The world's largest iron-ore producer, Rio de Janeiro, Brazil-based Vale SA released its Q3 2010 production report Monday, announcing that the production of iron ore reached 82.6 million metric tons (mt), representing the second largest quarterly output in Vale's history and the best performance since the record of 85.8 million mt achieved in 3Q 2008.
In another important achievement, the performance of Vale's iron ore operations was sufficient to feed the all-time high pellet output of 13.6 million mt in 3Q 2010.
In the first nine months of 2010, Vale produced 227.5 million mt of iron ore and 36.8 million mt of pellets, increasing 30.4 percent and 143.5 percent, respectively, over the same period last year.
Iron-ore output increased 8.9 percent on a quarter-on-quarter basis, primarily due to production at Carajas, which was responsible for 70 percent of the expansion. When compared to the first nine months of last year, total iron ore production of 227.5 million mt increased by 30.4 percent in 2010.
The Southeastern System, which encompasses the Itabira, Mariana, Minas Centrais, Corumbá and Urucum mining sites, had a very good performance, reaching a production of 32.6 million mt, thus rising 5.1 percent over 2Q 2010 and 27.8 percent over 3Q 2009.
The Southern System - Minas Itabiritos, Vargem Grande and Paraopeba - produced 20.3 million mt in 3Q 2010, 2.3 percent above the figures for 2Q 2010. Production of 8.3 million mt from Itabiritos grew 5.6 percent and marked a new record. This was chiefly influenced by an additional processing plant beginning to operate in June.
At Carajás, iron ore output was 27.0 million mt in 3Q 2010 - a historical record - increasing 21.1 percent over 2Q 2010. The elimination of the operational problems at the discharge in the Ponta da Madeira maritime terminal was the main factor underlying the strong production growth. In addition, the improved performance of the Carajás railroad and the end of the rainy season in the Amazon region helped mining performance to excel.
In 3Q 2010, Vale's coal production reached an all-time high volume of 1.9 million mt, which was comprised of 814,000 mt of metallurgical coal and 1.1 million mt of thermal coal. This represents a 7.9 percent increase from 2Q 2010, but a year-on-year decrease of 3.6 percent. Vale's metallurgical coal output for the first nine months of 2010 jumped 22.3 percent from the same period last year.
Vale is satisfied with its overall production in Q3, and commented that "the improvement in operational performance of the existing assets and the delivery of new projects amidst a scenario of growing global demand for minerals, metals and fertilizers are adding significant strength to our financial results."