Brazil: Vale's iron ore production rises by 4% y-o-y in H1CY'24

• Iron ore production guidance remains intact at 310-320 mnt
  
  
• Pellet production guidance for this year has been set at 38-42 mnt
  
  

Brazilian miner Vale recorded total iron ore production at 151.42 million tonnes (mnt) in the first half of calendar year 2024 (H1CY'24), up by 4% y-o-y as against 145.51 mnt in H1CY'23.

The solid operational performance at the Vargem Grande Complex and the improved performance at the Paraopeba Complex, particularly at the Viga plant following maintenance carried out in 2Q23, highlighted the overall enhancement in operations.

Furthermore, the S11D mine, which is a large surface mine owned and operated by Vale in the Carajas region of Brazil, achieved the record production in Q2 since 2020, with continued asset reliability initiatives and following the plants switch to wet processing last year, Brucutu now has a larger portion of high-grade ore production.

On a quarterly basis, output increased by 14% to 80.59 mnt as compared to 70.82 mnt in Q1CY'24.

Pellet output remains largely stable y-o-y in H1CY'24: Pellet output was recorded at 17.36 mnt in H1CY'24, slightly down by 0.4% as compared to 17.42 mnt in H1CY'23. Due to a shortage of pellet feed at the Vargem Grande facility and maintenance work being carried out at the Sao Luis plant, operations have been affected.

On a quarterly basis, output was up by 5% to 8.89 mnt in Q2CY'24 as against 8.46 mnt in Q1CY'24.

Iron ore sales rise y-o-y in H1CY'24: Vale recorded iron ore (including pellet) sales at 143.61 mnt in H1CY'24 (January-June 2024), increased by 10.4% y-o-y as against 130.03 mnt in H1CY'23 (January-June 2023). Meanwhile, iron ore sales rose sharply by 25% q-o-q to 79.79 mnt in Q2CY'24 as compared to 63.82 mnt in Q1CY'24. The robust performance in sales during this period was driven by heightened shipment levels and successful inventory liquidation from previous periods.

Pellet sales up y-o-y: Pellet sales rose by 7% y-o-y to 18.08 mnt in H1CY'24 as against 16.94 mnt in H1CY'23. However, sales fell by 4% q-o-q to 8.86 mnt in Q2CY'24 as against 9.22 mnt in Q1CY'24.

CY'24 guidance

• Vale's iron ore production guidance remained intact at 310-320 mnt for CY'24.
  
  
• Pellets production guidance for this year has been set at 38-42 mnt for CY'24.