Brazil’s big iron ore miner and exporter, Vale continues to recover from the impact of the January 25 mine dam wall disaster that killed or left missing nearly 300 people.
The company said on Monday that third-quarter iron ore production was up from the June quarter but still down 17.4% from a year ago.
The company said it produced 86.704 million tonnes in the July-September period, up more-than two-thirds from the second quarter as operations resumed at Brucutu, its largest mine in the southeastern state of Minas Gerais, and at part of its Vargem Grande complex.
Vale’s quarterly sales were down 11.8% from a year ago to 74.039 million tonnes.
Despite the improvement, Vale left unchanged its previous full-year iron ore and pellets sales outlook forecast at between 307 million to 332 million tonnes.
The output and sales figures came a little over a week before Vale’s quarterly results. It also came a day before Rio Tinto (its third quarter) and BHP (its first quarter) release their production data for the three months to the end of September.
In a securities filing, the world’s top iron ore exporter added it expects to lift production capacity to around 50 million tonnes at its Vargem Grande complex by the end of 2021.
Vale said iron ore pellet production totalled 11.133 million tonnes in the third quarter, still down 19.8% from a year ago.
Physical iron ore prices dropped on Monday, October 14 following losses in the derivatives markets.
Vale’s news help send iron ore prices lower on Monday.
The MB Fastmarkets iron ore indices 62% Fe fines, fell 2.4% to $US91.49 a tonne, down $US2.27 per tonne while the price of 62% Fe Pilbara Blend fines dipped 22 cents to $US92.03 a tonne.
The price of 65% Fe Brazil-origin fines, was down around 2.4% or $US2/30 a tonne at $US97 per tonne. That is the typical fines product from Vale.
