Vale Base Metals Targets Doubling Copper Production by 2035

Vale Base Metals, a privately held entity spun out from Brazilian mining giant Vale S.A., is aiming to double its copper production to approximately 700,000 tons per year by 2035, according to CEO Shaun Usmar.

Speaking at the 2025 BMO Global Metals, Mining & Critical Minerals Conference, Usmar emphasized the company’s strategic focus on battery and critical minerals, citing its extensive copper assets in Brazil’s Carajás region. He described Vale Base Metals as "one of the best-kept secrets in the battery metals and critical minerals space," highlighting its polymetallic nickel business and substantial copper reserves—claimed to be the largest in Brazil, with over 30 years of resources.

Vale decided to spin off its base metals unit after nearly two decades to unlock greater value in its nickel and copper businesses, which had long been overshadowed by its dominant iron ore segment. Usmar believes the separation allows for more focused investment and could lead to a stronger market valuation.

To achieve its copper production goal, the company is optimizing existing operations and infrastructure. Usmar pointed to recent production successes, noting that "Salobo has just hit its best output in its history." He also highlighted the company’s "organic pipeline" of projects, including the Novo Carajás initiative, which aims to enhance regional synergies and partnerships.

While an initial public offering (IPO) is not imminent, Usmar suggested that taking the company public remains a possibility as it refines its portfolio and demonstrates long-term growth potential. "The first thing we have to do is create the conditions so that we can then determine the right portfolio for this business," he said.

Discussing challenges in the nickel market, particularly due to oversupply from Indonesia, Usmar stressed the need to improve efficiency and lower costs by better utilizing existing infrastructure. He sees the current market as an opportunity to drive cost discipline, drawing on his experience in the mining sector.

Looking ahead, key milestones for Vale Base Metals in 2025 include continued production growth in both copper and nickel, the ramp-up of the Onça Puma mine, and the advancement of the Voisey’s Bay Mine extension—a $2.94 billion project expected to ramp up through 2026.