Jul 21, 2020 Leave a message

Vale: Copper production decreased in the second quarter, iron ore and nickel production increased

Today Vale released its production and sales report for the second quarter of 2020. According to the report, the output of copper in the second quarter of 2020 was 84,500 tons, a decrease from previous quarters; the output of finished nickel in the second quarter reached 59,400 tons, and the output of iron ore fines was 67.6 million tons.


In the second quarter of 2020, the output of Vale’s iron ore fines was 67.6 million tons, of which the monthly output in June exceeded 25 million tons, which showed a strong increase compared with the output levels in April and May. The reason is that with the rainfall Decrease, the seasonal high yield period is coming. S11D's production operation rate reached 91 million tons per year in June, and it may increase in the second half of the year. The annual output is expected to be slightly higher than 85 million tons.


Vale's guideline output of iron ore fines in 2020 will remain unchanged at 310 million to 330 million tons, and it is assumed that the greatest possibility is to reach the lower limit of this range.


Vale’s 2020 pellet production guidance has been revised from 35 million to 40 million tons to 30 to 35 million tons, mainly due to: (1) The production adjustment reflects the concentration of pellets in the Itabira mining area. Supply situation; (2) The resumption of Vargem Grande pelletizing plant is postponed to 2021; (3) Market demand is relatively sluggish.


The output of finished nickel in the second quarter of 2020 reached 59,400 tons, mainly due to: (1) the strong performance of the refineries in the North Atlantic system; (2) the output of the Matsusaka plant in Japan and the Indonesian plant after regular maintenance in the first quarter However, the output of the Clydach plant in the United Kingdom decreased due to the reduction of raw materials from the Indonesian mining area; (3) the output of the New Caledonia plant increased. In the first half of 2020, excluding the nickel production of the New Caledonia plant reached 94,200 tons, the annual guidance output of 180,000 to 195,000 tons should be reached.


Copper production in the second quarter of 2020 was 84,500 tons, a decrease from previous quarters, mainly due to the impact of the aforementioned new crown pneumonia epidemic. The copper output in the first half of 2020 is 179 thousand tons, and the guidance output of 360 thousand tons to 380 thousand tons will also be reached as planned for the whole year. With the end of the rainy season in Brazil and the resumption of production in Voisey's Bay, the South Atlantic System It is expected to achieve stronger operating results in the second half of the year.

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