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The Brazilian mining giant Vale SA VALE announced its commitment to significantly boost copper production under its new CEO, Gustavo Pimenta.

Pimenta, a former CFO who became CEO after a turbulent succession process, spoke to the media for the first time in his new role. He acknowledged that Vale has "fallen behind on copper " compared to industry peers but plans to close that gap, Bloomberg reported.

This year, Vale expects to produce between 320,000 and 355,000 metric tons of copper — well below the output of its size-related industry peers. Pimenta plans to raise the output of its assets in Brazil, Canada and Indonesia to around 500,000 tons before considering other options.

In addition to growing copper production, Vale focuses on investments in strategic minerals essential for the global energy transition. The firm has been under pressure from the Brazilian government, which pleaded for increased domestic investments.

In collaboration with Brazil's development bank, BNDES, Vale will invest around $184 million in junior and mid-sized companies working on minerals like nickel and cobalt — crucial for electric vehicles and renewable energy technologies.

Despite these ambitions, Vale faces several challenges. As the largest iron ore producer globally, the firm has experienced a slowdown in China's economy, a critical market for that commodity. Additionally, the aftermath of the catastrophic 2015 dam collapse still requires substantial financial and legal settlements, creating a drain on the firm's resources.

However, Vale's rapidly evolving copper market peers are not sitting idle. Barrick has been ramping production and investing $2 billion in expansion at its Lumwana mine in Zambia, which is set to double copper output to 240,000 tons per year by 2028. Barrick is also advancing its Reko Diq project in Pakistan, further boosting its copper and gold production.

Meanwhile, Australian miner BHP has identified copper as a key growth pillar, anticipating a 70% increase in global demand by 2050. BHP is expanding its copper portfolio, focusing on existing operations and potential new projects like Oak Dam in Australia, addressing aging mines and declining ore grades.

With copper touted as a cornerstone metal for the green tech transition, Vale's new management has a lot of ground to cover before catching up to its competitors which are committed to multi-billion-dollar projects.

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