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Vale Announces Production and Sales Results for 2019

Mining News - Published on Wed, 12 Feb 2020

Image Source: steelguru.com
Vale ended 2019, the most challenging year of its history, with the steady commitment to resume and stabilize production, while implementing the highest safety standards across its operations. Sales volumes of iron ore fines and pellets reached 312.5 million tonnes in 2019, in line with the annual guidance of 307-312 million tonnes. Vale's iron ore fines production totalled 302.0 million tonnes, 21.5% lower than in 2018, while pellets production was 41.8 million tonnes t in 2019, 24.4% lower than in 2018. 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 1H19, caused major impacts in production, partly offset by (i) the S11D ramp-up, (ii) inventory drawdowns, and (iii) the gradual resumption of the Vargem Grande, Brucutu and Alegria operations.

Vale reinforces its commitment to resume and stabilize production under the highest safety conditions. In 2020, production from the Alegria mine, restored in November 2019, will contribute with approximately 8 million tonnes t adding approximately 5 million tonnes production in relation to 2019. The logistics at the Vargem Grande Complex have been freed up, following the resumption of operations at the TFA Rail Terminal in January, which will enable rail shipments of approximately 7 million tonnes of stranded product inventory.

As for the plan to resume approximately 40 million tonnes of halted capacity, enabling additional 15 million tonnes and 25 million tonnes 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 tonnes of high-quality, low-cost iron ore. Regarding Northern and Eastern ranges, Vale expects to produce around 120 million tonnes in 2020, mainly due to impacts associated with the ramp up of Morro 1 mining section.

Despite the combined impacts on production, Vale's iron ore fines production guidance in 2020 is kept at 340-355 million tonnes. Production volumes will depend mostly on the granting of external authorizations to resume halted production, while the achievement of the higher end of production range continues to be possible depending on several upsides being explored. Due to the lower availability of pellet feed and to the abovementioned suspension of tailings disposal at Laranjeiras dam, the annual guidance for pellets production was revised to 44 million tonnes, while the iron ore fines production guidance for 1Q20 was revised to 63-68 million tonnes.

Production4Q193Q194Q18201920184Q19/3Q194Q19/4Q182019/2018
Iron ore178,34486,704100,988301,972384,638-96%-22 4%-21.5%
Pelets9,41511,13315,81241,79455,304-154%-40.5%-24.4%
Manganese Ore4504434951,5761,8321.7%-9.2%-139%
Coal1,8762,3103,1078,77011,605-188%-39 6%-24.4%
Nickel56751 46402080244 6103%-11.4%-15.0%
Copper90.3987109 8381.13955-85%-17 8%-3.6%
Cobalt (metric tons)1,1401,0091,4374,3765,09313.0%-20.7%-14.1%
Gold ('000 Oz Troy)13212213348047782%-0 8%0.6%
 


Sales4Q193Q194Q18201920184Q19/3Q194Q19/4Q182019/2018 |
Iron ore177,90774,03980,495269,306308,9815.2%-3.2%-12.8%
Pellets10,96611,07715,98743,19956,592-10%-31.4%-23.7%
Manganese Ore5701504421,0631,572280 0%28 9%-32.4%
Coal2,0422,2543,4338,78311,633-94%-405%-24.5%
Nickel47.050959.6205.7236.4-7.7%-21.1*-13.0%
Copper87.8920104.13652378.9-4 6%-15.7*-3.6%
 

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Posted By : Rabi Wangkhem on Wed, 12 Feb 2020
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