Brazilian mining company Vale has revealed its plans to invest approximately $3.3bn to enhance its mining operations in Brazil and Canada to increase the copper and nickel production capacity by 2028.
In the first phase of execution, spanning from this year to 2026, Vale will invest $650m to ensure operational stability and achieve production potential. It will also invest $150m in the Sudbury and Salobo mines.
The Brazilian mining company will also spend $650m on exploration and project development.
At the Sudbury operations in Canada, Vale aims to fill the mill with its own sourced metals with higher margins. The Sudbury operations involve five mines, a mill, a smelter and a refinery,
It is said to be one of the largest integrated mining complexes in the world and produces nickel, copper, cobalt, platinum group metals, gold and silver.
Vale also intends to enhance physical performance at the Salobo mine in Brazil to lower costs and improve margins. In addition, the company will ramp up the Salobo 3 expansion project.
During the first three years, Vale expects to achieve an additional value creation of around $2bn.
Vale plans to expand its production capacity to nearly 400 kilotonnes (kt) of copper and 200kt of nickel by 2026. By 2028, the company’s copper production is expected to reach approximately 500kt, while nickel production is slated to be 250kt.
Recently, the Brazilian mining company completed the sale of its 10% stake in Vale Base Metals (VBM) to Manara Minerals for $2.5bn, following approvals from relevant authorities. Manara is a joint venture between Ma’aden and Saudi Arabia’s Public Investment Fund.
