Vale's relationship with Brazil's government has improved

Vale's relations with the Brazilian government have improved, easing tensions that affected investor confidence last year. CEO Gustavo Pimenta noted a shift in dynamics with President Lula's administration, which had previously criticized the company on various issues. The government recently supported Vale's R$70 billion investment plan over five years at its Carajás complex, signaling a more cooperative relationship. Pimenta emphasized Vale's focus on increasing copper production, aiming to double output to 700,000 tonnes annually. Pimenta expressed skepticism about investing in lithium, citing concerns over long-term fundamentals. He highlighted the company's strategy to adapt to the growing demand for copper in the clean energy transition.