Brazil’s Vale iron ore production drops 6% in the first quarter 2022

RIO DE JANEIRO, BRAZIL – Rio de Janeiro-based Vale announced Tuesday (19) that it ended the first quarter with production of 63.9 million tons of iron ore fines, down 4.1 million tons from the same period last year. This represents a decrease of 6% year-on-year and 22.5% compared to Q4 2021.

In addition, Vale highlighted that the company’s iron ore business delivered a solid premium of US$9 per tonne in 1Q22, the highest level since 2Q19, “reflecting its high-quality portfolio and the close relationship between supply and demand for high-grade, low-impact ore in the global market.”

According to the report, Vale maintained its guidance for iron ore, pellet, nickel, and copper production. The mining company estimates production of 320-335 thousand tons (Mt) of ore this year, while for pellets it forecasts 34-38 Mt.

For nickel, the company stated that the forecast will reach 175-190 kt in the consolidated year 2022. For copper, the forecasts are 330-335 kt in 2022.