Brazilian miner Vale recorded total iron ore fines production at 75.7 million tonnes (mn t) in Q2 CY’21, up 11% as against 68 mn t in Q1 CY’21. Production picked up due to several reasons. These include higher volumes from its Brucutu mine with the increase in high-silica sinter feed production, improvement in weather-related conditions in Serra Norte and a strong performance from the Serra Leste mine, higher productivity from the Itabira Complex and wet processing production in the Fabrica mine.
On a yearly basis, output increased by 12% as compared to 67.6 mn t in Q2CY’20.
Total pellet output was recorded at 8 mn t in Q2CY’21, up by 27% q-o-q as compared to 6.3 mn t in Q1CY’21 due to the seasonally higher pellet feed availability which was mainly directed to the Oman plants. There was also a ramp-up of the Vargem Grande pellet plant’s capacity.
Iron ore, pellet sales up
Iron ore and pellets sales picked up to 74.9 mn t in Q2CY’21, up 14% as against 65.6 mn t in Q1CY’21 of which iron ore sales comprised 67.2 mn t (up 13% q-o-q) and pellet sales were at 7.6 mn t (up 22% q-o-q).
Key updates
- Vale achieved a production capacity of 330 mntpa, mainly as a result of the Serra Leste mine achieving full capacity. This, if sustained, could allow for an average of 1 mn t per day production in H2CY’21.
- Vale keeps iron ore production guidance intact at 315-335 mn t for CY’21.
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