According to Mining.com, Vale’s Base Metals business is expanding annual copper production at Salobo, its largest copper mine in Brazil, by 30,000 tonnes. The expansion has seen both a reduction in capital costs and an acceleration of the commissioning schedule by approximately one year.
The Coarse Particle Flotation (CPF) expansion is expected to increase Salobo’s annual processing capacity by 6 million tonnes to 42 million tonnes, while generating approximately 15,000 ounces of gold as a by-product annually.
Vale has reduced its estimated capital investment from the previous $225 million–$275 million range to $215 million. Meanwhile, Wheaton Precious Metals will contribute $40 million under an amended precious metals stream agreement. The expansion is expected to begin production in the first half of 2028.
“The project will allow us to produce more copper more efficiently, make full use of existing infrastructure and improve environmental performance,” said Shaun Usmar, head of Vale’s Base Metals business, in a press release.
He also highlighted the company’s ability to unlock the significant value and growth potential of world-class assets through execution, innovation and disciplined capital allocation.
The investment represents another step in Vale’s strategy to increase its copper production to approximately 700,000 tonnes per year by 2035 through a series of brownfield projects in Brazil’s Carajás region.
Salobo, which achieved record production in both 2024 and 2025, is the second project in this strategy. Development progress at the mine has accelerated in recent weeks. Vale recently brought forward the commissioning date for the nearby Bacaba project to the third quarter of 2027, nearly six months earlier than previously planned.
Improving Recovery Rates
CPF uses an additional scavenging stage designed to remove waste rock as early as possible in the processing circuit. This reduces the need for grinding while improving mineral recovery rates and overall plant throughput.
Vale said the technology will also reduce average energy and water consumption compared with conventional mineral processing methods.
The company obtained construction approval for the project ahead of schedule from Brazil’s environmental regulator, allowing construction to begin earlier than planned.
Vale estimates that the project will generate an internal rate of return (IRR) of more than 50%. Following Wheaton’s contribution, Vale’s net investment is expected to fall to approximately $175 million.
The accelerated schedule comes at a time when Vale’s Base Metals business has faced challenges that contrast with the recent improvement in production. After years of relatively stable copper output, the company reached its highest copper production since 2018 in 2025, largely driven by record output at Salobo and improved operational stability at its other Brazilian mines.
The expansion comes as mining companies face growing difficulties in bringing new mines into production due to rising costs, permitting delays and increasingly complex ore deposits. Rather than relying on greenfield development, Vale is focusing on expanding existing mines around Carajás, allowing it to increase production more quickly and with lower risk.
In March, Vale CEO Gustavo Pimenta said the company already controls the mineral resources and infrastructure required to expand its existing mines and therefore does not need to undertake expensive new mine developments.
Wheaton Precious Metals
Under the precious metals stream agreement for Salobo, the new financing arrangement replaces potential future milestone payments.
Wheaton will make two $20 million payments based on project milestones. In return, the company will receive exposure to the additional gold by-products generated by the expansion.
“Over the years, Salobo has become a cornerstone asset for Wheaton, and we are very pleased to support the advancement of the CPF project,” said Haytham Hodaly, President and CEO of Wheaton Precious Metals.
“This reflects our commitment to investing in high-quality partnerships that can create long-term value for both parties.”
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