[mining Quarterly report] Vale: manganese ore output dropped 59% month-on-month in the second quarter. Ferroalloy production dropped 45%.

SMM7 March 21: recently, Vale released its production and sales report for the second quarter of 2020. The company said that the second quarter of 2020 was challenging for Vale. On the one hand, the company worked hard to increase production. On the other hand, it took strong measures to protect employees and provide support to the community during the new crown pneumonia epidemic. In the second quarter of 2020, Vale's businesses faced some of the effects of the new crown pneumonia epidemic. However, in several operating districts with high absenteeism rates, the average absenteeism rate has decreased by about 1 to 2 per cent compared with the peak in April.

In terms of manganese, the output of manganese ore in the second quarter was 149000 tons, down 59 percent from the previous quarter, with sales of 270000 tons, an increase of 23.33 percent, and ferroalloy production of 15000 tons, down 45.2 percent from the previous quarter.

The decrease in manganese ore production is mainly due to the shutdown of the Azul mine. The decision to stop the business was mainly based on a workforce considered at risk and provided assistance to key personnel at the Northern system iron ore production base. As current inventory levels support sales in the second quarter of the 20th quarter and increased shipments at the port of Madeira in Punta, the shutdown is likely to last until December 2020.

The decline in production and sales of ferroalloys was mainly due to a slowdown in production at the Sim esFilho plant in order to implement safety maintenance measures, as well as the temporary suppression of domestic demand due to the COVID-19 pandemic.

Output and sales volume:

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