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Iron ore production at Vale lower than expected in 2022

Wednesday, 01 February 2023 23:51:49 (GMT+3)   |   Sao Paulo
       

The iron ore production at the Brazilian miner Vale totaled 308 million mt in 2022, 2 percent less than in 2021 and less than the target for the year, established at 310 million mt.

According to the company, the decline was due chiefly to licensing delays of the Serra Norte operation and waste processing and operational performance of the S11D mines in the north of the country.

This was partially compensated by production ramp-up at Vargem Grande mine, higher dry processing production at Brucutu mine and higher purchases from third parties in the southeast.

The production of pellets totaled 32 million mt in 2022, 1 percent more than in 2021, with an improved ratio of direct reduction pellets (49 percent of total production, against 41 percent in 2021), leveraging on the higher-quality feed and taking advantage of better market premiums.

During the last quarter of 2022, iron ore fines and pellets sales increased by 22 percent from the previous quarter, reaching 90 million mt, thanks to the utilization inventories formed in Q3.

For 2023, the production target of the company stands in a range of 310 to 320 million mt.


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