Vale Sees Positive Signs in Iron Ore Prices

The CEO of the mining company Vale, Gustavo Pimenta, stated that the prices of iron ore next year will largely depend on the recovery of the Chinese economy, and he noted that there are positive signs regarding this recovery.

During his first press conference since taking over the CEO role in October, Pimenta told reporters that the breakeven price for most of the iron ore industry is $90 per ton, and prices have recently risen to around $106 per ton.

He mentioned that Vale is looking at opportunities to expand its iron ore production in Brazil and that it might have a strategic investor for its base metals unit. Vale also announced that after this year's production of approximately 328 million tons, it expects to produce between 325 million and 335 million tons of iron ore by 2025.

Reiterating its plans to continue increasing iron ore production in the coming years, the Brazilian company predicts reaching between 340 million and 360 million tons in 2026 and about 360 million tons by 2030.

Vale noted that it has begun to ramp up the Capanema project at the Mariana complex, aiming to add approximately 15 million tons of iron ore, calling this "a significant milestone" on the path to achieving its 2026 iron ore production target.