Vale rules out mergers, focuses on growth, decarbonization

“Our main differentiator today is the development of our own ore bodies,” Mr. Pimenta told reporters after participating in Exposibram, a mining conference organized by the Brazilian Mining Institute (IBRAM) in Salvador, Bahia. “We have a mineral endowment, especially in Carajás, that allows us to grow organically through project development. That’s the company’s focus,” he said.

In September, Anglo American signed a merger agreement with Canada’s Teck Resources, which, if finalized, would form a copper mining powerhouse valued at roughly $50 billion. Anglo American, listed on the London Stock Exchange, will own 62.4% of the combined firm, while Teck shareholders will hold the rest.

When asked if Vale might consider acquiring another copper producer, Mr. Pimenta reiterated that the company is not pursuing mergers or acquisitions.

Even so, he did not rule out the possibility of doing business with Bahia Mineração (Bamin). “We are always monitoring all development projects in Brazil, especially iron ore,” he said. “We have other capital allocation priorities, but we’re always looking at opportunities.”

According to Reuters, shareholders of Bamin—part of the Eurasian Resources Group of Kazakhstan—are currently evaluating interest from three potential investors, said Eduardo Ledsham, the company’s CEO. The investors might acquire either a stake or full control of the iron ore producer, whose expansion plan would need about $6 billion in investments. Market expectations suggest that one investor will be chosen to proceed with negotiations, likely by early 2026.

Speaking at Exposibram, Mr. Pimenta said Vale expects to reclaim its position as the world’s largest iron ore producer this year, aiming to reach 360 million tonnes of annual output by the end of the decade. The company’s third-quarter production was already its highest since 2018. Vale lost the top spot to Anglo-Australian Rio Tinto shortly after the Brumadinho disaster in 2019, when a tailings dam at an iron mine collapsed, killing 270 people.

Mr. Pimenta reaffirmed Vale’s dedication to expanding its product lineup to meet customer needs and support global decarbonization efforts.

“We believe these cycles will remain constructive for the mining industry, especially for high-grade ores that are key to the energy transition,” he said.

According to the executive, Vale is well-positioned in the global effort to cut greenhouse gas emissions and highlighted the company’s green briquette, an innovation for lower-carbon steelmaking. “This decarbonization route favors high-quality ores,” he said. “We’re potential winners in the world’s decarbonization agenda.”

As Valor reported on October 1, when Mr. Pimenta marked one year as CEO, the company has been working to demonstrate to investors improvements in dam management and safety practices.

“Now that we no longer have any level-3 dams, we can attract more investors,” Mr. Pimenta said Tuesday. “The mining of the future means ending the use of tailings dams.”