[Ferro-Alloys.com] Brazilian miner Vale (NYSE: VALE) yesterday announced the successful completion of the throughput test for the first phase of the Salobo III project, with the Salobo complex exceeding an average of 32 Mtpa over a 90-day period.

The Salobo copper mine in Brazil historically had a mill throughput capacity of 24 Mtpa. In 2019, Vale started construction on the US$1.1 billion Salobo III expansion project.

Combined with plants I and II, throughput capacity now exceeds 32 Mtpa, and is currently ramping up to reach full capacity of 36 Mtpa in the 4Q24.

"This achievement is a significant milestone under the Salobo streaming agreement with Wheaton Precious Metals," Vale said in a media release.

Under the terms of the agreement with Wheaton, Salobo will receive US$370 million for completion of the first phase of the Salobo III expansion project.

The remaining balance of the expansion payment will be triggered once Vale expands actual throughput above 35 Mtpa for a period of 90 days.

In addition, Wheaton will be required to make annual payments of between US$5.1 million to US$8.5 million for a 10-year period should the Salobo complex continues to produce within certain copper grades.

Vale is the largest producer of iron ore, pellets and nickel. The company also has operations in manganese, ferroalloys, copper, gold, silver, and cobalt.

Wheaton Precious Metals (TSX: WPM) (NYSE: WPM) is the world's premier precious metals streaming company with the highest-quality portfolio of long-life, low-cost assets.

• [Editor:tianyawei]