According to the financial report issued by leading Brazilian miner Vale, in the first quarter of the current year the company's net profit reached $6.83 billion, over quadruple the figure of $1.6 billion for the corresponding quarter in 2010 and up 15 percent compared to the previous quarter. The net profit in Q1 constituted a new record for the group, much higher than the $5.75 billion anticipated by analysts.
Vale stated that the strong rise in its net profit was mainly attributable to the soaring iron ore price, which offset high energy and labor costs in Brazil. Vale's operating revenues for the first quarter surged by 98 percent to US$13.55 billion, from US$6.85 billion in the same quarter last year.
However, impacted by storms in Brazil as well as the New Year holiday in China, Vale's iron ore sales in the first quarter dropped by 15.5 percent quarter on quarter to 68.05 million mt.