Brazilian miner Vale recorded total iron ore fines production at 89.42 million tonnes (mn t) in Q3CY’21, up by 18% as against 75.7 mn t in Q2CY’21. The q-o-q growth is attributed to the gradual resumption of halted operations at Fabrica, seasonal improvement of weather-related conditions in the Northern System and improved performance related to better run-of-mine (ROM) availability.
On a yearly basis, the output increased by 1% as compared to 88.7 mn t in Q3CY’20.
Total pellet output was recorded at 8.3 mn t in Q3CY’21, up by 4% q-o-q as compared to 8 mn t in line with Q2CY’21. Quarterly results variations are mostly explained by lower maintenance activities in Sao Luis, higher pellet feed availability from Itabira and lower pellet production in Vargem Grande.
Iron ore, pellet sales up
Iron ore and pellets sales picked up marginal 1% to 75.9 mn t in Q3CY’21, as against 74.9 mn t in Q2CY’21 of which iron ore sales comprised 67.8 mn t (up 1% q-o-q) and pellet sales were at 8 mn t (up 5% q-o-q).
Key updates
- Vale started to commission the long-distance conveyor belt segment close to Vargem Grande dam in October as an additional step on the capacity resumption plan. At the end of commissioning, an increase of 6 mtpy is expected in the production capacity of the Vargem Grande site.
- Vale keeps iron ore production guidance intact at 315-335 mn t for CY’21, but this is expected to fall within the lower half of its target range.
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