Vale Base Advances Salobo Copper Project
Vale Base, a leading global supplier of critical minerals, has announced its decision to move forward with the Coarse Particle Flotation (CPF) project at its Salobo Copper Complex in Brazil. The expansion is expected to significantly increase processing capacity and copper production while delivering strong economic returns.
The company now expects the project to begin operations in the first half of 2028, around a year ahead of its original schedule. According to Vale Base, the accelerated timeline reflects improvements in its construction strategy and a broader transformation of its project execution model, designed to increase flexibility, speed and efficiency while maximizing returns across its portfolio.
The CPF project is expected to increase Salobo's annual ore-processing capacity by 6 million tonnes, taking total capacity to approximately 42 million tonnes per year. Copper production is forecast to rise by up to 30,000 tonnes of contained copper annually, alongside approximately 15,000 ounces of additional gold produced as a byproduct. The expansion follows record production levels at Salobo in 2024 and 2025.
"CPF demonstrates VBM's ability to generate substantial value from world-class assets through disciplined execution, innovation and effective capital allocation," said Shaun Usmar, CEO of VBM. "Salobo is already among the world's leading copper operations, and the project will allow us to increase copper production more efficiently by making greater use of existing infrastructure while also improving environmental performance."
Usmar said the accelerated development was particularly significant given the industry's challenges in bringing new copper supply to market. He noted that VBM recently announced the early completion of its Bacaba copper project by six to nine months and has now brought forward Salobo's CPF project by approximately one year. He said the progress highlights the strength of VBM's copper pipeline and its ability to reduce project risks while delivering capital-efficient, high-return developments.
CPF Project Designed to Address Processing Bottlenecks
The CPF project is a brownfield expansion that will make use of Salobo's established infrastructure and high-quality orebody, helping to limit construction and execution risks. Salobo is Brazil's largest copper operation and is considered a long-life cornerstone asset for VBM.
The new flotation circuit will enable waste rock to be separated earlier in the processing chain, reducing the amount of material requiring grinding. This is expected to ease existing grinding constraints, improve metallurgical recoveries and allow the plant to process greater volumes of ore.
The technology is also expected to lower the operation's environmental footprint by reducing average energy and water consumption compared with conventional processing approaches.
As part of Salobo's broader strategic plan, total mine movement is expected to increase by around 7%. This growth will be supported by several operational initiatives, including the deployment of new autonomous haulage equipment.
VBM also secured the construction license for the CPF project from Brazil's Institute of Environment and Renewable Natural Resources (IBAMA) ahead of schedule, allowing implementation to commence earlier than originally planned.
Wheaton to Provide $40 Million in Project Funding
Wheaton Precious Metals has agreed to contribute $40 million toward the project's capital requirements. The funding will be provided in two $20 million installments linked to specific project milestones.
The payments will replace future milestone payments under the existing Salobo streaming agreement. Under that arrangement, Wheaton could have been required to make annual payments of up to $8 million to VBM for as many as 10 years if a high-grade mine plan had been introduced.
VBM has also streamlined the CPF project's scope, reducing its estimated capital requirement to approximately $215 million, compared with the earlier estimate of $225 million to $275 million. After accounting for Wheaton's contribution, VBM's net capital expenditure is expected to be approximately $175 million.
The project's capital intensity is estimated at between $5,000 and $6,000 per copper-equivalent tonne, significantly below the industry average.
Usmar described the arrangement as mutually beneficial, noting that Wheaton's $40 million contribution further strengthens the project's already attractive economics while allowing Wheaton to benefit from increased gold byproduct production.
Haytham Hodaly, President and CEO of Wheaton Precious Metals, said the company was pleased to support the CPF expansion, describing Salobo as a cornerstone asset and emphasizing Wheaton's commitment to partnering with high-quality operators on projects capable of creating long-term value.
Key Salobo CPF Project Estimates
The company now expects the project to begin operations in the first half of 2028, around a year ahead of its original schedule. According to Vale Base, the accelerated timeline reflects improvements in its construction strategy and a broader transformation of its project execution model, designed to increase flexibility, speed and efficiency while maximizing returns across its portfolio.
The CPF project is expected to increase Salobo's annual ore-processing capacity by 6 million tonnes, taking total capacity to approximately 42 million tonnes per year. Copper production is forecast to rise by up to 30,000 tonnes of contained copper annually, alongside approximately 15,000 ounces of additional gold produced as a byproduct. The expansion follows record production levels at Salobo in 2024 and 2025.
"CPF demonstrates VBM's ability to generate substantial value from world-class assets through disciplined execution, innovation and effective capital allocation," said Shaun Usmar, CEO of VBM. "Salobo is already among the world's leading copper operations, and the project will allow us to increase copper production more efficiently by making greater use of existing infrastructure while also improving environmental performance."
Usmar said the accelerated development was particularly significant given the industry's challenges in bringing new copper supply to market. He noted that VBM recently announced the early completion of its Bacaba copper project by six to nine months and has now brought forward Salobo's CPF project by approximately one year. He said the progress highlights the strength of VBM's copper pipeline and its ability to reduce project risks while delivering capital-efficient, high-return developments.
CPF Project Designed to Address Processing Bottlenecks
The CPF project is a brownfield expansion that will make use of Salobo's established infrastructure and high-quality orebody, helping to limit construction and execution risks. Salobo is Brazil's largest copper operation and is considered a long-life cornerstone asset for VBM.
The new flotation circuit will enable waste rock to be separated earlier in the processing chain, reducing the amount of material requiring grinding. This is expected to ease existing grinding constraints, improve metallurgical recoveries and allow the plant to process greater volumes of ore.
The technology is also expected to lower the operation's environmental footprint by reducing average energy and water consumption compared with conventional processing approaches.
As part of Salobo's broader strategic plan, total mine movement is expected to increase by around 7%. This growth will be supported by several operational initiatives, including the deployment of new autonomous haulage equipment.
VBM also secured the construction license for the CPF project from Brazil's Institute of Environment and Renewable Natural Resources (IBAMA) ahead of schedule, allowing implementation to commence earlier than originally planned.
Wheaton to Provide $40 Million in Project Funding
Wheaton Precious Metals has agreed to contribute $40 million toward the project's capital requirements. The funding will be provided in two $20 million installments linked to specific project milestones.
The payments will replace future milestone payments under the existing Salobo streaming agreement. Under that arrangement, Wheaton could have been required to make annual payments of up to $8 million to VBM for as many as 10 years if a high-grade mine plan had been introduced.
VBM has also streamlined the CPF project's scope, reducing its estimated capital requirement to approximately $215 million, compared with the earlier estimate of $225 million to $275 million. After accounting for Wheaton's contribution, VBM's net capital expenditure is expected to be approximately $175 million.
The project's capital intensity is estimated at between $5,000 and $6,000 per copper-equivalent tonne, significantly below the industry average.
Usmar described the arrangement as mutually beneficial, noting that Wheaton's $40 million contribution further strengthens the project's already attractive economics while allowing Wheaton to benefit from increased gold byproduct production.
Haytham Hodaly, President and CEO of Wheaton Precious Metals, said the company was pleased to support the CPF expansion, describing Salobo as a cornerstone asset and emphasizing Wheaton's commitment to partnering with high-quality operators on projects capable of creating long-term value.
Key Salobo CPF Project Estimates
| Metric | Estimate |
|---|---|
| Additional processing capacity | 6 million tonnes per year |
| Incremental copper production | Up to approximately 30,000 tonnes per year |
| Incremental gold production | Approximately 15,000 ounces per year |
| VBM capital expenditure after Wheaton funding | Approximately $175 million¹ |
| Internal rate of return | More than 50% |
| First commercial production | First half of 2028 |
Technology, Research and Collaboration
VBM began researching CPF technology for Salobo more than two years ago. The company has conducted extensive laboratory testing at its Sheridan Park Research Facility in Canada while working with industry specialists and technical partners.
Field trials have helped validate the project's design assumptions and are continuing at VBM's pilot facility in Brazil's Carajás region. The testing is also supporting operational training and generating additional insights ahead of commercial implementation.
VBM is evaluating opportunities to deploy CPF technology at other copper projects in Carajás and elsewhere across its portfolio. The company is also investigating potential applications for the technology in polymetallic ore bodies.
The decision to proceed with the project reflects VBM's broader emphasis on technology, collaboration and innovation as tools for reducing development risks and drawing on the company's technical expertise to generate additional value.
¹ Assumes a BRL/USD exchange rate of 5.20.
Strong Copper Growth Pipeline
The Salobo CPF expansion forms part of VBM's broader copper growth pipeline in Brazil. The company has more than 53 million tonnes of contained copper across its mineral reserves and resources, including inferred resources.
VBM's growth strategy targets annual copper production of approximately 700,000 tonnes by 2035. Much of this growth is expected to come from its Brazilian resource base and projects in the Carajás region, where the company already has a substantial operating presence and established infrastructure.
The concentration of VBM's operations and development projects near existing mining complexes, processing plants, logistics networks and power infrastructure is expected to support a more capital-efficient approach to expanding copper production.
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