Vale Reports Record High in Iron Ore Output, and Copper, Nickel Production Falls

SHANGHAI, Jul. 21 (SMM) - Vale S.A. (Vale) iron ore production (including iron ore acquired from third parties) achieved a record for output in Q2 2017, the company said in an email to SMM.

According to its report, the company produced 91.8 million tonnes in 2Q 2017, 5.8% higher than in 2Q 2016, mainly due to the ramp-up of S11D in the Northern System.

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Iron ore production will be within the lower end of the 360-380 million tonnes guidance range for 2017, and in line with the ongoing strategy to maximize margins.

Nickel production reached 65,900 tonnes in 2Q 2017, 7.7% lower than in 1Q 2017 and 16.1% lower than in 2Q 2016, mainly due to the rebuilding of furnace #2 in advance of the transition to a single furnace operation and the scheduled maintenance shutdown in Sudbury.

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Copper production was 100,800 (excluding Lubambe’s attributable production) tonnes in 2Q 2017, being 6.2% and 4.6% lower than in 1Q 2017 and 2Q 2016, respectively. The decrease was mainly due to lower production in Sudbury as a result of the scheduled maintenance shutdown at the surface plants and mines.

Production of copper in concentrate at Salobo reached a record for a second quarter of 46,000

tonnes, 13.0% higher than in 2Q 2016, mainly due to higher feed grades and stronger plant performance in 2Q 2017.

Vale revises its nickel production guidance to 295,000 tonnes in 2017, reflecting weaker than planned production results at our operations in Thompson, New Caledonia and Indonesia. For both finished production from New Caledonia and Indonesia, there is a lag in the impact of the weaker site production as the material is processed to finished product at our Asian refineries.

Its revised copper production guidance is 447,000 tonnes in 2017, reflecting the impact of unplanned maintenance in the mines in Sudbury, lower third party copper ore deliveries and higher than planned grade variability in Salobo.

¹ Including third party purchases.

² Including Lubambe’s attributable production.

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