Vale (VALE) said Tuesday it is lowering its iron ore production guidance for FY 2026, targeting production of 335 million-345 million tons, slightly below its previous forecast of 340 million-360 million tons but mostly higher than its expected FY 2025 output of 335 million tons, as global demand slows and new supply from Africa comes online.
Vale (VALE) estimated FY 2026 capital spending in the $5.4 billion-$5.7 billion range, well below its previous guidance of $6.5 billion; the number is closely watched by investors because it helps determine how much will be available for shareholders payouts.
The company also guided for FY 2026 copper production of 350,000-380,000 tons, compared to 370,000 expected this year, before surging to an estimated 700,000 tons by 2035, while nickel output is estimated at 175,000-200,000 tons in 2026, compared to 175,000 tons expected this year.
Separately, Vale (VALE) and Glencore (OTCPK:GLCNF) (OTCPK:GLNCY) said Tuesday they are considering jointly developing a $1.6 billion-$2 billion copper project at their neighboring properties in Canada’s Sudbury basin aimed at producing 880,000 metric tons over 21 years.
The two companies have been weighing a Canadian partnership for 20 years, with the latest announcement coinciding with near record copper prices.