Vale announces increase in Iron Ore Production

Brazilian mining company Vale SA reported an increase in iron ore production in the third quarter on Monday and forecast a further increase in production in the fourth quarter for some units as a number of mines ramp up or start up production. In a securities log, the company said it produced 88.7 million tons of iron ore in the quarter, 31.2% more than the previous quarter and 2.3% more than the same period last year, reflecting increased production at its facilities Itabira and Timbopeba and the Fazendao mine, all in southern Brazil.

Production at Itabira was temporarily suspended in the second quarter due to a coronavirus outbreak among workers, while Itabira and Fazendao were hampered by regulatory issues. Although the company succeeded in increasing iron ore production, there is still a long way to go before reaching the annual target of 310 to 330 million tons. By the third quarter it had produced 216 million tons.

Vale said in Monday's statement that 6 million tons of iron ore production would go on stream at its Serra Leste mine in northern Brazil in the fourth quarter. He added that some logistical issues in the iron ore pellet and fine ore market were resolved in September, which would allow for better timing between production and sales in this segment in the fourth quarter.

Nickel production was 47,100 tons, according to Vale, down 20.7% from the previous quarter and 8.4% from the same period in 2019, partly due to maintenance. The company said nickel and copper production increased as early as the fourth quarter as maintenance neared the end. According to the company, production of the metal in Voisey's Bay and Onca Puma should also improve thanks to fewer work interruptions in connection with coronaviruses and the completion of maintenance projects.