Inside Vale: CEO Gustavo Pimenta Hails Strong Performance
Vale has delivered a strong operational performance in 2025, exceeding all production guidance. However, the company faced a significant net loss in Q4 2025 and lower annual profit due to a large non-cash impairment charge on nickel assets in Canada and deferred tax write-offs.
For the 2025 full-year, Vale achieved its highest iron ore and copper production levels since 2018 - 336 Mt iron ore and 382 kt copper - and strong nickel output at 177 kt. This was supported by projects like Capenema and Oçna Ouma.
In terms of operational efficiency, iron ore C1 cash cost fell for the second consecutive year to US$21.3/t, demonstrating improved cost competitiveness.
Net income for 2025 fell up 67% to US$1.98bn, primarily due to a US$4.599bn decrease in recoverable value and asset write-offs.
However, strong operational cash flow enables the payment of US$1bn in extraordinary dividends in January 2026, along with a planned US$1.8bn in March.
In a company statement, CEO Gustavo Pimenta said: “In 2025, Vale delivered outstanding performance, achieving or exceeding all guidances, while advancing strategic priorities that reinforce our long-term ambition.”
“In our operations, we reached the highest iron ore and copper production levels since 2018 and delivered double digit production growth in nickel,” he added. “This strong operational performance was supported by improved asset reliability and the successful ramp up of key growth projects.”
A mixed fourth quarter
In Q4, proforma EBITDA was US$4.8bn, a 17% increase year-over-year, driven, like the full-year by higher sales volumes for iron ore, copper and nickel.
Despite strong operations, Vale recorded a US$3.8bn net loss for the quarter, largely drive by a US$3.5bn impairment of Canadian nickel assets and a US$2.8bn deferred tax write-off.
Iron ore all-in costs in the quarter were US$54.3/t, 10% higher year-over-year, but nickel all-in costs decreased year-over-year by 35% to US$9,001/t due to by-product credits.
The company also achieved a major goal by having no dams at emergency Level 3 - which signifies an urgent, critical situation where a dam failure is imminent, in progress or has already occurred.
Key strategic highlights in 2025
Gustavo, who took over as CEO of Vale in October 2024, is focused on transforming the company into a safer, more sustainable and high-value mining leader, with a strong emphasis on expanding copper production and increasing efficiency.
Under his leadership in 2025, Vale completed the repurchase of 23% of outstanding participating debentures, reducing financial liabilities.
Heading into 2026, the company remains focused on its product development on high-grade, sustainable and technologically advanced iron ore production.
This particularly involves advancement of the Capenema project, which began commissioning in late 2024, utilising “natural moisture” processing, which eliminates the need for water in mineral processing and reduces tailings generation.
The project supports the production of high-grade pellet feed, essential for direct reduction steelmaking, which aligns with the industry’s need for lower greenhouse gas emissions.
This reinforces a product portfolio strategy that prioritises sustainable materials and supporting demand for greener, low-carbon steel.
To maintain the company’s high-volume iron ore production, while expanding copper mining, Vale launched the New Carajás Programme in February 2025.
This is a R$70b (US$12.3bn) strategic investment to expand the materials’ production in Pará, Brazil through 2030, boosting production to support the global energy transition.
Gustavo added: “As we enter 2026, we remain focused on operational excellence, sustainable growth through initiatives such as the New Carajás Programme, and on delivering superior long-term value for all our stakeholders.”
