Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Vale anticipates achieving an annual iron ore capacity of 400mn mt by intensifying output from all of its operations.

 

The mining company’s current production capacity is 318mn mt a year, although it hit 385mn mt in 2018. Its exceptional output in 2018 was followed by the Brumadinho dam collapse a year later, and COVID-19-related work stoppages this past March.

 

The iron ore and pellet producer hasn’t indicated when it will reach its new output projection, however, it noted the possibility of reaching 450mn mt of yearly capacity at some point, according to news reports.

 

Vale, along with the majority of industry businesses, has gradually resumed normal operations as the effects of the pandemic have waned. The company exported 33.4mn mt of iron ore in July, increasing by 60pc from May.

 

The Brazilian miner set a production goal of 310-330mn mt this year. Recently, the company started producing high-grade, ground iron ore fines for pellet production at its 3mn mt per annum grinding hub, located at the Shulanghu ore transfer terminal in Zhoushan City, China. The section will support some of the increased pellet demand from China’s steel industry.

 

 

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