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TORONTO (miningweekly.com) – Brazilian iron-ore producer Vale has reported record production volumes for the period ended September 30, as production and productivity improvements more than offset the closure of its higher-cost operations during the period.
Vale on Tuesday reported output of 88.2-million tonnes for the third quarter, up 3% over the comparable period of 2014, representing the highest quarterly production in the company’s history.
Slower steel output growth in China and rampant iron-ore oversupply by major producers BHP Billiton, Rio Tinto and Vale, as they jostled for market share, were responsible for holding prices down. In 2014, the price of iron-ore declined by nearly half to about $66/t by late December. The iron-ore price continued to slide this year, dropping to about $50/t by the end of March, with analysts expecting continued pressure until at least 2016.
According to Metal Bulletin, the spot price for benchmark 62% fines closed at $53.76/t on Friday.
As part of its strategy, Vale had shuttered about 13-million tonnes of less efficient operations during the third quarter, including beneficiation plants at the Feijão, Jangada, Pico, Fabrica and Brucutu operations. Nonetheless, productivity gains in other operations partially offset the production stoppages, resulting in volumes acquired from third parties reducing by 37.5% during the third quarter, compared with the second quarter.
For the nine months ended in September, Vale produced a new record of 248-million tonnes, 11.8-million tonnes, or 5% more than in the comparable three-month period a year earlier.
Vale’s pellet output during the nine months, excluding attributable production from Samarco (a joint venture between Vale and BHP Billiton that produced iron-ore pellets) of 10.7-million tonnes, was 35.8-million tonnes, up 14.4% year-on-year – a historical record driven by the start-up of the Tubarão 8 pellet plant and the good performance of the Oman, Fabrica and Vargem Grande pellet plants.
Nickel output topped 71 600 t in the third quarter, 6.7% higher quarter-on-quarter, as a result of the improved performance of the operations in Indonesia and New Caledonia, following maintenance shutdowns during the second quarter.
Copper output reached 99 300 t in the third quarter, 5.3% lower on the second quarter, as a result of the planned maintenance shutdowns in Sudbury, Ontario.
Gold production reached 100 000 oz in the third quarter, which was the best performance ever in a third quarter, owing to Salobo´s record performance.
Coal output reached 2.1-million tonnes in the three-month period, 2% higher over the previous quarter, as a result of the improved performance of Moatize, in Mozambique, which produced 1.32-million tonnes, driven by coal processing plant upgrades.