Vale Base Metals, a subsidiary of Brazilian company Vale, and Glencore Canada, a unit of Swiss commodities major Glencore, have entered into an agreement to jointly assess a potential brownfield copper development project at their adjacent properties in Sudbury Basin, Ontario.
This partnership aims to explore the synergies of mining both companies’ underground deposits using the shaft and infrastructure at Glencore’s Nickel Rim South Mine.
The agreement establishes a framework for Vale Base Metals and Swiss commodities major Glencore to assess the feasibility of deepening Glencore’s existing mine shaft and constructing new drifts to access nearby copper deposits.
Upon completion of the initial evaluation, both companies intend to form a joint venture (JV) as equal partners in the project.
The proposed project is set to produce an estimated 880,000 tonnes (t) of copper over 21 years, with capital expenditure projected at between $1.6bn (C$2.23bn) and $2bn.
In addition to copper, the polymetallic geology of the Sudbury Basin will enable production of nickel, cobalt, gold, platinum group metals and other critical minerals, stated Vale.
Detailed engineering, permitting and consultation work for the Sudbury Basin copper project is scheduled to begin in 2026.
A final investment decision is anticipated in the first half of 2027.
The agreement could provide some relief to Glencore shareholders, who have become increasingly dissatisfied with the company’s lagging share price, reported Bloomberg.
Glencore’s copper output is projected to decline for a fourth consecutive year. Between January and September, Glencore’s own-sourced copper production decreased by 17% to 583,500t compared to the previous year, while its cobalt output increased by 2,000t to reach 28,500t.
It also revised its 2025 copper production forecast to a range of 850,000–875,000t, narrowing it from the previous estimate of 850,000–890,000t, citing lower ore grades at certain mines.
In September, Bloomberg reported Glencore was in talks to sell a majority stake in the Kamoto Copper Company in the Democratic Republic of Congo.
Vale, meanwhile, has announced plans to double its base metals production capacity to around 700,000 tonnes per annum (tpa) by 2035.
In September, Vale opened the Capanema mine in Ouro Preto, Minas Gerais, Brazil, with plans to invest 67bn reais ($12.2bn) through 2030.
“Vale, Glencore to jointly assess copper development project in Sadbury Basin, Ontario” was originally created and published by Mining Technology, a GlobalData owned brand.
