Vale increased iron ore production by 7% y/y in Q1

Brazilian mining company Vale increased its iron ore production by 6% in January-March 2024 compared to the same period in 2023, to 70.8 million tons. This is stated in the report on the company’s website.

«The increase in production was achieved due to improved operating performance of the S11D division, as well as continued asset reliability initiatives and increased purchases from third parties,» the statement said.

Pellet production for the period increased by 2% y/y – to 8.5 million tons. Sales of iron ore reached 63.8 million tons, up 15% compared to the same period in 2023. The average realized price of iron ore decreased by 7.3% y/y, while pellets increased by 5.8% y/y.

Compared to the fourth quarter of 2023, in the first quarter of this year, ore production decreased by 20.8% and pellet production by 14%. Sales of iron ore decreased by 32.5% and pellets by 10.3%.

Copper production amounted to 81.9 kt, up 22% y/y, and nickel production was 39.5 kt (-4% y/y).

In 2024, the company plans to mine 310-320 million tons of ore, while pellet production is expected to reach 38-42 million tons.

In 2023, Vale increased its iron ore production by 4.3% year-on-year to 321.15 million tons. Last year, pellet production increased by 13.5% y/y – to 36.5 million tons.

Sales of iron ore 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.