Brazil's Vale ups 2023 capex to US$6bn

Brazilian mining giant Vale plans a capex increase to US$6bn next year from US$5.5bn this year, plus higher iron ore and copper production. 

Annual capex between 2024 and 2027 will fluctuate between US$6bn and US$6.5bn, according to an investors presentation.

"Companies like Vale, which have strong cash generation, tend to finance their investments with corporate credit models and not with project finance solutions," Andréia Bentim, project finance director at Bradesco BBI, Banco Bradesco's investment banking arm, told BNamericas. 

Meanwhile, Vale expects that exploration expenses to reach US$180mn in 2023, compared with US$170mn in 2022. In 2024, 2025 and 2026, exploration expenses will reach US$250mn, US$300mn and US$350mn.

PRODUCTION 

CEO Eduardo Bartolomeo said during the presentation that Vale will focus on metals key for the energy transition, such as copper and nickel.

Iron ore production is expected to reach up to 320Mt in 2023, versus 310Mt in 2022, and 340Mt-360Mt in 2026. 

2023 copper guidance is 335,000t-370,000t, compared with 260,000t this year, while 2026 production should reach 390,000t-420,000t. 

Nickel production is set to reach 180,000t in 2022 and expected to reach 160,000t-175,000t in 2023. 2026 production is expected to total 230,000t-245,000t. 

According to Bartolomeo, Vale's exploration expenses have been largely directed toward boosting nickel production.