Chinese demand drive’s Vale’s Q2 iron ore production up 12%

Vale produced 75.7 million tons of iron ore in the second quarter, up 12% from the same period last year, the mining company announced in a report on Monday, still maintaining its extraction target for the year.

On the base metals side, however, Vale said it will revise its production targets for the year, given uncertainties related to strikes in Canada and the safety and maintenance process in Sossego and Salobo.

Iron ore sales rose 23.1% backed by strong Chinese demand for steel, which reached record levels this year.

The company also benefitted from a premium of more than 8 dollars per ton for the product.

“Considering the iron ore mining plan and the implementation of new initiatives, Vale reached a production capacity of 330 million tons per year, mainly due to Serra Leste having reached its full capacity”, stated the company, in its production report.

According to Vale, the advance in production capacity could enable an average production output of 1 million tons per day in the second half, given the favorable seasonality of the weather conditions in the period.

Compared to the first quarter, production rose 11.3% as a result of higher volumes from Brucutu; the seasonal improvement of climatic conditions in Serra Norte; the strong output in Serra Leste; greater productivity in the Itabira Complex; and greater third-party purchases, among others.

Source: Money Times

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