Vale’s iron ore production falls 33.8%

Vale SA reported today (07/22) that it’s iron ore production in the second quarter of 2019 fell almost 34% over last year since many of its main dams were totally or partially closed after the accident with the dam of Brumadinho in January.

The fall to 64.06m tons was also due to the closure of Brucutu, its largest mine in the state of Minas Gerais, due to the risk of accidents, during most of the quarter.

Unusual weather conditions in the Northern System in April and early May 2019 also negatively affected the company’s results.

The world’s largest iron ore exporter also said quarterly sales of its main raw material fell 15.5% to 61.95m tons.

Vale’s pellet production was 9.1Mt, down 25.5% and 29.3% lower than in the first quarter of 2019 and the second quarter of 2018, respectively, mainly due to the total stoppage of the pelletizing plants of the Southern System during the quarter, because of the heavy rains in the North and Southeast System, as well as the maintenance in the vicinity of the Tubarão plants.

According to the company, Vale’s iron ore fines production showed substantial improvement at the end of the second quarter of 2019 with the increase in shipments in the North System and the resumption of Brucutu operations, but the combined effect of the two events will be considerably noticed in the second half of 2019.

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