Saudi-backed Vale plans to increase copper output

Alamy/Industryview

• Copper vital to energy transition
• PIF and Ma’aden back Vale
• Demand for the metal surging

Brazilian miner Vale, which is backed by Saudi Arabia’s Public Investment Fund (PIF), aims to increase copper production after conceding that it had lost ground to competitors in its output of the key metal.

Vale is a top global iron ore producer but also operates base metal projects including copper and nickel. 

In his first public remarks since starting his new role as CEO on October 2, Gustavo Pimenta said: “We have fallen behind on copper.”

The firm is on track to produce between 320,000 and 355,000 metric tons of copper this year — around one-third of market competitors, according to Pimenta.

In April 2024, Manara Minerals, a joint venture between Saudi mining firm Ma’aden and the PIF, acquired a 10 percent stake in Vale Base Metals, for $2.5 billion. 

At the time, Manara Minerals said: “Vale will play a key role in helping it expand the production of copper and nickel across its asset portfolio, which are critical to the development of new technologies that will benefit the global energy transition.”

• Saudi Arabia open to joint mining ventures with China
• Alba and Maaden plan global aluminium powerhouse
• Saudi Arabia targets stake in Pakistan’s $6.5bn mining project

Demand for copper in 2050 is projected to be twice the supply in 2020, while demand for nickel is projected to triple.

Vision 2030 identifies the mining sector as essential to achieving Riyadh’s target of net-zero carbon emissions by 2060 and as a key future pillar of the country’s economy.

Saudi Arabia has been pushing hard in recent years to expand its presence in the global mining industry. Manara Minerals plans to acquire a 15 percent stake in the Reko Diq mining project — home to one of the world’s largest gold and copper reserves — in Pakistan, according to a local media report. The project’s estimated cost is between $6 billion and $6.5 billion.

In August 2024, Saudi mineral resources minister Bandar Alkhorayef visited Chile, the world’s second-largest lithium producer, to build cooperation in production of the metal.

And in early September, the minister met with senior executives of General Lithium Corporation, a Chinese lithium products manufacturer, to discuss potential partnerships.

The British government is also deepening its collaboration with Saudi Arabia to diversify sources of critical minerals. UK officials said the new partnership could provide Saudi investment in Britain’s manufacturing and mining finance sectors, as well as new opportunities for its mining firms to do business in the kingdom.

Inside the country, the drive to exploit Saudi Arabia’s estimated $1.3 trillion of untapped mineral wealth has been picking up pace.

The Saudi industry and investment ministries have launched a mineral exploration incentives package, valued at $182 million. Exploration permits rose to 259 in 2023 from 58 in 2021 and building material quarry licences rose threefold to 538.