Brazilian iron ore miner Vale has indicated that production resumption at its idled mines could get postponed due to delays in inspections, assessments, and authorizations.
The iron ore mining giant, which reported its Q1 2020 earnings on Wednesday noted that its production was already impacted because of lockdown measures related to containing COVID-19’s spread. The company has put many of its iron ore mines under care and maintenance due to these lockdowns.
In early April, Vale revised down its 2020 output forecast across several divisions due to the COVID-19 outbreak. The company had reported its iron ore fines output of 59.6mn mt in the first quarter was below its Q1 2020 guidance of 63-68mn mt.
The company also noted that the investment guidance presented at the beginning of the year would decelerate as it plans to cut its capital expenditure this year to 4.6bn from $5bn. Vale cited a depreciating currency also as one of the reasons for taking this step.
Vale reported a net income of $239mn and net revenue of $6.96bn in the first quarter this year, compared to the same period the prior year. Adjusted EBITDA reached $2.88bn, the company said.