Brazilian miner Vale is focusing on increasing its copper output, as new CEO Gustavo Pimenta acknowledged that the company has fallen behind its competitors in this critical industrial metal sector. Vale, primarily known for its iron ore production, aims to produce between 320,000 and 355,000 metric tons of copper this year, significantly lower than the annual output of over 1 million tons by leading industry players.
In his first public remarks since taking over, Pimenta dismissed the possibility of an initial public offering for Vale’s base metals unit, which includes its nickel and copper assets. He indicated that the company would consider tapping capital markets for funding only after increasing copper production to approximately 500,000 tons annually, though no specific timeline was provided.
Additionally, Vale and the state-owned development bank BNDES announced the creation of a 1 billion real ($183.6 million) fund to support local mineral projects essential for the energy transition away from fossil fuels, with both Vale and BNDES contributing up to 250 million reais each.
Pimenta’s appointment comes amid pressures from the Brazilian government to increase investments within the country, following a recent leadership transition marked by political intrigue.