Brazilian miner Vale has revised its production guidance for 2020 at 310-330mn mt iron ore fines, 35-40mn mt pellets and 360,000-380,000mt of copper. Its nickel production excluding Vale New Caledonia (VNC) is expected to reach 180,000-195,000mt. 

 

The company has lowered its guidance on the back of COVID-19 related stoppages and idling of Voisey’s Bay. Earlier, the company had pegged its guidance at 340-355mn mt of iron ore fines, 44mn mt of pellets, 400,000mt copper and 200,000-210,000mt of nickel excluding VNC. 

 

The company’s iron ore fines production in Q1 2020 (Jan-March) was 59.6mn mt, short of its guidance of 63-68mn mt, according to its Q1 2020 result declared on April 17. The decline in production was a result of unscheduled maintenance of its long-distance conveyor belt in the Northern system and weather-related conditions, especially in March among other reasons.

 

Production

000’mtQ1 2020Q4 2019Q1 2019

Q-o-Q 

Change

Y-o-Y 

Change

Iron ore59,60578,34472,870-23.90%-18.20%
Pellets6,9269,41512,174-26.40%-43.10%
Nickel53.256.754.8-6.20%-2.90%
Copper94.590.393.84.70%0.70%

Sales

000’mtQ1 2020Q4 2019Q1 2019

Q-o-Q

Change

Y-o-Y

Change

Iron ore51,65677,90755,416-33.70%-6.80%
Pellets7,31110,96612,314-33.30%-40.60%
Nickel44.24750.3-5.90%-12.10%
Copper89.287.890.41.60%-1.30%

Vale is continuously evaluating the impact of the COVID-19 pandemic on operations, consumer demand and supply chain to keep market participants informed. 

 

Vale Indonesia 

PT Vale Indonesia’s nickel matte production rose by 35pc to 17,614mt in Q1 2020 (Jan-March) from the prior-year period. Output, however, declined by 14pc from the prior quarter due to planned maintenance activities. 

 

Leave a Reply

Your email address will not be published.