Vale eyes 350 Mt iron ore capacity by 2021-end; Q4'20 output up 7.9% YOY

Vale SA said Feb. 3 that it expects to achieve 350 million tonnes of iron ore production capacity by the end of 2021 after ending 2020 with 322 Mt of capacity amid production restrictions.

The company's iron ore production in the fourth quarter of 2020 increased 7.9% year over year to 84.5 Mt from 78.4 Mt, but pellet production declined 24.4% to 7.1 Mt.

On a quarterly basis, the Brazilian miner's iron ore production fell 4.7%, primarily due to higher rainfall levels and tailings disposal restrictions at its Southeastern System operation.

In the three months to Dec. 31, 2020, iron ore sales improved 6.3% yearly to 82.8 Mt, but pellet sales slipped 22.6% to 8.5 Mt.

For the fourth quarter of 2020, Vale's production of manganese ore tanked 73.6% yearly to 119,000 tonnes, coal fell 34.4% to 1.2 Mt, nickel slipped 1.4% to 55,900 tonnes, cobalt declined 8.7% to 1,042 tonnes and gold decreased 9.1% to 120,000 troy ounces. However, copper output improved 3.5% to 93,500 tonnes

For full-year 2020, iron ore output dipped 0.5% to 300.4 Mt from 302.0 Mt in full-year 2019, attributed to COVID-19-related impacts, constraints in tailings disposal at the Itabira and Brucutu mines, delays in opening new mining fronts in Serra Norte and a four-month stoppage of the Fazendão site. However, production was within guidance of 300 Mt to 305 Mt.

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During the year in review, operations at its Vargem Grande and Timbopeba mines resumed, while the Brazilian miner ramped up operations at the S11D mine.

Pellet output, however, declined 29.0% to 29.7 Mt due to lower pellet feed availability from the miner's sites and production adjustments.

Iron ore sales during the year totaled 254.9 Mt, a 5.4% decline, while pellet sales fell 27.7% to 31.2 Mt.

Vale's full-year 2020 production of manganese ore tanked 53.0% to 740,000 tonnes, coal fell 33.0% to 5.9 Mt, copper declined 5.5% to 360,100 tonnes and gold decreased 2.3% to 469,000 troy ounces. However, nickel production improved 3.2% to 214,700 tonnes and cobalt output increased 6.8% to 4,672 tonnes.

For full-year 2021, Vale expects to produce between 315 Mt and 335 Mt of iron ore.