Brazilian miner Vale recorded total iron ore production at 70.83 million tonnes (mnt) in Q1CY’24, up by 6% y-o-y as against 66.77 mnt in Q1CY’23.
The y-o-y upsurge is due to a rise output in the Southern System which consists of iron deposits located in the iron quadrangle located in the south central part of the state of Minas Gerais.
Furthermore, the S11D mine, which is a large surface mine owned and operated by Vale in the Carajas region of Brazil, achieved the highest Q1 output since 2020, with continued asset reliability initiatives and higher third party purchases as well as solid performance at Brucutu and Timbopeba plants.
On a quarterly basis, output decreased by 21% compared to 89.39 mnt in Q4CY’23.
Pellet output rise 2% y-o-y: Pellet output was recorded at 8.46 mnt in Q1CY’24, up 1.8% y-o-y compared to 8.31 mnt in Q1CY’23. On a quarterly basis, output was down by 14% as against 9.85 mnt in Q4CY’23. Pellet production increased because of higher pellet output in the Tubarao and Vargem Grande plants along with availability of pellet feed from the Southern system mines.
Iron ore sales rise y-o-y: Vale recorded iron ore sales at 52.54 mnt in Q1CY’24 (January-March 2024), significantly improved by 14.6% y-o-y as against 45.86 mnt in Q1CY’23 (January-March 2023). However, iron ore sales decreased sharply by 32.5% q-o-q compared to 77.88 mnt in Q4CY’23. Sales increased because of the absence of port loading restrictions that negatively impacted the Ponta da Madeira Port in Q1CY’23.
Pellet sales up y-o-y: Pellet sales rose by 13% y-o-y to 9.22 mnt in Q1CY’24 as against 8.13 mnt in Q1CY’23. However, sales fell by 10% q-o-q against 10.28 mnt in Q4CY’23.
CY’24 guidance
Vale’s iron ore production guidance remained intact at 310-320 mnt for CY’24.
Pellets production guidance for this year has been set at 38-42 mnt for CY’24.