Vale targets mid-2023 for base metals reorganisation

Vale targets mid-2023 for base metals reorganisation

Vale confirms that it will separate its base metals operations into a distinct entity from its main iron ore business by the end of H1 2023. 

Blue View

Brazilian mining giant Vale used its recent investor day event to confirm that it will split its base metals (nickel and copper) business so that it is valued separately from its iron ore activities. Project Blue has been tracking developments relating to the transaction, addressing the first speculation in early October.  

Vale will now place its nickel and copper business within a new legal structure named ‘Vale Base Metals,’ which will contain its nickel assets in Canada and Indonesia as well as Brazil’s Onça Puma ferronickel operation and Salobo copper project. Vale intends to own a 90% controlling stake in the unit with the remaining 10% divested to a selected partner. The company revealed that it is in advanced discussions with potential partners and that any deal could be signed during H1 2023. 

During Vale Day, the company also championed its plans to boost nickel and copper output over the coming years. Nickel production is expected to reach 230-245ktpy Ni in the medium term, which will rise to over 300ktpy by 2030. Copper output is also set to triple from current levels to approximately 900ktpy Cu. 

Vale has long considered a move to reorganise its base metals unit within its overall business. The move represents further restructuring within the company after the sale of its manganese and iron ore mines in central Brazil earlier this year. It now hopes to take advantage of rising demand for critical metals within its base metals unit as the push to decarbonise economies intensifies. Following the signing of contracts with major OEMs this year, Vale has decided now is the time to be bold. 

  • 14 Dec 2022
  • Brazil
  • Canada
  • Indonesia
  • Vale
  • Manganese
  • Nickel
  • Copper

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