Votorantim C. II

pending

Founded in 1936, Votorantim Cimentos (“Votorantim, “VC” or the “company”) is the largest cement company in Brazil and operates in 9 countries. The company’s portfolio includes cement, concrete, mortars, and aggregates. Votorantim also works in the areas of agricultural supplies, waste management and co-processing (https://www.votorantimcimentos.com/about-company/). In 2023, IFC provided a US$ 150 million A Loan (project #47515 - https://disclosures.ifc.org/project-detail/ESRS/47515/votorantim-cimentos-decarb) to support the modernization of the Salto Plant by upgrading existing equipment and expanding its co-processing capacity to increase the use of alternative fuels, including the installation of a material recycling facility (MRF) and upgrade of the kilns. The existing investment’s E&S performance has been satisfactory based on supervision to date. The Salto Plant has operated since 1977 and produces cement, ready mix concrete, aggregates, and agricultural lime. The total site comprises 242 km2 and includes two limestone quarries, Ponte Alta and Salto. Two closed conveyor belts transport limestone from the mines to the plant.IFC is considering a new investment that will consist of further improvements to the Salto Plant, including the installation of additional cement grinding capacity, a new cement silo, two bulk loading points, and part of a new electrical substation (“the Project”). The Project will increase the cement grinding capacity, producing 800,000 tons/year of finished cement. The Project’s area of influence includes the municipality of Salto de Pirapora in São Paulo State. Salto de Pirapora is part of the Sorocaba metropolitan region and is located approximately 25 km away from the urban center. The closest communities within the Project’s direct area of influence are Piraporinha, which is located approximately 1.5 km from the Salto Plant and the Fazenda Alta Vista condominium, which is about 3.9 km away. The quilombola community Cafundó, is located around 15 km from the Project site. As disclosed in the previous ESRS, the community José Joaquim de Camargos is undergoing a land demarcation process with the National Institute for Colonization and Agrarian Reform (INCRA by its Portuguese acronym) and no formal outcome has been reached to date.