Vale has announced a slew of measures to help its suppliers, mainly small- and medium-sized businesses, stay afloat during the COVID-19 crisis.
The Brazilian miner indicated these measures would infuse Brazil’s economy with about BRL16mn ($3.16mn) during the pandemic, and help around 3,000 of its small- and medium-sized suppliers and service providers.
The initiatives include advancing payments to the suppliers even before they invoice Vale; reducing payment terms for materials and services by 85pc; and financially supporting construction companies whose work at Vale’s mines has been suspended because of the pandemic.
Alexandre Pereira, executive officer of global business support at Vale, said the company would use its distribution network and supply chain, as well as its mobilization capacity, to help its suppliers.
The company announced earlier this week that it was halting operations at the Teluk Rubiah Maritime Terminal in Malaysia until March 31, after it was unable to secure the minimum resources needed to safely operate it amid pandemic.
($1=BRL5.056)