Vale increased iron ore production by 4.3% y/y in 2023

Brazil’s largest mining company Vale increased iron ore production by 4.3% year-on-year – to 321.15 million tons in 2023. This is stated in a report on the company’s website.

Production volumes exceeded the forecast of 315 million tons.

In the fourth quarter of 2023, Vale increased iron ore production by 10.6% y/y – to 89.4 million tons. In December, production volumes reached their highest monthly level since 2018.

Pellet production increased by 13.5% y/y – to 36.5 million tons last year. In the fourth quarter, this figure amounted to 9.85 million tons, which is 19.2% higher than in the same period in 2022. In addition, in the fourth quarter of last year, Vale began production of iron ore briquettes at Tubarão, with volumes expected to start in the first half of 2024.

Iron ore sales in 2023 decreased by 1.5% year-on-year – to 256.79 million tons. At the same time, shipments of iron ore pellets increased by 8.1% y/y – to 35.8 million tons in the period under review.

For the fourth quarter of 2023, iron ore sales amounted to 77.8 million tons, which is 4.1% less than in the same period last year. Shipments of pellets during this period increased by 17% y/y – to 10.28 million tons.

In 2024, the company plans to extract 310-320 million tons of iron ore, the production of pellets is forecast at the level of 38-42 million tons.

As GMK Center reported earlier, Vale in 2022 reduced production of iron ore by 2% compared to the same period in 2021 – to 308 million tons. The production of iron ore pellets in this period increased by 1% year-on-year – up to 32 million tons.

Also, Vale previously announced that in 2024 it expects to start construction of megahubs in the countries of the Middle East for the production of iron ore products with a low carbon content. The first of them will start working in 2027.