Vale gets initial license for Bacaba copper project

Vale (NYSE: VALE) says authorities have granted a preliminary environmental licence for its Bacaba copper project in Brazil.

The miner expects to invest about $290 million (C$393 million) during the project’s implementation stage in Pará state, it said on Monday.

The Bacaba project is designed to extend the operational life of the nearby Sossego mining complex, contributing an average of approximately 50,000 tonnes of copper per year over eight years of operation. Production is scheduled to begin in the first half of 2028.

“This is the first in a series of copper projects that Vale intends to develop in the Carajás mineral province, as part of a strategic plan to double its copper production capacity over the next decade,” the company said in a statement.

Vale shares closed 3.8% higher on Monday in New York at $9.82 apiece as wider markets gained on the easing of Mid East conflict. The company has a market capitalization of $44.3 billion. 

In addition to copper development in Brazil, Vale owns 90% of Vale Base Metals, which groups together its nickel and copper assets. Manara Minerals, a joint venture between Saudi Arabian miner Ma’aden and Saudi Arabia’s Public Investment Fund, acquired the remaining 10% stake last year.

The company is expected to make a decision this year on whether to sell its assets in Manitoba. Vale began a review in January. The assets include two operating underground nickel mines, an adjacent mill and exploration opportunities on the 135-km long Thompson Nickel Belt.