By Brazil Stock Guide – Vale (B3: VALE3; NYSE: VALE) delivered one of its strongest operational performances in years in 2025, exceeding production guidance across all major commodities. Iron ore output reached 336 million metric tons, its highest level since 2018, while copper production climbed to 382 thousand tons, also a post-2018 record. Nickel output totaled 177 thousand tons, the strongest result since 2022, supported by project ramp-ups and steadier asset performance across Brazil and Canada.
Iron ore production in the fourth quarter rose 6% year on year to 90.4 million tons, driven by strong performance at Brucutu and the continued ramp-up of the Capanema and VGR1 projects. Full-year iron ore volumes came in above the top end of the company’s original guidance range, allowing Vale to reaffirm a 2026 production target of 335–345 million tons. Pellet output, however, declined 15% in 2025, as the miner deliberately adjusted pellet production and redirected feed toward iron ore fines sales amid weaker global pellet premiums.
Copper stood out as the operational highlight. Fourth-quarter output increased 6% year on year to 108.1 thousand tons, marking the strongest quarterly result since 2018. The performance was driven by record production at Salobo and stable operations at Sossego, alongside improved availability at Canadian assets, including Sudbury and Voisey’s Bay. Nickel production rose more modestly in the quarter, up 2% year on year, but benefited from the full commissioning of Onça Puma’s second furnace and the ramp-up of underground mines in Canada.
Commercially, higher shipment volumes were partly offset by weaker pricing across iron ore products. Average realized iron ore fines prices fell 4% year on year in 2025, while pellet prices declined more than 13%, compressing the all-in premium to $1.5 per ton, down from $2.1 per ton a year earlier. Copper moved in the opposite direction, with average realized prices rising nearly 11%, supported by higher LME benchmarks and tighter treatment and refining charges.
The operational data reinforce Vale’s strategic focus on flexibility and product optimization rather than pure volume growth. With S11D delivering a record 86 million tons in 2025 and Capanema expected to reach full capacity in the second quarter of 2026, the company enters the next cycle with a stronger production base—while remaining exposed to global steel demand, particularly in China, and to price volatility across bulk and base metals.
Alongside the operational disclosure, Vale said Brazilian authorities have filed new court actions seeking precautionary measures, including asset freezes, related to tailings overflows recorded in January 2026 at the company’s Fábrica and Viga operational units in Minas Gerais. The requests include blocking orders totaling more than R$2 billion, filed by the Federal Public Prosecutor’s Office and by the state and local prosecutors of Minas Gerais.
Vale said the incidents are unrelated to any of its tailings dams, which remain under unchanged safety conditions and continuous monitoring. The company said it is cooperating with authorities, has begun sediment removal, and is preparing recovery plans for affected areas, adding that the proceedings do not alter its assessment of the integrity or operational safety of its dam infrastructure.
Leave a Reply