Vale wants to explore the Amazon to meet the growing demand for artificial intelligence and global electrification. With a target of 700 tons by 2035, mining is moving forward.
The race for minerals essential for the energy transition and the advancement of artificial intelligence is driving billion-dollar investments in copper exploration around the world.
One of the giants in the sector, Vale Base Metals, a subsidiary of the Brazilian mining company Okay, keep an eye on this scenario and outlines an ambitious plan to expand its production, mainly in the state of Pará.
The goal is to increase copper extraction to 700 thousand tons by 2035, a significant leap compared to the previous plan, which predicted production of between 420 and 500 tons per year from 2030 onwards.
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To this end, Vale is investing in new mining projects in southeastern Pará, a strategic region for its operations in Brazil.
The high demand for copper and its relationship with technology
The growing need for copper is directly linked to the migration of fossil fuel-based sectors to renewable energy sources.
With the electrification of industries and the accelerated growth of artificial intelligence, demand for the metal is expected to skyrocket in the coming years.
According to Shaun Usmar, executive at Vale Base Metals, “a lot of copper will be needed to build the data centers that power the artificial intelligence revolution”.
He highlighted at an event held in Toronto that there are currently around 11.800 data centers in the world, with more than 5.400 in the United States.
It is predicted that by the end of the decade, this number will reach 10 in the US alone.
A Microsoft data center, for example, consumes around 27 tons of copper per megawatt-hour (MWh), which can reach 20 MWh of electricity.
The automotive sector also drives demand. Electric vehicles use 2,5 times more copper than combustion-powered cars, causing the sector's need for metal to increase to 2,5 million tonnes by 2030.
The electricity sector, essential for energy distribution, will also be impacted, with a projected growth in global copper demand from 28 million tons currently to 37 million by 2031.
Brazil and the untapped potential of copper
Despite being Vale's largest source of copper, Brazil still has a discreet role in the global market, especially when compared to Chile, the world leader in the production of the metal, with 5,3 million tons extracted annually.
In 2024, Brazil produced just over 300 tons, but its reserves are estimated at 10 million tons. If explored efficiently, the country could become one of the main global suppliers.
“At Vale Base Metals, we believe that Brazil has the potential to become a new major copper frontier,” said Usmar.
According to him, Brazilian deposits have a high copper content and are located in easily accessible regions, close to the mining company's existing infrastructure, including ports.
“We don’t have to deal with challenges like glaciers at 5.000 meters altitude, like in the Andes, or with infrastructure and water supply limitations”, completed.
Expanding projects and environmental challenges
Currently, Vale's largest copper mine is Salobo, located in Marabá (PA).
In 2024, the mine produced around 200 thousand tons of copper, accounting for more than half of the mining company's total production. The complex broke production records last year and is expected to grow even more in the coming years.
The expansion also includes the Paulo Afonso mine, designed to produce between 70 and 100 tons per year, although it is still in the study phase.
The Bacaba project, located near the Sossego mine, is the closest to entering into operation. In 2024, Sossego produced 65,4 thousand tons of copper in Canaã dos Carajás (PA).
Bacaba is ready for construction and is just waiting for the environmental license from the Pará government. It is expected to produce 60 thousand tons per year.
Another large-scale project is Cristalino, also located in Pará, with an expected production of between 70 and 90 tons per year for at least 22 years.
Together with other initiatives, these projects aim to reach the target of 700 thousand tons of copper per year established in Vale's acceleration plan.
However, mining expansion in the Amazon region raises environmental concerns.
Residents near the Sossego complex have complained for years about the impacts of mining, including dust and noise pollution, which resulted in the temporary suspension of activities by the state administration in 2024.
Despite these challenges, Vale Base Metals remains determined to expand its production and consolidate Brazil as one of the main players in the copper market.
“Many of these projects have been discussed for 20 years, and now we have the opportunity to unlock that potential,” stated Usmar.