Vale reduced iron ore production by 4.5% y/y in Q1

In the first quarter of 2025, Brazilian mining company Vale reduced iron ore production by 4.5% year-on-year and 20.7% quarter-on-quarter to 67.7 million tons. The company said in a statement.

As noted, production volumes were affected, in particular, by weather conditions.

In January-March this year, pellet production amounted to 7.2 million tons, down 15.2% year-on-year.

In the first quarter, iron ore sales increased by 3.6% y/y – to 66.1 million tons, thanks to the flexibility of Vale’s supply chain and the use of advanced reserves.

Vale’s production forecast for 2025 remained unchanged at 325-335 million tons, as well as pellet production, which is expected to reach 38-42 million tons.

As a reminder, in 2024, Vale reached its highest level of iron ore production since 2018 – 327.67 million tons, up 2% year-on-year. Pellets production increased by 1.2% y/y – to 36.89 million tons. At the same time, in the fourth quarter, mining decreased by 4.6% y/y – to 85.28 million tons, while pellet production decreased by 6.9% y/y – to 9.17 million tons.

As GMK Center reported earlier, Vale is investing R$70 billion ($12.2 billion) to expand its iron ore and copper mining operations at the Carajas complex in northern Brazil. The investments will be made until 2030. Carajas in the state of Pará is the company’s largest iron ore mining complex.