Vale (NYSE:VALE) Chief Executive Gustavo Pimenta acknowledged Wednesday that the miner has lagged in the global copper push but said the company intends to catch up by advancing its own projects rather than pursuing acquisitions, Bloomberg News reported.
“Our opportunity lies more in developing our mining potential than in possibly making a transaction,” Pimenta said at a conference in São Paulo. “Our potential for product development is greater than that of our competitors.”
His remarks come amid a surge in mining industry dealmaking aimed at securing future copper supply, a key metal for electrification and renewable energy. Earlier this week, Anglo American (OTCQX:AAUKF) (OTCQX:NGLOY) agreed to buy Teck Resources (TECK) (TECK.B:CA) (TECK.A:CA) in a $50 billion-plus transaction, one of the largest mining deals in years. Pimenta said the merger underscores the strong long-term outlook for copper.
Vale (NYSE:VALE) plans to fast-track development in Brazil’s Amazon, where it has earmarked 70 billion reais ($13 billion) for iron ore and copper investments through 2030. The company currently produces about 350,000 tons of copper annually but aims to double output by 2035, with projects such as Alemao and Bacaba considered top priorities.
While Vale (VALE) trimmed its 2025 capital expenditure forecast to $5.4 billion to $5.7 billion from $5.9 billion, Pimenta stressed the cuts reflect efficiency gains in the copper and nickel division and do not mean projects are being abandoned, Bloomberg News reported.