Vale’s iron ore production and sales decline in 2019

Tuesday, 11 February 2020 17:41:54 (GMT+3)   |   Istanbul

Brazilian iron ore and mining company Vale has announced its operational results for the last quarter and the whole of 2019. In the fourth quarter of last year, Vale’s iron ore production amounted to 78.3 million mt, falling by 9.6 percent as compared to the previous quarter and down 22.4 percent on year-on-year basis. Meanwhile, in 2019 the company’s iron ore production declined by 21.5 percent year on year to 301.97 million mt.

In the last quarter of 2019, Vale's pellet production amounted to 9.42 million mt, down 40.5 percent compared to the same quarter of 2018 and down 15.4 percent compared to the third quarter. In 2019, the company’s pellet output declined by 24.4 percent to 41.79 million mt.

According to the company statement, the operational disruption which followed the Dam I rupture, with interdictions at the Vargem Grande, Fábrica, Brucutu, Timbopeba and Alegria operations, together with the stronger than usual weather-related seasonality in the first quarter last year caused major impacts on production.

In the last quarter of the year, Vale’s iron ore sales decreased by 3.2 percent to 77.91 million mt, while in 2019 iron ore sales declined by 12.8 percent to 269.31 million mt, both year on year.

According to its statement, as for the plan to resume approximately 40 million mt per year of halted capacity, enabling an additional 15 million mt and 25 million mt of production in 2020 and 2021, respectively, Vale is making progress with discussions with the National Mining Agency, the Minas Gerais State Public Prosecutor's Office and the external audit firms to start site tests and gradually resume production. S11D is expected to contribute to the total 2020 production volume with 90 million tons of high-quality, low-cost iron ore. Regarding the Northern and Eastern ranges, Vale expects to produce around 120 million mt in 2020, mainly due to impacts associated with the ramp up of the Morro 1 mining section.

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