World’s largest iron ore miner- Vale yesterday lowered iron ore and pellet sales guidance to 307-312 MnT for 2019 amid dealing with the aftermath of the Brumadinho dam disaster of Jan’19, against its previous guidannce of 307-332 MnT.
As per the miner- the outlook change is due to “greater visibility on sales expected for the fourth quarter, which should be between 83 MnT and 88 MnT.” Also, the miner expects Q1CY20 production and sales to range between 70 – 75 MnT, due to seasonality, the gradual and safe return of operations and in line with margin over volume strategy.
Towards early Nov’19, Vale informed that it has received authorization from the National Mining Agency to resume the operations of the Alegria Mine operation that has been halted since Mar’19. Authorization allows the restart of approximately 8 MnTPA of the 50 MnTPA of previously halted production. But even with that restoration, mines that had accounted for 42 MnT of production remain offline or are operating below peak capacity.
Vale in its quarterly reports shared it expects about an additional production of 30 MnT for 2020 from halted operations related to Brumadinho tragedy. For 2021, the miner expects to add remaining about 25 MnT, mainly coming from wet processing operations at Timbopeba and Vargem Grande Complex.
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