News Global Market Vale 02 February 2023
The production of iron ore pellets increased by 1% year-on-year
Brazil’s largest mining company Vale reduced its iron ore production by 2% in 2022 compared to the same period in 2021 – to 308 million tons. This is stated in the report on the company’s website.
“The decrease in iron ore production was mainly due to the delay in the licensing of the Serra Norte mine, as well as the productivity of the S11D mines in the north of the country. This was partially offset by increased production at the Vargem Grande mine, Brucutu and increased purchases from third parties in the Southeast,” the statement said.
In 2022, the production of iron ore pellets increased by 1% compared to 2021 – up to 32 million tons. In the fourth quarter of 2022, 81.7 million tons of iron ore and 9.07 million tons of pellets were produced. On an annual basis, this is 1% and 8.9% less, respectively.
Sales of iron ore for 2022 decreased by 3.8% year-on-year – to 260.7 million tons. At the same time, shipments of iron ore pellets in this period increased by 2.7% compared to 2021 – up to 33.2 million tons t.
For the fourth quarter of 2022, sales of iron ore amounted to 81.2 million tons, decreasing by 0.7% compared to October-December 2021. Shipments of pellets during this period decreased by 15.1% y/y – to 8.79 million tons.
In 2023, the company plans to extract 310-320 million tons of iron ore. The production of pellets is planned at the level of 36-40 million tons.
In 2022, Vale increased nickel output by 6.4% year-on-year – up to 179.1 thousand tons. The volume of nickel sales in this period also decreased by 0.5% – to 180.8 thousand tons. Copper production fell by 14.7% compared to 2021 – to 253.1 thousand tons, while its sales fell by 14.3% year-on-year – to 243.9 thousand tons.
Vale is one of the three largest mining companies in the world. In 2021, the company increased production of iron ore by 5.1% compared to 2020 – up to 315.6 million tons. Sales of iron ore increased by 8.9% y/y – up to 277.5 million tons.
In 2022, Vale planned to start producing iron ore at the level of 310-320 million tons and produce 34-38 million tons of pellets.