- Mining giant Vale has obtained a preliminary license for its Bacaba project, the first step toward doubling its copper production in the Brazilian Amazon over the next decade.
- Experts warn the expansion, near several conservation areas, will worsen deforestation, increase water stress and raise the risk of pollution.
- The global demand for copper is expected to rise by more than 40% by 2040, and almost all of Brazil’s known reserves are in the Amazon.
The Carajás mining district in the Brazilian Amazon is home to the world’s largest known reserves of high-grade iron ore, and also holds other major deposits of commercially valuable minerals. Since its discovery in the late 1960s, it has made Brazil a top player in the global mining scene. Today, Carajás hosts large, active mining projects, supported by extensive industrial and logistical infrastructure, operated primarily by mining giant Vale (VALE3).
Yet these sites are dotted among a mosaic of conservation areas; some mines are just a few hundred meters away from Campos Ferruginosos National Park, for example. And as is the case with large forest enterprises in Brazil, mining development in Carajás has been accompanied by significant, ongoing socioenvironmental impacts. The opening of mines, construction of dams and expansion of mining infrastructure have contributed to deforestation, ecosystem fragmentation, biodiversity loss, water stress, land conflicts, territorial pressure and disorderly urban growth.
Now, amid the global race for critical minerals, Vale has redefined Carajás’s strategic role for the coming years. In February, in the presence of Brazilian President Luiz Inácio Lula da Silva, the company announced a 70 billion reais ($13.1 billion) investment in the Novo Carajás program, with a particular focus on copper production. While the initiative has been praised for its economic benefits, it has also sparked concerns about the severe impacts of new mining operations on local communities and protected areas of the Amazon.
The first step was taken in June, when Vale announced it had obtained a preliminary license for the Bacaba project, a new copper operation in Canaã dos Carajás. The company plans to invest $290 million to develop the mine, and production is scheduled for the first half of 2028, with an expected output of at least 50,000 metric tons of copper concentrate per year.
Bacaba will extend operations at the Sossego mining complex, active since 2004, for at least another eight years. This satellite mine, 9 kilometers (5.6 miles) from the original Sossego site, is strategic for Vale’s copper plans, as it streamlines the environmental licensing process and takes advantage of existing processing and transportation infrastructure, reducing installation and operating costs.
“This is the first in a series of copper projects that Vale plans to develop in the Carajás mineral province, with the strategic goal of doubling its copper production capacity over the next decade,” Marcelo Feriozzi Bacci, Vale’s executive vice president for finance and investor relations, said in a company statement. Vale is already assessing other nearby satellite sites.
According to Vale CEO Gustavo Pimenta, the Brazilian mining giant “fell behind in the copper race” but aims to regain ground by accelerating the development of its mines, Brazilian newspaper Folha de S.Paulo reported. The company plans to double its copper production by 2035 to rank among the top five worldwide. Vale produced 348,000 metric tons of copper in 2024, a result driven by the performance of the Salobo mine, also located in the Carajás region.
The preliminary license for the Bacaba operation, supported by the extensive infrastructure Vale already has in Carajás, suggests that the company will face few major obstacles in obtaining permits for other mining projects in the region — an advantage that could give it an edge in the turbulent and competitive copper market.
Experts interviewed by Mongabay say that licensing processes for new mining areas, especially in the Brazilian Amazon, are highly complex and can take up to 20 years before production begins. By pursuing a satellite mine strategy, Vale reduces regulatory requirements and accelerates new mining fronts.
Copper’s global race
Copper is a strategic raw material for the low-carbon energy transition and the digital economy. Malleable, durable, recyclable, and highly efficient at conducting heat and electricity, the metal is widely used in wind turbines, solar panels, smart grids, electric vehicle motors and batteries. It’s also essential for powering data centers that support the development of artificial intelligence.
According to a recent report by the U.N. Conference on Trade and Development (UNCTAD), global demand for copper is expected to rise by more than 40% by 2040, creating a supply bottleneck that could push prices higher. This is likely to spur new copper mining projects worldwide and increase pressure to develop them quickly, raising concerns about social and environmental impacts in regions across the globe.
“Copper consumption has increased significantly with the transition to a lower-carbon world, without a proportional rise in production,” Marcos André Gonçalves, president of the Agency for Development and Innovation in the Brazilian Mineral Sector (ADIMB), told Mongabay by phone. “Mining is costly and requires substantial investment, as deposits are becoming deeper and contain less metal.”
A report commissioned by the European organizations Fern and Rainforest Foundation Norway showed that 118,000 hectares (about 292,000 acres) of forests around the world may be destroyed by 2050 to meet the EU’s green aspirations — 1.8% of the total deforestation recorded across tropical forests in 2024, according to Global Forest Watch. Brazil, home to large reserves of nickel, graphite, rare earth metals, lithium and niobium, would be one of the most affected countries.
The nation accounted for only 1.7% of the 23 million metric tons of copper concentrate produced worldwide in 2024, but it has the potential to expand output in the coming years. According to the U.S. Geological Survey (USGS), the country holds 7.7% of known copper reserves — more than 95% of them in the Amazon — with Vale as the leading mining company.
“The greatest known potential for Brazilian copper is in the Carajás region. It is much easier for Vale to explore a new deposit when it has a licensed, operational industrial plant nearby,” Gonçalves said. “The company also benefits from decades of experience in the area.”
Vale’s controversial actions
The Novo Carajás program has reignited long-standing concerns about the environmental impacts of the company in the Brazilian Amazon, since its operations are so close to conservation areas.
“There is particular concern about worsening water shortages,” Luiz Jardim Wanderley, a geographer and professor at Fluminense Federal University (UFF), told Mongabay. “Mining at the tops of hills reduces the amount of water in the water table and rivers and also increases the risk of contamination.”
The main conservation areas surrounding Vale’s copper project include Carajás National Forest, Tapirapé-Aquiri National Forest, Campos Ferruginosos National Park, and Igarapé Gelado Environmental Protection Area.
In February 2024, a judge in Pará state, where Carajás is located, suspended Vale’s activities at the Sossego copper mine. The state environmental agency, SEMAS, told Mongabay in an email that the company “was not complying with the social programs related to its operating license.” Activities at the Sossego mine resumed in June 2024 after Vale signed a deal before Brazil’s Supreme Court to comply with requirements.
Residents of rural communities in Canaã dos Carajás, near the Sossego mine, have long complained about forced evictions, frequent explosions, cracks in their homes, dust, and other impacts from mining activity. They say they also live in constant fear of the collapse of a tailings dam holding back mining sludge, given Vale’s recent history of similar disasters in Mariana (2015) and Brumadinho (2019) in the state of Minas Gerais.
Vale has also been linked to land fraud. An investigative report by Brazilian news outlet Sumaúma detailed how the mining company took possession of 24,000 hectares (59,300 acres) of public land belonging to the federal government and settlements under INCRA, the national land reform institute, in the Carajás region, pressuring farmers and attempting to demobilize social movements raising questions about the company’s activities.
“Mining in the Amazon has significant effects on rural populations,” Wanderley told Mongabay. “In Canaã do Carajás, pressures and conflicts affect populations from old rural settlements, squatters and landless workers. We have also seen effects on traditional, Indigenous, and quilombola [rural Afro-Brazilian] populations.”
Vale did not respond to Mongabay’s requests for comment. In response to Sumaúma’s investigation, the company declined to comment on the irregular purchase of land or on the overlap of public land with rural properties it claims to own. Vale also said the Sossego mine operation has had no significant environmental impact and that it complies with the policies outlined in its operating license.
According to Wanderley, Vale’s purchase of land is a method to eliminate potential conflicts with owners or occupants. Acquiring plots around its existing mining areas provides greater security for the company, Wanderley said, creating a buffer against possible illegal occupation and other obstacles to its operations.
In addition to the impacts on rural areas, Wanderley also highlighted the rapid expansion of the city of Canaã dos Carajás, which has created a new wave of problems related to unemployment, social tensions and informal settlements.
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