Vale has established a corporate venture capital (VC) arm for supporting start-ups focused on developing disruptive innovations to address challenges in the mining and metals sector.

Dubbed as Vale Ventures, the venture capital arm has a starting budget of $100m for investing in companies engaged in sustainable mining initiatives.

The new business opportunities and innovative technologies are planned to be incorporated by Vale into its operations.

The new unit of the mining major is planned to offer initial funding and early-stage investments in start-ups around the world. It will have a goal of holding 3% to 5% stakes in the firms, reported Bloomberg.

Vale Ventures head Viktor Moszkowicz said: “We will collaborate with forward-thinking start-ups bringing big ideas and bold thinking to these monumental challenges.

“By creating a portfolio of disruptive solutions, we can generate financial and strategic return, and bring new business opportunities, insights, and knowledge to our company, customers and society.”

Vale Ventures will invest in start-ups focused on four themes. These include decarbonisation in the mining value chain, zero-waste mining, energy transition metals, and the future of mining.

It will invest in technologies that will help the mining major as well as its customers lower carbon emissions and support their ambition to become carbon neutral by the year 2050.

Vale Ventures will invest in start-ups engaged in decreasing waste and the environmental impact of mining while supporting the circular economy and creating new streams of revenue.

The new venture capital arm will support start-ups that will expedite the supply of essential metals for powering the energy transition and promote emerging demand drivers.

Besides, Vale Ventures will invest in disruptive technologies that will change the way miners operate.