Brazil: Vale to Resume Operations at Timbopeba Mines Next Week

Vale as on 29th Apr'20 through a press release communicated that next week the miner will resume dry processing operations at the Timbopeba Mine, part of the Mariana Complex. Such production was authorized by the external audit retained by the Public Prosecutors' Office of the State of Minas Gerais, pursuant to the agreement between Vale and the Prosecutors in the Public Civil Action for Timbopeba.

The mine was suspended since mid of Mar '20. The vibration test for the mines was concluded towards Jan'20, enabling restart of dry processing with 330,000 MT fines output per month.

The wet processing activities at the mines are expected to resume by Q4 CY20, after the construction of pipeline for tailing disposal and approval from external authorities. The resumption of wet processing will enable the mine to operate at full capacity of 1 MnT per month.

The resumption of dry processing and the expected return of wet processing in 4Q20 are already included in Vale's CY20 iron ore fines production guidance of 310-330 million tons.

Vale iron ore and pellet output fell for Q1 CY20

Vale total iron ore and pellet production depicted fall by 24% to 66.5 MnT in Q1CY20 against 87.7 MnT in Q4CY19.

The iron ore fines output witnessed drop to 59.6 MnT, down 24% on quarterly basis compared to 78.3 MnT in Q4 CY19. The production for the quarter stood below the production guidance of 63-68 MnT amid unscheduled maintenance of conveyor belt at S11D, operational restrictions at the Northern Range, stronger weather related issues and heavy rains in South eastern Brazil.

The total pellet production recorded at 6.9 MnT down 27% Q-o-Q as against 9.4 MnT in Q4 CY19. It fell by 43% against 12.2 MnT in Q1 CY19.