makes some noise in the market. So they are organizing all of this, and we're working today. So we see this as a win-win cooperation. Price is market supply demand market basis, but we see a potential efficiency coming from them, and we can add a lot of initiatives.
Leonardo.
Good afternoon, everyone. Thank you very much for the presentation, Vale. Leonardo Correa from BTG Pactual. So Mark, I think the first question to you, thank you for the presentation. I mean, you started out by talking a lot about what you have been doing over the past weeks with the team. You talked about management changes, you talked about the asset review, which is currently underway. I just wanted to hear you a bit more on what are your key objectives for 2024. I mean, nickel markets have been very challenging over the past year, right? Prices are down 40%. Many people are questioning the energy transition theme behind nickel.
So if you can also talk about your, your view on nickel longer term, and if you still are a believer, I think that would be very helpful. And, and the second question is, just on the iron ore production story, right? I think, Eduardo, talked about this. Spinelli, you talked about this. Medeiros, and Gustavo, everyone talking about the iron ore growth story, back at Vale. But the reality is, is that in 2024, there's no growth, right? Pretty flattish, even though high conviction. We know that in 2026, you're aiming 340-360. But the project that's S11D is only expected for the second semester of 2026, right? So how, how can we view 2025, just the buildup, right?
I know it's very early for guidance. We're going to have to wait another year, right, for that, but -
For sure.
For sure. But just thinking conceptually, right? I mean, if we can run through those building blocks, given Vargem Grande and Capanema, would it be reasonable to assume that the 2025 story would be a, a transition with some growth, maybe 10, 15, 20 million tons? Does that seem okay for you guys? So thank you very much.
Thank you.
Thank you for the question. I think the key things, or I know the key things that we're talking about for 2024 is firstly, every team has to understand the resource. So we're taking everyone through understanding and understanding what endowment looks like. That is, what's beyond resource? What's the potential? Because if I use Salobo as an example, if the endowment is what we think it is, there's an opportunity to continue to push on the production base, so we have to get the shovels up, first point, so we can improve volumes. But we can also work with cut-off grades and start pushing higher grade through, which is an important issue for Salobo because its grades drop off in the next two or three years. So that's a real game changer.
Understanding what you've got and what you can do inside that resource is absolutely critical. I'd say that story for every asset. Second point-
You know.
We've tended post-COVID to be driven by the budget conversations in getting our cash flows balanced, which Pimenta is absolutely right pushing. But what I'm saying is there's a cost to some of the things we've done in the business on development, and we're sharing some data from the review that's saying if we can push out our development a little bit further, get our buffer stocks right, there's a 20%-30% improvement in productivity we can drive over the next 12 months, which makes a very different proposition for the business. So the question is: How much can you afford to spend and invest, and how do you get yourself in that position over the next 12 months?
That's the right debate, getting that decision-making right and getting each team to justify where they're going to put the money and what they're going to show as part of the delivery. So that's a process. Now, the third point, planning and scheduling. Carlos actually said it today on the reliability side. Most people understand what a plan is, but they fall down when they try and schedule-
Mm-hmm.
Which is the detail. And we've lost some of those skills, so rebuilding that skills base. So by the end of 2024, I'm hoping to see that we'll have improved. We'll certainly improved our understanding, we'll improve performance, we'll set a platform so that by 2026, we really are starting to hit some, I hope, very positive numbers compared to what we're even forecasting today. So that's it. On nickel, I'm still a believer. There's no doubt it might take a little bit longer to get to the prices we'd all like to see, but I think the fundamentals are still... I mean, copper is just outstanding, and I think with what we're seeing in the world today, that's really going to kick.
But nickel will be a bit slower, but I'm still a believer in the fundamentals in terms of the industry, and I think the changes in China are also helpful for nickel as well.
Yeah, next year.
Maybe just to add on that, Leonardo, on nickel. I mean, we're the majority of our sales are Class 1, so we still, you know, banking the premiums that come with the Class 1 market, and we haven't transitioned as fast into the EV sales because we've always said that we will do it for value. I think just touching on Mark's point on nickel, yeah, we do believe that this year, on the back of what we're seeing out of China's recovery and some of the surpluses that I believe have already been priced into this year, should unlock a little bit next year. So I hear you, but I think we're in a better position than some of the other producers, given our product mix.
On the guidance, maybe to close on the guidance, good try. We won't give you the 20. But, what I can say is the 2026, when we see that depletion, delays, others that we have there, we already account for the +20 to come substantially later in the year, right? So that is in our assumption already. But certainly, without giving you a number for 2025, Vargem Grande is coming by the end of 2024. For us, we are less concerned with detailing specific numbers, but very concerned or very focused on the degree of certainty of the plans that we lay out. So even though...
And just to make sure what Carlos reiterated today, which is important, even though with the guidance next year is similar to the production of this year, it was done with a higher degree of certainty based on all the elements we know about the production. So that's the way we've been operating, the way we wanna continue to portray the guidances and going forward. So that's what you should expect from us.
Take a couple questions at the back. Tyler?
Thanks very much, and thanks very much, Eduardo, for bringing Vale Day to London at first, so that's nice to see.
Thank you.
Thank you from here. I've got two questions. Mark, it feels a bit like we've gone through a bit of a time machine here, and I'm sitting here in 2017. I might be a few pounds heavier, you might have a little less hair. But, you know, we're basically on, you know, it feels so much like the start of what it was with the Anglo journey. How do you characterize the differences, I guess? Obviously, you were successful at Anglo in terms of turning that company around from a position where it needed a lot of help to, you know, and seems like the Vale Base Metals business, you know, despite the great work that she's done, you know, you still got that path to go.
So what are the key differences that you see? And then the second question is for Spinelli. In terms of the iron ore market right now, you know, one thing that's been beleaguering the Chinese industry this year has been relatively low margins. If you look at the inventories in China, the Brazilian inventories are a lot higher than the Australian ones, which is clearly because they want to use a lower quality product to help their margins. How do you see that developing over the next 12-24 months? And has the structural change shifted the margin position for China, do you see? Thanks very much.
So, Tyler, I'm pleased to see you observed that I had a haircut for today. In terms of, you know, it always very dangerous to compare one against the other, so I'll steer around that a little bit. But we have significant opportunities, and the team has done really good work. Coming out of COVID, I think everybody's had lots of issues. We're no different, and particularly on that development, reliability front. So we've got to boldly step out and address those issues with the team, and I think that's what the asset review team has helped do with the young team members, in particular, across the board, and I think that's an important step.
And I guess we did learn from some of the processes we used at Anglo, but what I would say is, I think every business should go through a similar process every five years, and, and in fact, we've been talking about the same sort of exercise. And so I think it'd be fair to say the next year or so will be bumpy, and I'm drawing on 47 years of experience, is while you're tight with development, you're not going to have the reliability you'd like. We understand that. We're in that debate, but each year, as we go forward, we'll get better and more reliable, and I think we're probably three years behind, Carlos, would may be my guess, in that journey. And the, the, the question for us is: How quickly can we bridge it?
I said, with the asset review team, with the teams that we've got, and with the work we're doing, we think we can close that off a lot quicker, a year to 2 years. I would think that 2026 will be a true expression of what we think we can do, and not only will you see what we can do, you'll see where we see lots of value. I think that conversation next year will be important in terms of what we can see in terms of the look ahead.
Tyler, we see this 18 months, almost, with this low margin in the market. The last time we had this, it was less than that. We had that supply-side reform, that we don't expect that happen this time. So, the problem is in the demand side, so, price of steel. That's the key point here. And the demand, as I mentioned in the previous question, we believe that will be a recover, when you have the stimulus in place, mainly in properties. That is declining but, you know, almost stabilizing, with the offset of SOEs investments and also the social housing. But is-- There is a decline. On the other hand, the manufacturing is... In infrastructure, we should see some balance in the market.
So price should be expected, you know, at least in the second half. You see the premiums now are just a little bit better than two months ago. There is now a pattern of seasonality that we have, you know, an increase of the cost of coke that is seasonal in China.
So we, you have a peak now, but we see gradually a recovery of that, by the end of, end of the first half and the second half, we go back. At least we see that. Another point that is, you, you may consider that the, the Chinese behavior, they, they have goals. So they have to finalize the year. So they'll have another set of goals for next year, that probably we will adjust this, this necessity to produce or keep the, the machine running, then we adjust the, you know, the, the size of that, even the export. So we see more organized business for next year.
Let's go to Alfonso. Thank you.
Alfonso. Thank you. Alfonso Salazar from Scotiabank. Spinelli, that's for you. I haven't heard—we haven't heard that much about value over volume lately. So, the question that I have is, let's just assume, for argument's sake, that the demand for iron ore three years from now, is not, as strong as you expect. So what can Vale do to adjust to those market conditions? That will be the question that I have.
Okay. The answer is segmentation. So, when you talk about an additional 50 million tons, we are always emphasizing that is regarding the quality. So we see a growth market for pellets or briquettes, high-grade ores. So that's the key point here. If you don't see this market, or if there is a delay in the M ega Hubs, we are only going to bring briquette plants or increase this volume. If you have... And actually, it's very important to say, because it's a new way to define the relationship with the clients. We are not building hubs like we have in Tubarão and producing to the world. So we are building together.
We are together defining the investment in any place, in Oman or in the US or in Brazil. So that part is really adjusted to the market. And if you don't see a market to this level of volume, but you need to think about what is low grade, what is mid-grade, what is high grade, and what is pellets and briquette, we have to adjust. So we don't have any problem. And we can do this because we have flexibility in our business. Carajás in one point, we can blend. So we can see this more and more flexible because we have a supply chain, very, very sophisticated.
And sustainability.
Another, just another question: We are open other markets. That can spread the risk when you think about the... So we're moving to the Middle East, that is feeding the U.S., that is feeding Europe or feeding the Asian market. So that's another point, spread the risk and open other markets and balance the supply.
Yeah, yeah. Just to add one thing, I think Leonardo was to the point. I think when we're really gonna release capacity, actually is when the crusher is gonna come on, the big crusher on the S11D. So then we would do actually the value over volume-
Yeah
When we have volume.
Mm.
So that's the point. And we would have to have the hard decisions. We have high-cost mines that we can shut. So there are things that we could do eventually if the market doesn't show up. But we truly believe the demand is coming, but it's not. We still have a lot of levers inside Vale to do it. That we cannot do it today as we speak, because the flexibility we don't have. As we get predictability on, and of course, the projects executed, then we can do the decisions that we don't want to take, but we could take.
Let's go to Caio and then...
Hi, Caio Ribeiro here from Bank of America. Thanks for the opportunity. So I have a couple of questions. You know, first of all, on the Samarco renegotiation process, right? We know that negotiations are ongoing. You know, some press reports indicate final number, you know, even upwards of BRL 100 billion. But at the same time, you guys showed a slide where you show that there's already been BRL 34 billion spent. You have over $3 billion worth of provisions. And Samarco itself, you know, is expected to double production in 2025. You know, with these higher iron ore prices, cash flow generation should be higher as well. So I'm just wondering if you can help us, you know, reconcile these different moving parts.
You know, how should we think about these things, you know, particularly in the context of additional provisions, right, that the company could end up booking? And then secondly, on iron ore, you know, I have a question that's more of like a short-term but also long-term perspective here. You know, short-term, we saw that, this year, the mandatory production cuts in China weren't really enforced, right? So I just wanted to get your perspective as we look to the years ahead, you know, whether you see this, playing out in a similar way. You know, do you see any fundamental reasons to believe that, you know, they won't enforce these production cuts at least as rigorously as before? And then, you know, on a more long-term perspective, you did touch on the point, Spinelli, of India.
You know, they do have plans, you know, in the next 10 years to double steel production, right? So I just wanted to see whether you see that as an opportunity or not. Thank you.
Okay, I'll start with the Samarco, then Gustavo complete. What we want to do with Samarco, and we are on the table, we do truly, as I mentioned, we want to get to a, to an agreement, but an agreement that has to have the same similarities that Brumadinho had. We need discharge, we need a, how can I say that? Transform obligations to, to do, to pay.
And we're still on the phase of negotiating the architecture of the legal agreement. And as Gustavo is negotiating that, could give some more color and go after the fact that it's true. Samarco will be very healthy in 2026.
Yeah, look, the focus has been on performing on the 42 programs, and that's, right, more than 400,000 people indemnified. The water is at the same conditions as it was before. So all of that is moving along. In parallel, as Eduardo said, we are working hard to finalize the agreement per se, which is complex, because it involves several parties, right? After that, we will then engage in negotiations to finalize the numbers. I think what we always say, it has to be a text that works for everybody, for us, but also for the government and the governments in this case, and all the stakeholders. And that applies to Vale as well, right? So our belief is what we have in our books is the right amount to fulfill those obligations, assuming...
Remember that Samarco, the agreement we had with the creditors, has a cap of $1 billion, so that constrains a little bit, although it has some cash sweep opportunities, but that's too specific. I think for us, it has to be a value that works. It has to work for the government, for sure, but also it has to work for the sponsors, and it has to be a number that we can stand behind and defend in front of our shareholders. So, you know, all of that to say, we believe what we have in our books is the right number. But we continue to be constructive because we think and we understand that a resolution here is good for everybody, right? So we're gonna work very hard to be able to, to reach a final resolution.
Caio. China is much more resilient than we could expect. This is amazing because even as all of us here, analysts, investors, used to track China in a way, they are changing so fast. One example is about properties. We expect that something go really down, close to minus 10%. It's not that, because you're tracking wrong numbers. They are changing their manufacturing from toys to, you know, to machines for to electrify the world. We didn't track that. They're improving their quality. So we have all the micro information, micro economic information that are really good. So where are the steel? Because they are doing something. We need to reshape this and check this again, because we are not tracking. We have this problem because there's the reconcile is not working.
So this, that's the resilience that we should pay attention. But look, what I see that it probably will decrease next year is the export. So as the level of 90 million tons, our forecast probably go back to 60 million tons. We don't see a mandatory cut, but actually, the rebalance of the internal demand, when you consider all this, and an increase, a better increase, or a better level of price for steel, that can rebalance again the market. So that's what we expect.
Next question, Amos. In the middle here, please.
Thanks very much. Yeah, it's Amos Fletcher at Barclays. I just had a question on the base metal business. So just looking at the EBITDA break-even numbers you're presenting for the nickel business, and using spot nickel prices at the moment, and obviously a bit of a risk, that those could come down over the next couple of years, implies not a lot of EBITDA generation coming out of nickel. And if we then layer over $2.5 billion-$3 billion of CapEx as you're guiding, the business doesn't look likely to generate much, if any, free cash flow over the next few years. So I just want to ask, how do you propose to fund that negative free cash flow, given Vale Base Metals now has to operate with its own standalone balance sheet?
I can. Vale Base Metals also has Salobo. So your statement is correct for the nickel business, which is a lot tighter, and it will depend on how prices recover, if they do recover, and by when they recover. But copper continues to be a very healthy cash generation business. So when you look at the overall base metals organization, it does have a very healthy capital structure, cash generation, which will be able to, they will be able to accommodate even stricter price projections. So remember, when we announced the transaction with Manara and Engine No. 1, we've also agreed to leave $1 billion at the business. So the business will be starting with a net cash position of $1 billion. So we have, there's plenty of room for us to accommodate temporary market conditions, especially given the strength of Salobo and Sossego.
Yeah, that's a point. And don't forget the strength of copper.
Yeah. We, you know, base metals starts with a generally unleveraged balance sheet-
Yeah
From day one.
We have time for one last question. Please, in the middle.
Thanks very much for the presentation. It's Grant Sporre from Bloomberg Intelligence. It's a sort of a follow-up question, probably for Spinelli. It just seems to me that the quality premiums on iron ore are still cyclical, and we're not really seeing that sort of upward trajectory that certainly I expected, and I think you expected as well. So what needs to change? Is it more consolidation in the Chinese steel industry, or is it your strategy of switching to the Middle East and not being so dependent on China for your premiums? What needs to change for that structural increase?
Cost of energy.
Mm.
Yes, uh-
Well, what are the main elements that make our clients decide for a high-grade ore, so and increase the premium? So cost of energy is the first one. Coke, cost of coke, when you increase this, you have to save energy, and you do this. The other point, when you have to improve your efficiency, you want to produce more. And to produce more, you need price. You need to make money. So that's the problem today that you have. Sometimes you can have more because of the cost of energy, more because of the—you can make more money, so you can do this. But mainly, what is the fundamental of a long-term view that we are remain really confident about that? Energy transition is the key for that.
So if you need to decarbonize, you need to save energy. That's mandatory. Otherwise, you cannot do with this. If you need to move from blast furnace to direct reduction, you need to use high-grade ores, and okay, there is a melter, but you could see the difference when you use the melter or the direct reduction that you have today. So this is a structural thing. That is already happening, but may take some time because you need it to, you know, all the CBAM that now is starting to be measured in Europe. We have a lot of clients, Chinese, even Chinese, Japanese, Koreans, going to the Middle East. Europeans going to the U.S. Europeans going to Brazil for greener business. So there is a roadmap to get there.
That's the way we saw. That's the way we showed. So from now, probably more short-term variation, as you mentioned, cost of coke and the profitability, but in the longer term, we have this structural transformation, cost of CO2, the necessity to have the transition.
I will now hand over to Eduardo Bartolomeo-
Okay.
for his final remarks. Thank you.
Okay, thank you, Thiago. I have two remarks to make. I think, first of all, great to be in London. I think it's always nice, and I remember the last time we were here. But the two remarks I want to make, first is to thank Deshnee. I think who would lived through what we lived through the last two years know how hard work was, how hard it was to do, and how successful was the carve-out, even in the value dimension. So thank you very much, and I wish all the best in the, you know, new challenges. And secondly, I and my team are truly committed. I don't like to think the idea of the 2026 as, but I will never want to not see what's going to happen in 2026.
So, we are working extremely hard on all the foundations, and I think we are just there, just very close to capture all the hard work that has been done in iron ore and all the hard work, and I want to see what Mark is gonna deliver for the second time, like, Rambo number 2. So. And I think, and again, thanks a lot for your attention. Thanks for coming, and of course, who's the ones that are watching us through the streaming, all the best and safe. And I will be here to answer questions that we might didn't have the chance to answer. Okay? Thank you very much.
Thank you.