Vale Lowers 2025 Investment Budget

According to a report by BNAmericas, Brazilian mining giant Vale has lowered its 2025 investment budget.

Vale stated, "After evaluating project benefits, the 2025 investment budget has been reduced from the previous $6.5 billion to $5.9 billion."

In 2024, Vale's investment will be $6 billion, higher than the previous $5.92 billion.

The reduction in investment will affect the base metals segment, including copper and nickel. Currently, Vale expects investment in this sector to be $2 billion, down from the previous $2.5-3 billion.

Key business investments will be allocated $3.9 billion, while iron ore investments will remain unchanged at $3.5-4 billion.

The main iron ore expansion projects under construction include: the Serra Sul mine with a designed capacity of 20 million mt/year, expected to start production in H2 2026; the Capanema project with a capacity of 18 million mt/year, which began production in H1 this year; the Tubarão Pellet Plant 2 with a capacity of 6 million mt/year, which started production this year; and the S11D impact crushing project with an annual capacity of 50 million mt, set to begin production in H2 this year.

In the base metals segment, Vale will install a second furnace at the Onça Puma nickel mine, increasing capacity to 15,000 mt/year, with production expected to start in H2 this year.

In 2024, Vale's revenue is projected to be $38 billion, a 9% decline, while net profit will decrease from $7.98 billion to $6.16 billion. This is one of the reasons for the reduced investment.