Vale total iron ore and pellet sales recorded at 312.5 MnT in CY19, in line with the laid guidance of 307-312 MnT. The sales dropped down 15% as compared to 365.5 MnT in CY18. Sales of iron ore were recorded at 269.3 MnT (down 13% Y-o-Y) and that of pellets was recorded at 43.2 MnT (down 24% Y-o-Y).
Vale total iron ore and pellet production down 22% in CY19
Vale total iron ore and pellet production depicted fall by 22% to 343.8 MnT in CY19 against 439.9 MnT in CY18.
The iron ore fines output witnessed drop to 302 MnT (down 22%) and pellet production fell 24% to 41.8 MnT for CY19. The operational disruption caused amid Dam disaster at Vale towards early CY19 and was followed by closure at numerous mines and dams. This was partly offset by S11D ramp up, inventory drawdowns, gradual resumption at Vargem, Grande and Brucutu and Algeria operations.
The total iron ore production in Q4 CY19 witnessed at 78.3 MnT, down 10% as a result of unscheduled maintenance stoppages carried out at Northern range’s crushers and beneficiation plant, and also due to the suspension of tailings disposal at the Itabiruçu and Laranjeiras dams. The total pellet output fell 15% on a quarterly basis to 9.4 MnT in Q4 CY19.
Sales volume contributed 87% of High grade product
Vale’s share of premium products (pellets, Carajás, BRBF, pellet feed and sinter feed low alumina) for Q4CY19 marked at 87% in Q4 CY19.
In Q4 CY19, Vale’s product portfolio Fe content reached 64.2%, alumina 1.3% and silica 3.5%.
Pellet guidance lowered for CY20:
–Vale iron ore fines production guidance for CY20 set at 340 MnT- 355 MnT. However, production volumes will depend mostly on the granting of external authorizations to resume halted production.
— Vale iron ore fines production guidance for Q1 CY20 revised to 63-68 MnT.
–Vale reviewed its pellet production guidance to 44 MnT for CY20.
Key Updates:
—Vale expects to receive the necessary authorization from the MPMG to restart the Timbopeba site in Q1CY20.
—The Fábrica operation is expected to be resumed in Q2 CY20.
—The Vargem Grande pellet plant is expected to be resumed in Q3 CY20.
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