Brazilian miner Vale has successfully completed the throughput test for the first phase of the Salobo III copper project, in the Carajás region in Brazil, with the Salobo complex exceeding an average of 32-milllion tonnes a year over a 90-day period.
This achievement is highlighted as a significant milestone under the Salobo streaming agreement with Wheaton Precious Metals. Vale in 2015 announced the by-product streaming agreement with Wheaton, which was amended this year.
In 2019, Vale started construction on the $1.1-billion Salobo III expansion project. Combined with plants I and II, throughput capacity now exceeds 32-million tonnes a year and is currently ramping up to reach full capacity of 36-milllion tonnes a year in the fourth quarter of 2024.
“The successful ramp-up of the Salobo III project represents significant growth in a top-tier operation in our energy transition metals business.
“This accomplishment is the result of enhancements to Salobo’s reliability and a steadfast commitment to operational excellence,” says Vale CEO and Vale Base Metals board director Eduardo Bartolomeo.
“Our strategic position in the Carajás region is an important lever to increase our copper production to 900 000 t/y over the next decade and deliver high-quality products to the global energy transition,” he adds.
Under the terms of the agreement with Wheaton, Salobo will receive $370-million for completion of the first phase of the Salobo III expansion project.
The remaining balance of the expansion payment will be triggered once Vale expands actual throughput above 35-million tonnes a year for a period of 90 days.
Also, Wheaton will be required to make yearly payments of between $5.1-million and $8.5-million for a ten-year period should the Salobo complex continue to produce within certain copper grades.