Vale Base Metals Announces Advancements in Copper Production at Salobo with Coarse Particle Flotation

Vale Base Metals Enhances Copper Production at Salobo

Vale Base Metals has made a significant announcement regarding its operations at the Salobo copper complex located in Brazil. The company plans to implement a Coarse Particle Flotation (CPF) process that promises to boost copper production and processing capacity. This innovation is expected to increase the annual copper output by approximately 30,000 tons, while the ore processing capacity at Salobo will rise by 6 million tons per year, reaching a total capacity of 42 million tons.

The anticipated launch of this project has been moved forward to the first half of 2028, indicating a more efficient project execution strategy by Vale Base Metals. This proactive approach highlights the company's commitment to generating strong returns through its extensive mineral resources and project portfolio. The CPF project aims not only to enhance productivity but also to improve the environmental performance of mining operations, utilizing existing infrastructure for greater effectiveness.

In addition to increasing output, the new flotation project is expected to yield about 15,000 ounces of gold as a by-product, further enriching the Salobo production profile. Shaun Usmar, the CEO of Vale Base Metals, emphasized that this development underscores the company’s ability to create significant value through innovation, optimal capital allocation, and efficient execution.

This strategic initiative comes at a time when the copper industry faces challenges in bringing new supply sources online. VBM is going against the trend by accelerating the launch of copper development projects. Earlier announcements included the expedited commissioning of their Bacaba project, which will now be operational six to nine months ahead of schedule. The rapid development of these projects reflects VBM's solid portfolio and its capability to manage risks actively.

The CPF project will address existing bottlenecks in grinding processes at Salobo. By integrating a new flotation circuit that effectively separates waste earlier in the treatment process, VBM aims to boost metallurgical recovery rates and achieve higher throughput. This environmentally-friendly method will also allow for reduced energy and water consumption compared to traditional approaches.

The company has already secured construction permits from IBAMA, the Brazilian Institute of Environment and Renewable Natural Resources, ahead of time, enabling an earlier project rollout. In a collaborative financial move, Wheaton Precious Metals has committed $40 million toward this project to support investment costs. This funding will be delivered in two installments linked to key milestones in the CPF project development. The reduction in capital expenditure has also been revised down to approximately $215 million, courtesy of a streamlined project scope. This enhanced cost efficiency positions VBM favorably within the competitive landscape of the copper industry.

Usmar notes the strategic advantages presented by the CPF initiative, which will translate to mutually beneficial outcomes for both Wheaton and VBM. As Salobo has been a flagship asset for Wheaton, the successful implementation of CPF is seen as a reflection of the long-standing partnership and shared belief in long-term value creation.

Looking ahead, VBM is focused on expanding its copper production capacity, with a goal to reach approximately 700,000 tons annually by 2035. By leveraging high-quality mineral resources and existing operational infrastructure, the company is poised to enhance its market position significantly.

The CPF project is part of a broader strategy to drive growth and innovation across VBM’s resource portfolio, which includes over 53 million tons of contained copper reserves and resources. This forward-thinking approach exemplifies the culture at Vale Base Metals, which prioritizes technological advancements and collaborative strategies to reduce risk and maximize operational efficiencies.

For more information, stakeholders can reach Vale Base Metals via their Investor Relations team or the media contact details provided in the company’s news release.