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Brazil’s Vale reports decrease in iron ore production in Q4

Brazilian miner Vale SA VALE3.SAon Thursday reported a 2.4% decrease in iron ore production in the fourth quarter year-on-year.

According to a securities filing, the company reached quarterly iron ore production of 82.47 million tonnes, below the same period from the previous year and down 7.8% from the third quarter.

Total iron ore production for 2021 were 315.61 million tonnes, or up 5.1% on a yearly basis, falling within the lower end of its target range, which was set at between 315 and 335 million tonnes.

In October, the company said it would slow down production of low-margin iron ore in the fourth quarter by about 4 million tonnes due to low prices.

The company also attributed the output slowdown in the fourth quarter to higher rainfall levels that restricted mining in deeper pits in Serra Norte, which is located in Vale’s northern system. Production in the system fell 5.7% from the previous year.

Nickel production for the quarter was 48,000 tonnes, down 5.5% from the year before.

The company also posted a 17.1% decrease in quarterly copper production to 77,500 tonnes from the same period of the previous year.

Vale has confirmed that all operations affected by heavy rains in the Brazilian state of Minas Gerais in early January have resumed their regular activities, although the stoppages impact on iron ore production was approximately 2 million tonnes.
Source: Reuters (Reporting by Peter Frontini and Nayara Figueiredo Editing by Alistair Bell and Diane Craft)

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