Brazil: Vale's iron ore production falls by 1% y-o-y in CY22
Brazilian miner, Vale, recorded iron ore production at 307.79 million tonnes (mnt) in CY22 (the calendar year 2022), down 1.6% as against 312.9 mnt in CY21. Iron ore sale...
Brazilian miner, Vale, recorded iron ore production at 307.79 million tonnes (mnt) in CY22 (the calendar year 2022), down 1.6% as against 312.9 mnt in CY21. Iron ore sales also decreased by 1.5% to 268.8 mnt in CY22 from 272.93 mnt in CY21.
Iron ore output in CY22 was nearly 2% lower y-o-y, owing mostly to sustained Vargem Grande production ramp-up that increased Brucutu dry processing production. This resulted in an increase in third-party buying. Vale attributed the missed projection to seasonally higher rainfall levels in its Brazilian operations, as well as delayed licensing processes in its northern system.
Q4CY22 results
- Vale recorded iron ore production at 80.85 mnt in Q4CY22 (October-December 2022), down by 10% q-o-q as against 89.7 mnt in Q3CY22 (July-September 2022). The iron ore production decreased by 1% y-o-y compared to 81.68 mnt in Q4CY21.
- Vale recorded iron ore sales at 83.1 mnt in Q4CY22 (October-December 2022), significantly improved by 20% q-o-q as against 69.05 mnt in Q3CY2022 (July-September 2022). However, iron ore sales remained largely stable y-o-y compared to Q4CY21.
- Pellets output was recorded at 8.25 mnt in Q4CY22 and remained largely stable q-o-q compared to Q3CY22. Output was down by 9% y-o-y as against 9.07 mnt in Q2CY21. Vale's pellets production recorded at 32.11 mnt in CY22, up 1.3% y-o-y as against 31.7 mnt in CY21. This is because of using higher quality feed and profiting from greater market prices.
Other highlights
- Vale's iron ore production guidance remained intact at 310-320 mnt for CY23.
- Pellets production guidance for this year has been set at 36-40 mnt.