SMM10, March 21: recently, Vale released its production and sales report for the third quarter of 2020, which showed that in the third quarter of 2020, the output of finished nickel was 47100 tons, while sales reached 58200 tons, an increase of 37.3% month on month, due to higher nickel prices in this quarter and a more stable market.
The output of this quarter is mainly affected by the following factors:
(I) maintenance in the North Atlantic operating area originally scheduled for the first and second quarters of this year was postponed to the third quarter paving the way for productivity gains in the fourth quarter;
(2) the market path related to Indonesian factory (PTVI) product portfolio management becomes longer;
(III) production of finished nickel based on VNC products increased temporarily in the second quarter of 2020 as the (VNC) plant in New Caledonia disposed of all remaining stocks of nickel oxide raw materials.
Output by region:
Canadian business
As a result of the COVID-19 pandemic, maintenance arrangements from the first and second quarters to the third quarter affected North Atlantic operations. Ore production from Sudbury reached 6.5 kt in the third quarter of 2020, down 52 per cent from the second quarter of 2020. Ore production from Thompson sources reached 2.2 kt in the third quarter of 2020, down 39% from the second quarter of 2020. The decrease in production is due to planned and unplanned maintenance at the CopperCliff Nickel Refinery and Clydach Refinery, as well as planned maintenance at the Sudbury and Thompson mines.
Voisey'sBay ore production reached 10.1 kt in the third quarter of 2020, an increase of 7 per cent over the second quarter of 2020, mainly due to an increase in productivity at the Changgang processing plant throughout the quarter. The recovery of the Voisey'sBay business ensures sufficient feed to maintain strong performance in the fourth quarter and beyond.
Indonesia Business (PTVI)
Finished nickel production from Indonesian business sources reached 15.3 kt in the third quarter of 2020, down 13% from the 2020 quarter, mainly due to longer market access related to portfolio management and regular maintenance of Clydach refineries in that quarter. The inventory of PTVI raw materials currently stored in Clydach will lay the foundation for increased productivity in the fourth quarter.
New Caledonia (VNC)
Finished nickel production from VNC reached 8.5 kt in the third quarter of 20 years, down 18% from the second quarter because all remaining nickel oxide raw material stocks were disposed of in the second quarter as part of the VNC refinery production reduction plan. After the separate production of nickel hydroxide cake, it has returned to normal. Due to the change of product structure, the Dalian refinery began the maintenance and maintenance process in July.
Business in Brazil (On ç aPuma)
In the third quarter of the 2020 quarter, production of On ç aPuma reached 3.2 kt, the same as in the second quarter of 2020. Productivity is limited as a result of the safety recommendation to postpone maintenance work beyond July. Maintenance work was successfully completed at the end of the quarter, which will lead to higher production in the fourth quarter and reach full capacity production.
"Click to view Vale's third quarter production and sales report.
