|
Vale’s iron ore fines production totaled 75.7 Mt in 2Q21, 11.3% higher
than in 1Q21, as a result of: (i) higher volumes from Brucutu with the
increase of high-silica sinter feed production by dry processing taking
advantage of a very favorable market environment; (ii) seasonal
improvement of weather-related conditions in Serra Norte and a strong
performance in Serra Leste; (iii) higher productivity in Itabira
Complex, with the reassessment of temporary tailings management
solutions; (iv) higher third-party purchase; and (v) wet processing
production in Fábrica during the tests to resume beneficiation plant
operations. Those positive results were partially offset by the
interferences (tie-in effect) caused by the installation and
commissioning of the first of four jaspilite crusher in S11D.
Considering the iron ore mining plan and the implementation of new
initiatives, Vale achieved a production capacity of 330 Mtpy, mainly as
a result of Serra Leste achieving full capacity. The start-up date of
some operations were revised due to the time required to receive their
respective authorizations, namely (i) Vargem Grande conveyor belt
resumption (now expected for 3Q21); (ii) to continue Fábrica’s wet
processing production (now expected for 3Q21); and (iii) Torto dam in
Brucutu following the need of extra works to increase safety factor (now
expected for 2H22).
Vale’s pellet production totaled 8.0 Mt in 2Q21, 27.4% higher than in
1Q21, although still limited by pellet feed capacity. Quarterly increase
is mainly explained by the seasonally higher pellet feed availability
which was mainly directed to Oman plants and bythe ramp-up of Vargem
Grande pellet plant.
Sales volumes of iron ore fines and pellets totaled 74.9 Mt in 2Q21, up
14.2% higher than in 1Q21, as iron ore production increased. Iron ore
price premium was US$ 8.4/t2, in line with 1Q21, following higher
pellet, IOCJ and BRBF premiums, which were offset by a higher share of
high- silica products with the increase of sinter feed production by dry
processing, taking advantage of a strong market environment.
Vale maintained its 2021 iron ore production guidance of 315-335 million
tonnes.
T1 Production Summary
|
000’ metric tons |
2Q21 |
1Q21 |
2Q20 |
1H21 |
1H20 |
% change |
|
2Q21/1Q21 |
2Q21/2Q20 |
1H21/1H20 |
|
Iron ore1 |
75,685 |
68,031 |
67,598 |
143,715 |
127,203 |
11.3% |
12.0% |
13.0% |
|
Pellets |
8,008 |
6,287 |
7,070 |
14,295 |
13,997 |
27.4% |
13.3% |
2.1% |
1. Including third party purchases, run-of-mine and feed for pelletizing
plants.
T2 Sales summary
|
000’ metric tons |
2Q21 |
1Q21 |
2Q20 |
1H21 |
1H20 |
% change |
|
2Q21/1Q21 |
2Q21/2Q20 |
1H21/1H20 |
|
Iron ore¹ |
67,218 |
59,298 |
54,615 |
126,516 |
106,271 |
13.4% |
23.1% |
19.1% |
|
Pellets |
7,647 |
6,271 |
6,950 |
13,918 |
14,261 |
21.9% |
10.0% |
-2.4% |
1. Including third party purchases and run-of-mine.
T3 Iron Ore Production
|
000’ metric tons |
2Q21 |
1Q21 |
2Q20 |
1H21 |
1H20 |
% change |
|
2Q21/1Q21 |
2Q21/2Q20 |
1H21/1H20 |
|
Northern System |
43,501 |
42,293 |
42,463 |
85,794 |
82,363 |
2.9% |
2.4% |
4.2% |
|
Northern and Eastern ranges |
26,916 |
25,300 |
24,319 |
52,216 |
45,799 |
6.4% |
10.7% |
14.0% |
|
S11D |
16,585 |
16,993 |
18,144 |
33,578 |
36,564 |
-2.4% |
-8.6% |
-8.2% |
|
Southeastern System |
18,059 |
13,529 |
12,721 |
31,588 |
24,510 |
33.5% |
42.0% |
28.9% |
|
Itabira (Cauê, Conceição and others) |
7,233 |
5,681 |
5,324 |
12,914 |
11,331 |
27.3% |
35.9% |
14.0% |
|
Minas Centrais (Brucutu and others) |
5,490 |
3,456 |
4,190 |
8,946 |
7,839 |
58.9% |
31.0% |
14.1% |
|
Mariana (Alegria, Timbopeba and others) |
5,337 |
4,392 |
3,207 |
9,729 |
5,340 |
21.5% |
66.4% |
82.2% |
|
Southern System |
13,441 |
11,708 |
11,768 |
25,149 |
19,124 |
14.8% |
14.2% |
31.5% |
|
Paraopeba (Mutuca, Fábrica and others) |
5,899 |
5,317 |
5,873 |
11,216 |
9,521 |
10.9% |
0.4% |
17.8% |
|
Vargem Grande (Vargem Grande, Pico and others) |
7,542 |
6,391 |
5,895 |
13,933 |
9,603 |
18.0% |
27.9% |
45.1% |
|
Midwestern System |
684 |
500 |
645 |
1,184 |
1,204 |
36.8% |
6.0% |
-1.7% |
|
Corumbá |
684 |
500 |
645 |
1,184 |
1,204 |
36.8% |
6.0% |
-1.7% |
|
IRON ORE PRODUCTION1 |
75,685 |
68,031 |
67,598 |
143,715 |
127,203 |
11.3% |
12.0% |
13.0% |
|
IRON ORE SALES2 |
67,218 |
59,298 |
54,615 |
126,516 |
106,271 |
13.4% |
23.1% |
19.1% |
|
IRON ORE AND PELLETS SALES |
74,865 |
65,569 |
61,565 |
140,434 |
120,532 |
14.2% |
21.6% |
16.5% |
1. Including third party purchases, run-of-mine and feed for pelletizing
plants.
2. Including third party purchases and run-of-mine.
Northern System
The better performance of our Northern System was caused by the seasonal
improvement from better weather conditions and the strong performance in
Serra Leste, which achieved its full production capacity of 6 Mtpy; but
partially offset by the negative impact of the tie-in effect of the
installation of the f irst of four jaspilite crushers in S11D. The
second jaspilite crusher is expected to be installed by the end of 3Q21.
As previously announced, Vale has resumed loading activities at ship
loader 6 at the Ponta da Madeira Maritime Terminal, in São Luís,
Maranhão, after 5 months of maintenance due to a fire in the equipment.
The maintenance of ship loader 6, which involved the substitution of
over 60% of its components, did not impact Ponta da Madeira Maritime
Terminal’s monthly iron ore shipment schedule for the year.
Southeastern System
The solid performance of Southeastern System’s was a result of (i) the
increase in high-silica sinter feed production in Brucutu from dry
processing, thus taking advantage of the strong iron ore market with a
solid price environment; (ii) higher productivity in Itabira Complex,
with the reassessment of temporary tailings management solutions; and
(iii) better performance at the Timbopeba site from the commissioning of
the 3 additional wet-processing lines during March and despite the 9-day
stoppage due to Xingu dam interdiction in EFVM railway operation.
In compliance with the interdiction term drawn up by the Regional
Superintendence of Labor (SRT), the access of workers and the
circulation of vehicles to the flood zone of the Xingu dam, located in
Mariana, including the EFVM railway, was suspended, temporally impacting
Timbopeba and Alegria site operations. In order to guarantee the
operational stability of these sites, Vale implemented an unmanned train
operation covering a 16 km stretch to expedite Timbopeba site production
and increased the ROM availability from Alegria mine.
Southern System
The operational performance in 2Q21 can be in large attributed to (i)
higher third-party purchases; (ii) production in Fábrica by wet
processing during the tests to resume beneficiation plant operations;
and (iii) stronger production from Abóboras and Capitão do Mato mines,
located in Vargem Grande complex, as expected in mining plan.
Pellets
T4 Pellet Production
|
000’ metric tons |
2Q21 |
1Q21 |
2Q20 |
1H21 |
1H20 |
% change |
|
2Q21/1Q21 |
2Q20/2Q19 |
1H20/1H19 |
|
Northern System |
748 |
961 |
919 |
1,709 |
1,802 |
-22.2% |
-18.6% |
-5.2% |
|
São Luis |
748 |
961 |
919 |
1,709 |
1,802 |
-22.2% |
-18.6% |
-5.2% |
|
Southeastern System |
3,963 |
3,609 |
3,537 |
7,572 |
8,669 |
9.8% |
12.0% |
-12.7% |
|
Tubarão 1 and 2 |
- |
- |
- |
- |
- |
- |
- |
- |
|
Itabrasco (Tubarão 3) |
742 |
583 |
455 |
1,325 |
1,343 |
27.3% |
63.1% |
-1.3% |
|
Hispanobras (Tubarão 4) |
- |
169 |
363 |
169 |
992 |
-100.0% |
-100.0% |
-83.0% |
|
Nibrasco (Tubarão 5 and 6) |
974 |
699 |
842 |
1,673 |
2,067 |
39.3% |
15.7% |
-19.1% |
|
Kobrasco (Tubarão 7) |
803 |
607 |
541 |
1,410 |
1,351 |
32.3% |
48.4% |
4.4% |
|
Tubarão 8 |
1,445 |
1,551 |
1,336 |
2,996 |
2,916 |
-6.8% |
8.2% |
2.7% |
|
Southern System |
975 |
656 |
129 |
1,631 |
129 |
48.6% |
655.8% |
1164.3% |
|
Fábrica |
- |
- |
- |
- |
- |
- |
- |
- |
|
Vargem Grande |
975 |
656 |
129 |
1,631 |
129 |
48.6% |
655.8% |
1164.3% |
|
Oman |
2,322 |
1,061 |
2,485 |
3,383 |
3,397 |
118.9% |
-6.6% |
-0.4% |
|
PELLETS PRODUCTION |
8,008 |
6,287 |
7,070 |
14,295 |
13,997 |
27.4% |
13.3% |
2.1% |
|
PELLETS SALES |
7,647 |
6,271 |
6,950 |
13,918 |
14,261 |
21.9% |
10.0% |
-2.4% |
Production overview
Pellet production increased from 1Q21, although still limited by the
pellet feed availability from Itabira and Brucutu. Quarterly results
variations are mainly explained by the seasonally higher pellet feed
availability which was mainly directed for Oman plants and the ramp-up
of Vargem Grande pellet plant, which were partially offset by a 20-day
maintenance carried out in São Luis plant in May and June. |
