Outokumpu Resumes Ferronickel Purchases from Vale After Sustainability Improvements
Outokumpu has resumed ferronickel purchases from Vale following improvements in the supplier's sustainability practices. The company had previously halted purchases in 2021 due to human rights concerns.
Finnish stainless steel producer Outokumpu Oyj has resumed its purchases of ferronickel from Brazilian mining company Vale. The company had suspended these purchases in 2021 after concerns arose regarding potential harm from Vale's Onça Puma mine to indigenous communities and the environment.
Outokumpu has since worked with Vale to enhance its supply chain sustainability practices, which are now reportedly aligned with the UN Guiding Principles on Business and Human Rights (UNGPs). Vale has implemented all recommendations provided by Outokumpu for improvement.
The initial concerns regarding Vale's Onça Puma mine were raised in 2021 by the Finnish NGO Finnwatch, citing issues such as pollution in the Cateté River and adverse impacts on the Xikrin indigenous community. Outokumpu subsequently conducted a human rights impact assessment.
According to a comprehensive audit conducted in 2024, Outokumpu stated that the mine is not currently identified as adversely affecting the water or sediment quality in the Cateté River. Vale has also expanded air quality monitoring, provided training to the Xikrin community, and improved stakeholder engagement.
Outokumpu emphasizes that partnerships are central to its approach to supply chain sustainability, particularly for critical raw materials like nickel. The company plans to continue monitoring Vale's progress and the ongoing situation through regular updates.