[iron ore] Vale's iron ore production and sales hit a new high in the second quarter, with record sales of Rio Tinto blocks

Vale (Vale)

Brazil's Vale (Vale) iron ore production and sales rose in the January-June period, hitting an all-time high in the second quarter. The company's iron ore production target remains at 390 million tons in 2018.

The company's quarterly production report showed Vale's iron ore production of 96.7 million tonnes in the second quarter, up 5.3 per cent from a year earlier and 0.4 per cent in the first half of the year, according to the company's quarterly production report.

Despite a nationwide strike by truck drivers in Brazil in May, the company still produced a record number of trucks in the second quarter. Vale said the 12-day strike disrupted production and logistics in Brazil, forcing many companies to declare force majeure. "Vale has overcome these challenges by taking advantage of the flexibility of the supply chain, switching supplies between mines, alternately using rail transport input materials, adjusting mining methods and production plans, and adjusting process parameters," the company said.

Vale's pellet production in the second quarter was 12.8 million tons, up 5.1 per cent from a year earlier. Production rose 4 per cent to 25.6 million tons in the first half of the year. The record high in production was mainly due to the resumption of production at the Tubarao I and II pellet plants. The S ã o Luis pelletizing plant will be in production by the end of the third quarter, and Vale aims to produce 55 million tons this year.

Sales of iron ore and pellets totaled 86.5 million tons in the second quarter, up 5.8 per cent from a year earlier. Iron ore sales were 73.2 million tons and pellet sales were 13.2 million tons. Sales rose 7 per cent in the first half from a year earlier to 170.8 million tonnes.

BHP Billiton (BHP Billiton)

The latest production report from mining giant BHP Billiton (BHP Billiton) showed iron ore production totaling 238 million tonnes (275 million tonnes on a 100 per cent share basis) in fiscal 2018, up 3 per cent from a year earlier. The mine produced 63.58 million tons of iron ore (72.15 million tons at a 100 per cent stake) in the fourth quarter of fiscal 2018 (as of June 30, 2018). The increase in BHP production in the quarter was mainly due to increased productivity and the stabilization of the supply chain system, with both Kimbba and Newman mine production hitting new highs.

In fiscal year 2018, iron ore shipments totaled 237 million tons (273 million tons by 100 per cent share weight), of which 58.2 million tons were for lump ore and 179 million tons for powdered ore. Shipments totalled 62.9 million tons (71.39 million tons at a 100 per cent stake) in the fourth quarter of fiscal 2018.

Rio Tinto (Rio Tinto)

Rio Tinto released its latest iron ore production report, producing 85.5 million tonnes of iron ore in the Pilbara region in the second quarter of 2018, up 2.9 per cent from a month earlier and 7.1 per cent from a year earlier. In the second quarter, 88.5 million tons of iron ore were shipped from the Pilbara mining area, up 10 per cent from the previous month and 14 per cent from the same period a year earlier. Shipments are expected to be at the high levels of the existing 330 million-340 million ton guidance range in 2018, thanks to improved weather and productivity gains across the entire production and operations system.

Pilbala produced 21.9 million tonnes in the second quarter, up 6 per cent from a month earlier and 11 per cent from a year earlier, and 42.6 million tonnes in the first half of 2018, up 9 per cent from the same period last year. Rio Tinto's second-quarter block sales were a record thanks to a strong lump-ore premium in the first half of the year.