Posted on 17 Jul 2018
Brazil’s Vale increased iron ore production and sales in January-June, setting an all-time record for any second quarter. The company’s iron ore output target for 2018 remains unchanged at 390 million tonnes.
Vale produced 96.7mt of iron ore in Q2. This is up by 5.3% on-year and takes first-half-of-2018 output up 0.4%, Kallanish notes from the company's quarterly production report.
The new production record was achieved despite the nationwide truck drivers’ strike in May. This lasted 12 days and created disruptions in production and logistics across Brazil, leading to force majeure being declared by many companies, says Vale. “Vale overcame these adversities using the flexibility of its supply chain, with transfers of supplies between sites, alternative use of railways to transport inputs, adjustment in mining methods and production plans and change in mill process parameters,” says the miner.
Vale’s Q2 iron ore pellet production totalled 12.8mt, up 5.1% on-year. Six-month output was up 4% to 25.6mt. This record volume was mainly supported by the resumption of the Tubarão I and II pellet plants. Vale’s target is to reach 55mt in 2018, after the operational start-up of the São Luis pellet plant by the end of Q3.
Iron ore and pellet sales totalled 86.5mt in Q2, up 5.8% on the same period of last year. Iron ore sales represented 73.2mt, while pellets were 13.2mt. H1 sales increased 7% y-o-y to 170.8mt.
