Brazilian miner Vale said on Monday that its second-quarter iron-ore production totalled 67.6-million tonnes, up 5.5% from a year earlier and 13.4% higher than the first quarter, despite the impact of the novel coronavirus.
Vale said it was keeping its full-year outlook for iron ore fines production unchanged at 310-million to 330-million tonnes, but emphasised that the most probable scenario was for output to be at the lower end of that range.
The result comes soon after iron-ore prices surged to their highest level in almost a year last week, above $111 a ton, amid a shortage of world supply as China reopens its economy. China has been boosting imports for the key steel ingredient.
Vale's key northern Brazilian mine S11D reached a annualized "run-rate" of 91-million tonnes in June, likely to improve further in the second half, pushing annual production slightly above 85-million tonnes, it said.
Nevertheless, a negative impact on production from the coronavirus of 3.5-million tonnes offset much of the improvements in the north.
Vale has been trying to recover output since a tailings dam in the town of Brumadinho burst early last year, killing some 270 people and forcing many similar structures to be shut down.