Vale Q3 Iron Ore Production Up 31 Percent from Q2; Year-to-date Down 3.5 Percent

RIO DE JANEIRO, BRAZIL – Vale (VALE3) released its Q3 2020 production report on Monday, October 19th, posting a 31.2 percent increase based on quarterly comparisons in iron ore production to 88.68 million tons.

Compared to the same period in 2019, the mining company had an increase of only 2.3 percent in the commodity’s production. In turn, over the first nine months in 2020, there was a 3.5 percent drop.

According to Vale, a record production of 58.9 million tons was reached in one quarter, in the North System, with August as the best month, with 19.7 million tons.

“The overall performance of the South and Southeast Systems has improved in all operational units, notably in the Itabira Complex and Timbopeba site (operating for a full quarter, due to the June restart), and with the restart of operations at the Fazendão mine in July,” explained the company.

As for sales, Vale posted a 20.4 percent increase in the iron ore segment, in the quarterly comparison, reaching 65.77 million metric tons. However, there was an 11.2 percent drop in the annual comparison.

In its release, the mining company stated that it is progressing in its stabilization plan and “delivered a strong iron ore production” in Q3.

“The Nickel and Copper industry was able to restore productivity to a robust start in 4Q20, after normalizing the maintenance routine in the quarter,” explained the company.

Finally, Vale said the results were achieved due to “the workforce’s commitment to the company’s safety standards and strict operational discipline, following the continuous implementation of the Vale Production System (VPS)”.

Other metals

Vale pellet production climbed by 21.1 percent in Q3 over the period between April and June, reaching 8.56 million tons. However, there was a 23,1 percent drop in the annual comparison.

According to the mining company, the improvement over the preceding quarter was the result of “greater availability of pellet feed, particularly from the Itabira Complex, and the improved operational performance of pellet plants”.

Copper production reached 87,600 tons between July and September this year, a slight 3.7 percent improvement over the preceding quarter, but an 11.2 percent drop over the same period in 2019.

The year improvement was the result of the restart of operations in Voisey’s Bay, after a maintenance period in Q2, as well as of a stronger performance in South Atlantic operations. According to the company, the region’s operations are expected to perform better in Q4, with the reduction of Covid-19-related impacts on operations and maintenance routines.

Source: InfoMoney