Vale achieves highest iron ore production since 2018

Vale announced on Tuesday (15) that it reached the highest level of iron ore production between July and September since the fourth quarter of 2018.

In the production report released Tuesday (15) after the market closed, the company stated that iron ore production in the third quarter increased by 5.5% compared to the same period in 2023, reaching 90.971 million tonnes.

According to the mining company, the increased ore production was driven by better performance at S11D, Itabira, and Brucutu.

In September, Vale announced an increased production forecast for 2024; the target, previously set at 310 million to 320 million tonnes, is now 323 million to 330 million tonnes for the year.

Pellet production in the quarter ended in September rose 12.9% year-on-year, totaling 10.4 million tonnes.

The company’s nickel production rose 11.9% year-on-year, reaching 47.1 thousand tonnes, and copper production increased 5.3% year-on-year, reaching 85.9 thousand tonnes. In nickel, the performance of the Sudbury mines in Canada led to a 20% increase in mill processing compared to the previous year, according to Vale.

Sales

Vale’s iron ore fines sales in the third quarter totaled 69.344 million tonnes, a decrease of 0.5% compared to the same period the previous year when 69.714 million tonnes were sold. However, pellet sales increased by 17.8% in the same comparison, reaching 10.143 million tonnes.

Vale also sold 2.351 million tonnes of run-of-mine ore, 5.3% more than in the third quarter of the previous year. Combining all three products, the company’s iron ore sales between July and September totaled 81.838 million tonnes, an increase of 1.6% over the third quarter of 2023.

The company’s nickel sales in the third quarter of 2024 were 40,700 tonnes, an increase of 3.8% compared to the same period the previous year.

In copper, sales totaled 75,200 tonnes in the third quarter, an increase of 1.9% compared to the third quarter of 2023.

In terms of prices, Vale closed the third quarter with an average realized price for iron ore fines sales of $90.6 per tonne, a decrease of 13.8% compared to the same period the previous year when the average value was $105.1 per tonne. For pellets, the average price in the same period was $148.1 per tonne, a decrease of 8.1% compared to the third quarter of the previous year when the value was $161.2 per tonne.

The company’s production and sales report shows that the average realized price by the mining company for copper sales was $9,016 per tonne in the third quarter, an increase of 16.6% compared to the same period the previous year when the price was $7,731 per tonne.

For nickel, the average realized price in the third quarter was $17,012 per tonne, a decrease of 19.9% compared to the third quarter of the previous year when the average value was $21,237 per tonne.

By Kariny Leal, Rafael Rosas, Valor

Source: Valor International

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