Brazilian mining giant Vale plans to ramp up its copper production, acknowledged its new CEO, Gustavo Pimenta, on Wednesday, noting the company has fallen behind competitors in this key industrial metal. Although Vale is a leading global iron ore producer, it also operates in base metals like copper and nickel.
“We have fallen behind on copper,” said Pimenta, in his first public comments since taking on the role Tuesday, following his previous position as chief financial officer. Vale is projected to produce between 320,000 and 355,000 metric tons of copper this year, compared to more than 1 million tons by the top industry players, according to Pimenta.
At a press conference, he downplayed expectations of an initial public offering (IPO) for the company’s base metals unit, stating that such a move is not currently being considered. Vale holds 90% of Vale Base Metals, which manages its copper and nickel assets, while Saudi Arabia’s Manara Minerals, a joint venture between Ma’aden and the Public Investment Fund, acquired a 10% stake earlier this year.
Pimenta indicated that Vale would reconsider accessing capital markets once its copper production reaches an annual output of around 500,000 metric tons. However, he did not provide a timeline for when this target might be met.
Additionally, executives from Vale and Brazil’s state-owned development bank, BNDES, announced the creation of a 1 billion real ($183.6 million) fund to support local mineral projects that are crucial to the transition toward clean energy. Both Vale and BNDES will contribute up to 250 million reais each to the fund.
Pimenta, appointed as CEO in late August, concluded a succession process marked by the departure of some board members amidst accusations of political maneuvering.