Vale CEO says mining must become ‘essential to society’ to unlock full value

Vale CEO Gustavo Pimenta told the PDAC 2026 convention the mining sector is in one of its best periods in recent history as structural mineral demand rises (AI and energy transition), but argued the industry must improve its “social license” to unlock sustained, long-duration investment capital. His core message: beyond supply/demand and long-term price expectations, mining’s valuation re-rating depends on broader societal acceptance and demonstrably safer, lower-impact operations. The piece highlights a notable equity-market signal for precious metals: after years of lagging, gold miners have been outperforming bullion. Kitco cites the VanEck Gold Miners ETF (GDX) up more than 200% since January 2025 versus gold up about 120% over the same period—suggesting expanding margins/operational leverage and/or a re-rating in mining equities. For PM traders, the implication is that the bid in miners may have legs if ESG/operational-risk narratives continue to improve alongside supportive bullion pricing—potentially keeping beta in miners elevated versus spot. Key risks/catalysts include: any reversal in bullion momentum, renewed focus on tailings/safety following legacy incidents (Vale’s Brumadinho remains a reputational overhang), and whether miners can credibly execute on capex discipline plus lower-impact production (autonomy, reduced land/water footprint, “zero tailings” via dry stacking).