Despite the recent downturns in the global iron ore market, Brazil pellet producer Samarco expects to keep up its revenue levels in 2016, according to a media report.
The company, which is owned by Vale and BHP Billiton, said it doesn’t expect to increase output or see significant gains in terms of prices for the year to come.
A Samarco executive told local media that the company has its output limited to the company’s installed capacity, which is 30.5 million mt/year.
Eduardo Bahia, Samarco’s finance and supply director, said the company was able to save BRL 1 billion with in-company operational excellence programs. The executive also added Samarco doesn’t expect to cut jobs, as seen in the nation’s steel and mining industry.
According to a recent filing at the Diario Oficial de Minas Gerais, Minas Gerais’ official gazette, Samarco said its net profit in 2014 was BRL 2.8 billion, up from BRL 2.7 billion and BRL 2.6 billion in 2013 and 2012, respectively.
The company’s net revenue in 2014 totaled BRL 7.5 billion. In 2013 and 2012 net revenue was BRL 7.2 billion and BRL 6.5 billion, respectively.