Vale’s 120km Carajás Copper, Critical Minerals Drilling by 2026

Vale Base Metals Amplifies Copper Drilling Efforts in Pará

In an effort to ramp up copper extraction, Vale Base Metals has doubled the intensity of drilling in the Carajás District in Pará in 2025. This initiative is set to double yet again in 2026, reaching over 120,000 meters of rock drilled. This distance exceeds the length needed to cross Rio de Janeiro end-to-end four times. Consequently, Vale’s copper resources have reached a record high of 44.9 million contained tons.

120,000 Meters of Drilling: An Exploration Deep Dive

The ambitious goal of drilling 120,000 meters doesn’t imply a single drill going 120 km in one direction. Rather, it accounts for hundreds of exploratory drills at various angles and depths throughout the year. These drills aim to pinpoint where copper deposits, as indicated by geological models, are located. The process involves drilling, collecting rock core samples, conducting laboratory analysis, adjusting the model, and drilling new holes.

The Carajás Mineral District in southeastern Pará, known for being the largest iron ore reserve on the planet, is the ideal location for these operations. The area, one of the largest metallogenic systems in the world, holds deposits of copper, gold, manganese, and nickel still being mapped. While the Northern Range of Carajás has been operational for years, the N4 and N5 systems and surrounding areas still hold untapped deposits that Vale is actively exploring.

The increase in copper resources by 7% within a year (from 41.9Mt to 44.9Mt contained) signifies future value equating to billions of dollars, especially with current copper prices exceeding US$10,000 per ton.

The Global Race for Copper

Despite not having the glamour of lithium or the prestige of gold, copper plays a crucial role in the energy transition. It is utilized in every meter of electrical cable, every electric car motor, every wind turbine, and every solar panel. For instance, an electric vehicle uses three times more copper than a combustion vehicle, and an offshore wind turbine requires tons of the metal.

As per the International Energy Agency, global demand for copper is expected to grow exponentially until 2040. However, existing mines typically take between 10 to 20 years to become operational after the deposit is discovered. Therefore, to meet the demand for copper in 2035, the mineral needs to be discovered and developed immediately — a challenge that Vale is addressing with its 120,000 meters of drilling in Carajás by 2026.

Brazil’s Role in the Critical Minerals Race

With the second-largest iron ore reserve in the world, the largest niobium reserve, significant reserves of lithium, graphite, and rare earths, and now a growing position in copper, Brazil has a robust portfolio in the race for critical minerals. This portfolio places the country in a favorable position in the global competition for critical minerals which includes leading players such as the USA, EU, and China.

In 2024, the European Union approved the Critical Raw Materials Act to ensure access to strategic minerals, and Brazil has been identified as a priority partner. Similarly, the USA has a critical minerals agreement with Brazil, which includes partial tariff exemptions for Brazilian refined copper exports. The Carajás subsoil has never held so much geopolitical value as it does now.

Vale operates Carajás as an integrated ecosystem consisting of a mine, beneficiation, railway (EFC), and port. The existing infrastructure that transports iron ore is already equipped to transport copper, significantly reducing the development time of newly discovered deposits.

The Future of 120,000 Meters of Drilling

The principle behind exploratory drilling is straightforward: mining can only occur where deposits have been discovered. Every meter of rock core collected in Carajás in 2026 will provide data to improve the geological model and eventually transform potential into proven reserves. This helps in making informed investment decisions in new mines.

If the drilling results confirm the models, Vale could announce new copper mines in Carajás in the upcoming decade. This could result in Brazil becoming one of the world’s largest copper producers, a metal as strategic in the 2030s as oil was in the 1970s.

The race has already begun. While Chile and Peru dominate the current copper production, the Democratic Republic of the Congo leads in cobalt, and Australia has the largest lithium reserves. Brazil has the potential to become the largest copper supplier in the Americas or lose the opportunity to competitors drilling faster.

The copper race extends beyond mere drilling numbers and has a distinct geopolitical dimension. In 2022, the USA designated copper as a critical mineral, with the Inflation Reduction Act (IRA) directing billions of dollars in subsidies to the domestic and allied critical minerals supply chain. As a non-NATO partner of the USA with significant reserves in Carajás, Brazil holds a strong negotiating position for preferential access to American critical minerals markets. The new copper mine in Carajás that may emerge from the 120,000 meters of drilling in 2026 could be worth more than the market price of the metal. It could represent Brazil’s strategic position as a reliable supplier in a supply chain that the USA is keen to diversify away from China.

With 44.9 million tons of copper in the Carajás subsoil, the question remains: will Brazil become a critical minerals powerhouse or export raw ore and leave the added value to others?