Vale announced on Wednesday (10) that it plans to invest less in 2025 than initially projected. The mining giant expects to spend between $5.4 billion and $5.7 billion this year, 8.47% and 3.38% below its original estimate of $5.9 billion. The company attributed the cut to greater capital efficiency.

Following the announcement, Vale’s chief executive, Gustavo Pimenta, said the reduction does not mean the company will forego strategic projects. “The decrease is due to more efficient capital allocation, prioritizing projects with higher returns and lower capital intensity,” he told reporters after an event on COP30 in São Paulo.

According to Mr. Pimenta, the revised forecast reflects years of work to streamline investments. “This is not a shift in strategy. Our growth agenda remains, particularly in copper,” he said, adding that Vale has been deploying new technologies to improve efficiency. “The cut results from a deep review of expenses and investments to ensure resilience under any market conditions.”

BTG Pactual analysts Leonardo Correa and Marcelo Arazi wrote in a client note that the lower spending reflects cost optimization and efficiency programs, with no changes to project scopes. Vale will announce its 2026 investment target at “Vale Day,” an investor event in London on December 2, which should also come in below $6 billion.

Vale’s current investment levels are well below those of the past, when it financed mega-projects such as S11D in Pará, which alone cost about $15 billion. The company has since adopted capital discipline as a core principle to protect against volatility in the iron ore market, its core business.