Brazil: Vale Lowers Iron Ore & Pellet Sales Guidance after Temporary Suspension at Itabira Complex

World's largest iron ore miner- Vale reduced iron ore and pellet sales guidance for the year 2019. The miner has revised the guidance to lower and midpoint of the range 307-332 MnT as against being towards the midpoint of the range, the miner announced yesterday.

The decision came after Vale's decision on temporary suspension of the tailings disposal at the Itabirucu dam at its Itabira Complex in Minas Gerais state. However, the dam's statement of Condition of Stability (DCE) issued on 30th Sep'19 remains valid. The dam's geotechnical characteristics will be studied by company retained by Vale within 30 days.

The impact of dam shutdown is expected to affect about 1.2 MnT of production for 2019.

Towards the end of last month, the miner had reduced pellet production guidance for the year. The miner reduced guidance to 43 MnT from previously 45 MnT.

Vale Q3 CY19 production up amid resumption at Brucutu mines

Vale witnessed rise in iron ore and pellet production for third quarter CY19 amid resumption at Brucutu mines and partial resumption of the dry processing operations at the Vargem Grande Complex. The total iron ore production for the quarter recorded at 97.8 MnT, up 34% as against 73.2 MnT in Q2 CY19. The miner recorded rise in total pellet output for the quarter Q3 CY19 at 11.1 MnT, up 23% compared to 9.1 MnT in Q2 CY19.

Vale total iron ore and pellet sales picked up 20% to 85.1 MnT as compared to 70.7 MnT a quarter ago due to operational improvements at Ponta da Madeira port, which were impacted by abnormal rains in 2Q19.