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Vale Announces Production Report for Q3 of 2019

Mining News - Published on Tue, 15 Oct 2019

Image Source: nasdaq.com
Vale iron ore fines production and sales had a significant increase in 3Q19, as a result of the continuous progress in the resumption of operations in the Southern and Southeastern Systems and also due to the strong operational performance and shipments normalization in the Northern System. Iron ore fines production reached 86.7 million tonnes in 3Q19, 35.4% higher than 2Q19. The resumption of Brucutu operations and the partial resumption of the dry processing operations at the Vargem Grande Complex, announced in June and July, respectively, contributed to this result. Vale expects to resume the remaining production of approximately 50 million tonnes by 2021, as several milestones were achieved and others are ongoing, including the approval of trigger tests on the mines to resume dry processing operations and the authorization of trigger tests at the TFA Rail Terminal (Terminal Ferroviario de Andaime), an important step toward debottlenecking the Vargem Grande Complex logistics. The Northern System showed strong operational performance with a production volume of 55.4 million tonnes in 3Q19, 33.3% higher than 2Q19 and 2.7% higher than 3Q18, including S11D's production record of 20.4 million tonnes, following its successful ramp-up. Vale expects to produce 90 Mt in S11D in 2020.

Vale's pellet production amounted to 11.1 million tonnes in 3Q19, 22.7% higher than 2Q19, mainly due to higher productivity from pellet plants after a maintenance period in 2Q19 and to the resumption of Brucutu operations, which increased the quality of pellet feed supplied to Southeastern System plants. Aligned with the margin over volume strategy and to meet prevailing market conditions, on September 26th, 2019, Vale revised its 2019 pellets production guidance to 43 Mt from the 45 million tonnes previously announced.

Iron ore fines and pellet sales volume amounted to 85.1 million tonnes in 3Q19, 20.2% higher than 2Q19 as a result of the above mentioned production resumption. Vale reaffirms its 2019 iron ore and pellets sales guidance of 307-332 million tons, with sales estimated to be around the midpoint of the range.

Finished nickel production reached 51.4 kt in 3Q19, 14.2% higher than in 2Q19, as operations gradually returned to regular rates over 3Q19, after scheduled and unscheduled maintenance at the refineries at in the North Atlantic and Asia. In Brazil, the judicial authorization to resume both mining and processing operations at Onca Puma, granted in September, was another milestone achieved towards production stability. As all refineries should operate at regular rates for the full fourth quarter and with Onca Puma's resumption, a stronger production upcoming quarter is expected.

Copper production reached 98.3 kt in 3Q19, in line with 2Q19 and 4.0% higher than 3Q18. Salobo continues to show strong operational performance, with an all-time monthly production record in July, totalling 50.9 kt in the quarter, 11.4% higher than 2Q19, mainly due to higher grades and high productivity at the mine and processing plants.

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Posted By : Rabi Wangkhem on Tue, 15 Oct 2019
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