Salobo Operations Resource Estimate: $16.61B NPV, $3.92B Capex
Vale S.A.'s Salobo Operations in Pará State, Brazil has a Mineral Resource Estimate outlining an after-tax NPV of $16.61B and initial capital of $3.92B.
Vale S.A.'s Salobo Operations has reported Mineral Resource Estimate results for the copper / gold project in Pará State, Brazil. The study headlines an after-tax net present value of $16.61B at a 7% discount rate. It reflects Vale S.A.'s (VALE) latest disclosed economics for the asset.
Economics. The after-tax NPV is $16.61B using a 7% discount rate. Initial capital expenditure is estimated at $3.92B. Economics are based on Copper US$9,150/t reserve price; Gold US$1,925/oz reserve price; resource estimate: copper US$10,000/t, gold US$2,300/oz; exchange rate R$/US$ 5.30.
Production and mine plan. The project envisions an open-pit operation. Average head grade is 0.60% Cu, 0.34 g/t Au (reserves).
Resources and ownership. The company holds a 90% interest in the project. Royalties and streams: Streaming arrangement with Wheaton Precious Metals (see Chapter 3.8).
These figures are extracted from Vale S.A.'s technical disclosures and reflect the most recent Resource Estimate on file. Compare this project against other developers and producers in our project economics database, and always verify the numbers against the original technical report before making any investment decision.
Reserves & Resources
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Proven | 349.6 Mt | 0.59% Cu, 0.34 g/t Au | 2,067 kt Cu, 3,794 koz Au |
| Probable | 674.0 Mt | 0.60% Cu, 0.34 g/t Au | 4,055 kt Cu, 7,316 koz Au |
| Proven & Probable | 1,023.6 Mt | 0.60% Cu, 0.34 g/t Au | 6,122 kt Cu, 11,110 koz Au |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured | 11.6 Mt | 0.48% Cu, 0.25 g/t Au | 56 kt Cu, 91 koz Au |
| Indicated | 613.3 Mt | 0.45% Cu, 0.22 g/t Au | 2,740 kt Cu, 4,349 koz Au |
| Measured & Indicated | 624.8 Mt | 0.45% Cu, 0.22 g/t Au | 2,796 kt Cu, 4,441 koz Au |
| Inferred | 197.7 Mt | 0.6% Cu, 0.3 g/t Au | 1,080 kt Cu, 1,970 koz Au |
Our Analysis
- NPV after-tax
- $16.61B
higher than 100% of 360 projects we track
- Initial capex
- $3.92B
24% of NPV
costlier than 98% of 376 projects we track
- Study price assumption
- Copper US$9,150/t reserve price; Gold US$1,925/oz reserve price; resource estimate: copper US$10,000/t, gold US$2,300/oz; exchange rate R$/US$ 5.30
- Spot copper today
- $6.52/lb
Ranked against the 360 projects we track, this asset sits at the top of the NPV pile, and its capital intensity is the reason. An after-tax NPV of $16.61B places it above every peer in our universe, while initial capex of $3.92B represents just 24% of that value, a ratio lower than 98% of the 376 projects we track. That combination is rare: a mega-project that does not need to be a mega-build. For an investor, the rank says the scale of the prize is proven; the capital-light profile says the execution risk is comparatively contained.
The funding picture reinforces that read. The build cost is small relative to the company's US$63.79B market cap, and the NPV itself sits at roughly 0.3x that same market cap. A large-cap can absorb this spend without breaking its balance sheet, which removes the dilution and financing overhang that typically discounts resource-stage assets. The two-sided caveat: the market may simply be pricing the asset as a resource estimate rather than a mine, and it is right to do so. This is a Resource Estimate, not a feasibility study, so the economics are indicative at best. The gap between the NPV rank and the market's valuation is as much a statement about stage risk as it is about unrecognised upside.
The constraint that matters most is the price deck. The study assumes copper at US$9,150/t reserve and US$10,000/t resource, while today's spot sits well above those levels. The project's economics are built on prices below the current market, which is a genuine buffer, not a promotional trick. The jurisdiction, Pará State, Brazil, carries the usual permitting and infrastructure friction, but the commodity mix and the capital-light design argue for patience. The single question that decides whether this works: can the company move from resource estimate to a bankable study without the price deck collapsing under it?
Our take, benchmarked against the project economics in the Mining Stocks database. Figures are estimates drawn from company technical reports — not investment advice; always verify against the source filing.