How Did Iron Ore and Nickel Giant Vale Perform in 2025?

Vale has demonstrated robust mining operations throughout 2025, surpassing all production targets despite financial challenges stemming from asset impairments.

The Brazilian mining giant's operational achievements highlight the effectiveness of ongoing mine optimisation initiatives and the successful commissioning of key mining projects, even as non-cash accounting adjustments impacted bottom-line results.

The company's mining operations delivered record output across multiple commodities, with iron ore production reaching 336 megatonnes (Mt) and copper mining achieving 382 kilotonnes – the highest levels for both minerals since 2018.

Nickel mining operations contributed 177 kt to the annual output, supported by the ramp-up of projects including Capenema and Oçna Ouma. These production milestones could demonstrate the impact of improved mine planning and asset reliability initiatives across Vale's global mining portfolio.

Operational efficiency at the mine site level showed measurable improvement, with iron ore C1 cash costs (direct operating costs at the mine) declining to US$21.3/t, marking the second consecutive year of cost reductions.

This improvement reflects enhanced mining productivity and operational discipline across the company's iron ore operations.

However, the mining company's net income fell 67% to US$1.98bn for 2025, primarily attributed to a US$4.6bn impairment charge related to Canadian nickel mining assets and deferred tax write-offs.

Despite these accounting adjustments, strong operational cash generation from mining activities enabled Vale to declare US$1bn in extraordinary dividends payable in January 2026, with an additional US$1.8bn planned for March 2026.

Operational performance drives results

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," Gustavo says in a company statement.

"In our operations, we reached the highest iron ore and copper production levels since 2018 and delivered double digit production growth in nickel. This strong operational performance was supported by improved asset reliability and the successful ramp up of key growth projects."

The fourth quarter presented mixed results for mining operations. Proforma EBITDA (earnings before interest, taxes, depreciation and amortisation) reached US$4.8bn, representing a 17% year-over-year increase driven by higher sales volumes across iron ore, copper and nickel mining operations.

However, the quarter yielded a US$3.8bn net loss, largely due to a US$3.5bn impairment of Canadian nickel mining assets and a US$2.8bn deferred tax write-off.

Mine-level cost performance

Iron ore all-in costs during Q4 reached US$54.3/t, marking a 10% increase year-over-year, while nickel all-in costs at mining operations decreased 35% year-over-year to US$9,001/t, aided by by-product credits from integrated mining operations.

The company achieved a significant safety milestone by eliminating all dams classified at emergency Level 3, which signifies an urgent, critical situation where a dam failure is imminent, in progress or has already occurred.

Advancing mining technology and sustainability

Looking towards 2026, Vale's mining development strategy centres on high-grade, sustainable iron ore production. The Capenema project, which entered commissioning in December 2024, uses "natural moisture" processing technology – a mining innovation that eliminates water requirements in mineral processing and significantly reduces tailings generation.

The technique supports production of high-grade pellet feed, essential for direct reduction steelmaking processes aligned with lower greenhouse gas emissions targets.

To sustain high-volume iron ore mining while expanding copper operations, Vale launched the New Carajás Programme in February 2025. The US$12.3bn mining development initiative aims to expand production capacity in Pará, Brazil through 2030, positioning the mining operation to support global energy transition demand.

Gustavo said: "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."