Vale Plans to Triple Copper Production as New CEO Gustavo Pimenta Takes the Helm

Vale is considering opportunities to significantly increase its copper output, potentially tripling production, as it seeks to catch up with industry competitors, according to the company's newly appointed president, Gustavo Pimenta. In a statement made on Wednesday, Pimenta highlighted that Vale currently produces 350,000 tonnes of copper annually, while the largest global producers generate around 1 million tonnes per year.

Pimenta emphasized the company’s strategic focus on expanding its operations in copper and nickel, both of which are part of Vale’s existing portfolio. "We have a competitive advantage with these minerals. We understand them well and can produce them with a very competitive cost curve for the industry," he explained.

Despite speculation, Pimenta clarified that Vale is not currently considering an initial public offering (IPO) for its subsidiary, Vale Base Metals. Instead, the company’s immediate priority is to stabilize and maximize the potential of its existing operations before pursuing any new financial strategies or market access.

Vale aims to reach 500,000 tonnes of copper production annually in the coming years. Only then, Pimenta said, would the company evaluate the need for additional financing or whether to access the capital markets to support further growth in the base metals sector.