Vale CEO Gustavo Pimenta Talks Global Metals Market

Summary

Bloomberg Talks: Vale CEO Gustavo Pimenta on the Global Metals Market

Episode Date: June 8, 2026

Host: Lisa Abramowicz (Bloomberg)
Guest: Gustavo Pimenta (CEO, Vale)

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Overview

This episode centers on the surging global demand for critical minerals, Vale’s strategic position as a leading supplier, and how geopolitical and market dynamics are shaping the future of commodities like iron ore, copper, nickel, and rare earths. CEO Gustavo Pimenta provides an insider’s view on global supply chain shifts, growth strategies, regional opportunities, and the evolving business environment for metals amid the increasing focus on national security and energy transition.

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Key Discussion Points & Insights

1. Unprecedented Demand for Critical Minerals

(Timestamps: 00:58–01:51)

• Gustavo Pimenta opens by describing the current demand as “super constructive” and “historical,” emphasizing strong interest from clients and governments looking for security of supply.
  • Quote (C, 01:23): “The amount of demand is super constructive. It’s historical for us, I think, across all the critical minerals we are seeing and a very strong support from clients all over the world…So across the board, we are seeing tremendous amount of demand for all of the mining that we produce.”
• Iron ore remains robust, while copper and nickel also see significant growth.

2. Geographic Diversification Beyond China

(Timestamps: 01:51–03:07)

• While China remains the key market, Vale is witnessing growing demand in Southeast Asia, the US, Europe, and especially India.
  • Quote (C, 01:56): “China continues to be a strong market for us…But we are seeing growth outside China. We are seeing growth in Southeast Asia, we are seeing growth in the U.S., Europe.”
• India is poised to double crude steel production over the next decade—a major driver for iron ore.

3. Copper’s Booming Future

(Timestamps: 03:07–04:32)

• Copper production is rising, driven by electrification trends (including AI and data centers).

• Vale aims to double copper output from 380 ktons to 700 ktons, capitalizing on strong mineral endowments in northern Brazil.

• Expansion is focused on “brownfield” projects—expanding existing mines rather than acquiring new companies, leveraging established infrastructure (rail, ports).

  • Quote (C, 03:25): “The electrification of everything...will require an enormous amount of supply from copper. We in Brazil are sitting in a tremendous endowment. Vale has a great endowment, especially in the north of Brazil, to produce more copper.”
  • Quote (C, 04:09): “For us it’s more about brownfield. Because the unique advantage of Vale is…the entire infrastructure...So it’s less about M&A, but more about unlocking the potential that we already have.”

4. Rare Earth Minerals and Strategic Caution

(Timestamps: 04:32–05:18)

• Brazil holds one of the largest rare earth reserves outside China.
• Vale is assessing rare earth opportunities but remains cautious, prioritizing scale and core strengths (iron ore, copper, nickel).
  • Quote (C, 04:39): “We do have certain opportunities in Brazil that we are assessing. For us, there are some questions that we have to answer in terms of scale. Can we compete with…the Chinese?...I would say our biggest bet is to focus on what we are good and have a scale at this point.”

5. Global Partnerships and Investment Interest

(Timestamps: 05:07–05:39)

• Vale welcomes investment and partnerships from both international and local actors, aimed at accelerating critical mineral development.
  • Quote (C, 05:18): “...we have a few examples here in Brazil and outside where we are working together to unlock…especially in the critical minerals agenda.”

6. Impact of Oil Prices and Geopolitical Risk

(Timestamps: 05:39–06:57)

• Rising oil prices have increased transport costs but haven’t dampened demand or hit margins; Vale has been able to hedge costs effectively.

  • Quote (C, 05:49): “We had an impact in the overall cost for our transportation of the iron ore...but when we look at...pricing for commodities…and in particular case for iron ore, price has increased more than the impact that we had in our cost.”

• No current sign of “demand destruction” from price increases.

  • Quote (C, 06:38): “At this point there is no impact in demand destruction. We are not seeing the markets continue solid, strong clients continue to produce.”

7. Operational Challenges: Conflict in Oman

(Timestamps: 06:57–08:02)

• Conflict in the Middle East has shuttered Vale’s pelletizing facility in Oman, but the company is ready to restart once safety can be secured.
• The Oman facility is being expanded and considered a strategic hub for serving India, Southeast Asia, and the region.
  • Quote (C, 07:09): “We are ready to reopen. Certainly we are monitoring the conflict and we want to make sure our people are safe…We are in fact as we speak doubling the capacity of that facility.”
  • Quote (C, 08:02): “We continue to be very committed and we think it’s a great market for us to have to serve India, to serve other markets, even Southeast Asia.”

8. Full-Year Forecast Confidence & Record Production

(Timestamps: 08:13–08:47)

• Pimenta remains bullish about Vale’s full-year outlook, buoyed by a strong Q1 and margin expansion despite fuel cost increases.
  • Quote (C, 08:18): “The overall expectation for the year is, is great actually…We had record production in copper, nickel and iron ore in the Q1. So I’m very optimistic about the full year performance.”

9. The Supercycle: Comparison to Past Commodity Booms

(Timestamps: 08:47–09:50)

• The CEO compares the current demand environment to previous supercycles (2010–2014), but suggests this cycle is stronger and underpinned by enduring trends (green transition, geopolitics).
  • Quote (C, 08:59): “What we’ve seen for iron ore back in, you know, 2010, 2014, that period with the super cycle is what you’re seeing, the critical minerals. But…the opportunity this time around is even greater.”
  • “It’s great to be a miner these days. So we are very excited with that.”

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Notable and Memorable Quotes

• On demand trends (C, 01:23): “The amount of demand is super constructive. It’s historical for us…a very strong support from clients all over the world.”
• On China and new growth regions (C, 01:56): “China continues to be a strong market for us…But we are seeing growth outside China.”
• On copper and electrification (C, 03:25): “The electrification of everything…will require an enormous amount of supply from copper.”
• On brownfield strategy (C, 04:09): “For us it’s more about brownfield…So it’s less about M&A, but more about unlocking the potential that we already have.”
• On rare earths and strategic focus (C, 04:39): “I would say our biggest bet is to focus on what we are good and have a scale at this point. Iron ore, copper and nickel.”
• On Middle East operations (C, 07:09): “We are ready to reopen. Certainly we are monitoring the conflict and we want to make sure our people are safe.”
• On the current supercycle (C, 08:59): “The opportunity this time around is even greater…It’s great to be a miner these days.”

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Major Segments and Timestamps

• Introducing Vale and Demand Shifts – 00:58–01:51
• Geographic Diversification – 01:51–03:07
• Copper Growth Strategy – 03:07–04:32
• Rare Earths and Strategic Caution – 04:32–05:18
• Partnerships & Investors – 05:07–05:39
• Oil & Freight Cost Impact – 05:39–06:57
• Dealing with Middle East Conflict – 06:57–08:02
• Full-Year Outlook – 08:13–08:47
• Commodity Supercycle Comparison – 08:47–09:50

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Conclusion

Gustavo Pimenta’s perspective underscores Vale’s strong positioning and confidence in long-term demand for critical minerals, amidst changing geopolitical tides and market disruptions. The company prioritizes expanding existing assets over risky acquisitions, leverages Brazil’s natural endowments, and remains optimistic about global diversification beyond China. Operational resilience and focus on safety and partnerships also stand out as major pillars for Vale’s continued leadership in the global metals market.

Transcript

[A]

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[B]

Bloomberg Audio Studios Podcasts Radio News it is one of the big narratives of the last year, a signature policy of the second term of the Trump administration and that is up supplies of critical minerals and commodities, including iron ore pellets, copper and nickel. It's become, Tim though, really a focus for countries and governments around the world.

[A]

On that, we're going to head to the Bloomberg News bureau in Rio de Janeiro and to one of the co hosts of Bloomberg Surveillance, Lisa Abramowicz, sitting down with the CEO of one of the world's largest mining companies, Gustavo Pimenta, the CEO of Vale. Lisa, take it away.

[B]

Thank you so much, Tim. Carol, I am here in our beautiful Rio office with Gustavo Pimenta, the CEO of Vale, the world's biggest iron ore miner and one of the biggest miners just in general around the world. At this critical time, as Tim and Carol were just talking about, there has been this rush to any kind of critical minerals and to secure it for security reasons as well as the infrastructure buildout. How much more demand have you seen just recently?

[C]

Look, the amount of demand. First of all, good to see you, Lisa. The amount of demand is super constructive. It's historical for us, I think, across all the critical minerals we are seeing and a very strong support from clients all over the world from countries in terms of looking for security of supply. Iron ore continues to be strong if you look at copper, nickel. So across the board, we are seeing tremendous amount of demand for all of the mining that we produce.

[B]

The bulk of your customers typically come from China. Have you seen more interest recently from the United States?

[C]

We are. China continues to be a strong market for us, very relevant for everything we do. But we are seeing growth outside China. We are seeing growth in Southeast Asia, we are seeing growth in the U.S. europe. So there is a diversification going on these days with other markets looking to amplify their access to critical minerals.

[B]

People talk about a commodity supercycle. Iron ore hasn't participated as much in terms of the price gains and there has been a sort of plateauing in demand for from China. Where are the growth opportunities specifically when it comes to iron ore?

[C]

So we continue to be very optimistic about iron ore. If we step back and look at the overall demand, we have population growth, we have industrialization, we have other markets growing. Certainly China probably has plateaued and reached their overall peak. In terms of production. They are doing more than a billion tons of crude steel production annually. We think they will continue to be at that level. But we are seeing growth in Southeast Asia. India is growing substantially. We expect India to double the crude steel production in the next 10 years. Even the US is growing. So we are seeing more demand outside China. China will continue to be the key market for all of us, but we are seeing greater demand in other markets as well.

[B]

You've seen your copper production increase, I believe, 5 to 10% of total revenues over the past five years. You've talked about wanting to double again over the next 10 or so years. What does that entail in terms of investing in existing mines? In terms of acquiring new assets? What exactly are you looking at?

[C]

Look, we are very optimistic also about the copper demand. I mean the electrification of everything which is. Which is a secular trend. Data centers, all of AI. This will require an enormous amount of supply from copper. We in Brazil are sitting in a tremendous endowment. Valley has a great endowment, especially in the north of Brazil, to produce more copper. We've been doing. Last year we did about 380 kilotons. We want to double this to about 700 kilotons. There is an enormous opportunity for us to accelerate the development of the mineral, the critical minerals and the deposits that we have in the country.

[B]

Well, does that require acquiring other companies? Does that require investing large sums in existing mines?

[C]

So for us is more about brownfield. Because the unique advantage of Valley is the fact that we operate with very efficient capital intensity for the projects. Because I have the rail, I have the port, I have the entire infrastructure. So for us it's more about developing near mines and the brownfield around our existing operations. So it's less about M and A, but more about unlocking the potential that we already have.

[B]

What about rare earths? Brazil sits on the biggest reserve of rare earths behind China. Are you planning to expand into that at all?

[C]

Look, we've been studying if this is something that would make sense for Valley. We do have certain opportunities in Brazil that we are assessing. For us, there are some questions that we have to answer in terms of scale. Can we compete with some of the international players like the Chinese? So this is something that we are currently assessing. I would say our biggest bet is to focus on what we are good and have a scale at this point. Iron ore, copper and nickel. But we are keeping an eye open for other opportunities.

[B]

Are there any countries or players in countries that would be Interested in assisting you to build that out. Given the fact that there has been this focus by the US on diversity, developing national security and sort of getting reserves.

[C]

Certainly a lot of investors, international investors, local investors that want to partner with us and we have a few examples here in Brazil and outside where we are working together to unlock. Because it's a lot about accelerating the development of what we have, especially in the critical minerals agenda. So we are certainly open to discussions with partners that are willing to come and co invest with us.

[B]

What about the price of oil? Given the fact that you have to move all of these very heavy materials from one place to your major customer, which is over in China, has that hampered demand at all?

[C]

No demand, no impact on demand. I think what we had since we are more distant from our end user or end client, which in this case continues to be China, our most relevant consumer, especially for iron ore, we had an impact in the overall cost for our transportation of the iron ore. Now but when we look at the overall pricing for commodities and in particular case for iron ore, price has increased more than the impact that we had in our cost. Because the marginal producers have been impacted more than Valley Valley has long term affreightment for our vessels. We are hedged on the fuel cost. So the impact for us hasn't been negative. In fact we had a margin expansion as a result of, of, of the conflict. But we continue to monitor that very closely.

[B]

Is there a limit to how much customers will accept in terms of price increases?

[C]

Look, certainly we have to see, I think at this point there is no impact in demand destruction. We are not seeing the markets continue solid, strong clients continue to produce. We have to continue to manage to see to what extent they can absorb the price increase. But at this point we are not seeing impact in the overall demand.

[B]

You have a pellet manufacturing place in Oman and it has been taken offline as a result of simply not being able to ship the pellets out from the area due to the conflict there. What is your plan in terms of reopening that?

[C]

Look, we are ready to reopen. Certainly we are monitoring the conflict and we want to make sure our people are safe. And that's the most important, important thing for us. It is very well located. Oman has a special strategic location even within the Middle East. We have a great asset. It's a pelletizing facility which is very important for decarbonization for a lot of the energy transition discussions that we have. We are in fact as we speak doubling the capacity of that facility. At this point, we are waiting for the conflict to end or to reduce in terms of the potential impact for us to resume operations. We continue to be very optimistic about the Omanian operations that we have and we think that could be a hub for a lot of the clients that we have in the region.

[B]

So this hasn't pushed out your ambitions at all for the region or curtailed them in any way. The fact that the conflict has gone

[C]

particularly with Oman, we continue to be very committed and we think it's a great market for us to have to serve India, to serve other markets, even Southeast Asia. So it's a very strategic asset that we have.

[B]

Are you still confident about your full year forecast for costs? Do you expect that to stay where it is?

[C]

So as we mentioned before, the overall expectation for the year is, is great actually. I mean, we had a very strong first quarter production across the board and all commodities are trending very nicely. We had record production in copper, nickel and iron ore in the Q1. So I'm very optimistic about the full year performance. We did have an impact in the overall cost base given the few cost, but overall margin has expanded. So I continue to expect a great year for us.

[B]

You've been in the business a long time in terms of commodities and energy production in general. Do you have any analog to this period in terms of the supercycle that you're seeing and the demand level that you're seeing from clients?

[C]

Look, I think what we've seen for iron ore back in, you know, 2010, 2014, that period with the super cycle is what you're seeing, the critical minerals. But I, you know, the more I look into, the more we discuss with clients, I think the opportunity this time around is even greater. So I think we are in a unique moment of our history. Valid, particularly because look, we are located in a country that has an enormous endowment, very well positioned from the geopolitical standpoint. I mean, we are, we do business with the us, with Europe, with China. We have an enormous endowment. We have the infrastructure all in place and the demand is growing across the board on all critical minerals. Even iron ore continues to be very strong. So we are very optimistic. I think it's a unique, it's great to be a miner these days. So we are very excited with that.

[B]

Gustavo Pimenta, thank you so much for being with us. Thank you. That is the CEO of Vale, Ryan

[A]

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