Vale is looking to increase its coal production, with Australia as a potential centre for the expansion.
The Brazilian miner is aiming to boost its Australian coal output by up to a third next year, as well as at its coal projects in Colombia and Mozambique.
However it would do this solely through organic growth, expanding its existing Australian tenements in the Bowen and Galilee basins.
The company stated that it sees “a bright future for coal.”
This projected growth comes despite the ongoing mining tax debates.
Vale’s global managing director of coal Decio Amaral has said that despite its coal tenements coming under the Mineral Resources Rent Tax (MRRT), it has not dissuaded the miner from pursuing this growth, but it may deter others.
”For companies with a diversified portfolio, I think it is good to stay here.”
“But if you are going to target one country that is in this kind of constant change in policy and regulation, it can force you to look elsewhere, I think there is still some room to negotiate,” Amaral said.