Wedoany.com Report-Dec.3, Vale SA and Glencore Plc have agreed to jointly study the development of a major copper project in Canada's Sudbury basin, Ontario, the companies announced on Tuesday.

The old Copper Cliff nickel mine.

The proposed initiative combines adjacent deposits owned by Vale Base Metals and Glencore, with estimated development costs ranging from $1.6 billion to $2 billion. The integrated operation is projected to produce approximately 880,000 metric tons of copper over a 21-year mine life, alongside nickel, cobalt, gold, and other associated minerals.

The partnership will initially focus on detailed engineering, permitting, and community consultation throughout 2026, with a final investment decision scheduled for the first half of 2027. Upon approval, the two companies plan to establish an equal-ownership joint venture.

The collaboration would involve deepening Glencore's existing Nickel Rim South shaft and constructing new underground connections to access Vale's nearby copper-rich resources, creating a single, more efficient mining complex.

The agreement marks a practical step toward expanding copper supply at a time when global demand is rising rapidly, driven by electrification, renewable energy infrastructure, and data center expansion for artificial intelligence applications.

For Vale, the project supports its target to double annual base metals production to around 700,000 tons by 2035. For Glencore, it offers a route to maintain and grow copper output from its Canadian operations.

The Sudbury basin remains one of the world's premier mining districts for both copper and nickel, and the proposed integration demonstrates how established producers can combine adjacent assets to reduce costs, extend mine life, and maximize resource recovery in mature regions.

Work in the coming year will refine technical plans and ensure the project meets environmental and operational standards before proceeding to full development.