(Kitco News) - Vale Base Metals, a private entity spun out from Brazilian mining giant Vale S.A., is aggressively pursuing a strategy 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 outlined the company's ambitions in the battery and critical minerals space, emphasizing its significant copper holdings in Brazil's Carajás region.
Usmar described Vale Base Metals as "one of the best-kept secrets in the battery metals, the critical mineral space," highlighting its polymetallic nickel business and substantial copper endowment, which he claims is the largest in Brazil with over 30 years of reserves and resources.
The decision by Vale to spin out the base metals unit after nearly two decades was driven by the recognition of the distinct value potential in nickel and copper, which often took a backseat to Vale's dominant iron ore business.
He believes the separation allows for greater focus and the opportunity to unlock significant value and potentially achieve a higher market multiple.
The company's strategy to boost copper output hinges on optimizing existing operations and infrastructure. Usmar pointed to recent successes, stating, "Salobo has just hit its best output in its history."
He emphasized leveraging the "organic pipeline" of projects, some of which have been in development for years and highlighted the Novo Carajas initiative aimed at capitalizing on regional synergies and partnerships.
While an IPO isn't imminent, Usmar indicated that going public is a possibility as the company optimizes its portfolio and demonstrates its potential. "The first thing we have to do, and which we're active on...is really create the conditions so that we can then actually be faced with what's the right portfolio for this business," he said.
Addressing the challenges in the nickel market due to oversupply, particularly from Indonesia, Usmar stated that the focus is on "improving the utilization availability of our existing infrastructure" and driving down the cost curve.
He sees the current environment as an opportunity to instill cost discipline, drawing on his past experience in the mining sector.
Looking ahead, Usmar highlighted key milestones for the year, including continued production growth in both copper and nickel, the ramp-up of the Onça Puma mine, and the progression of the Voisey's Bay Mine extension, a $2.94 billion project expected to ramp up through 2026.
Special thanks to our sponsor, First Majestic, for making this coverage possible. Visit https://www.firstmajestic.com/ to learn more.