Vale Produces 78.3 Million Tons of Iron Ore in Q4 2019

RIO DE JANEIRO, BRAZIL – Vale (VALE3) released its production report for the fourth quarter of 2019, with a 9.7 percent decline in the quarter-on-quarter comparison in iron ore production, to 78.3 million metric tons. Compared to the same quarter of 2018, the decline was 21.5 percent. Production for the year was 301.972 million metric tons, down 21.5 percent from 2018.

“The operational interruption that followed the rupture of dam I, with interdictions in the operations of Vargem Grande, Fábrica, Brucutu, Timbopeba, and Alegria, along with the heavier than typical weather season in the first semester, caused major impacts on production, partially offset by: (a) ramp-up of S11D; (b) reduction of inventories; (c) gradual resumption of operations in Vargem Grande, Brucutu and Alegria”, pointed out the company in a statement.

Sales of iron ore in Q4 were 77.9 million metric tons, an increase of 5.2 percent compared to the third quarter of last year and a drop of 3.2 percent compared to the last three months of 2018. Sales for the year fell by 12.8 percent, from 308.981 million to 269.306 million metric tons.

Sales of iron ore fine metalss and pellets totaled 312.5 million tons in 2019, in line with the annual prediction of 307-312 million tons.

The company further reported that, despite the combined impacts on production, Vale’s projection for iron ore fine minerals production in 2020 remains at 340-355 million tons. “Production volumes will mainly rely on the granting of external authorizations to resume interrupted production, while the achievement of the highest possible level of production continues, depending on a number of advantages that are being exploited,” it assessed.

Source: InfoMoney

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