Vale's Q1'22 iron ore, nickel, copper output down YOY; pellets, coal, cobalt up

Vale SA said April 19 that its iron ore, nickel and copper production in the first quarter declined year over year, but iron ore pellets, coal and cobalt output improved.

The company's first-quarter iron ore output decreased 6% year over year to 63.9 million tonnes, and sales fell 9.6% to 53.6 Mt. Output in the three months was partially affected by heavy rains in Brazil's Minas Gerais state in January, which resulted in the temporary halt of the Southern and Southeastern System operations, as well as a four-day shutdown of the Estrada de Ferro Carajás in March due to inclement weather.

Vale's pellet production for the quarter improved 10.1% to 6.9 Mt, with sales up 11.8% to 7.0 Mt.

Nickel production in the three months fell 5.4% to 45,800 tonnes, primarily attributed to the ramp-up of the Sudbury mine in Ontario after a strike at the operation ended. Sales for the period fell 18.8% to 39,000 tonnes.

Copper production dropped 26.0% to 56,600 tonnes due to an extended shutdown at the Sossego mine during scheduled semi-autogenous grinding mill maintenance, which is expected to be completed in May.

Cobalt output improved 6.3% to 755 tonnes, while coal output soared 87.5% to 2.0 Mt, on the back of the absence of COVID-19 impacts on coal seaborne demand during the quarter. Coal sales were up 77.8% to 1.8 Mt.

Full-year 2022 iron ore production guidance was retained at between 320 Mt and 335 Mt, while pellet production is expected at between 34 Mt and 38 Mt. Nickel production is projected at between 175,000 tonnes and 190,000 tonnes, while copper output is expected to range from 330,000 tonnes to 355,000 tonnes.

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