Get to know our operational results in the second quarter of 2016

About Vale

7/21/2016

Get to know our operational results in the second quarter of 2016

Our Production Report for the second quarter of 2016 was released on this Thursday, July 21. The document provides an overview of our operations in the period.

The highlight was the iron ore production in Carajás, which reached a record 36.5 Mt in 2Q16, the highest second quarter production.

Carajás also achieved a production record for a first quarter of 32.4 Mt in 1Q16, representing an increase of 4.9 Mt (or 17.7%) in relation to 1Q15, mainly due to the excellent performance of the N4WS and N5S mines. It represents an increase of 4.9 Mt (or 15.5%) in relation to 2Q15 and was mainly due to the increase in the overall equipment efficiency of the truck fleet and the ramp-up of the N4WS and N5S extension pits.


Download

Download our 2Q16 Production Report and read about our performance.

Download 2Q16 Production Report

See highlights of some of our businesses in the infographic:

Iron ore

Vale’s iron ore production was 86.8 Mt in 2Q16, 9.3 Mt higher than in 1Q16, due to weatherrelated seasonality and better productivity in the Northern System, and was 2.5 Mt lower than in 2Q15 mainly due to: (i) the strategic decision to marginally reduce production from lowermargin operations and other actions; (ii) the stoppage of run of mine supply to Samarco.

Based on the same criterion of margin optimization, production in 1H16 and forecast projection for the remainder of 2016 adjusted to seasonality indicate an annual production in the lower end of the 340-350Mt guidance range for 2016.

Pellet production, excluding Samarco’s attributable production, totaled 10.0 Mt in 2Q16, 12.4% and 17.9% lower than in 1Q16 and 2Q15, respectively, mainly as a result of: (i) the halt of the Fábrica pelletizing plant, due to delays in obtaining environmental permits for the expansion of adjacent mines; and (ii) the scheduled maintenance stoppages at the Tubarão plants in 2Q16.

Our iron ore mines are concentrated in Brazil, where we also operate pelletizing plants. We have two pelletizing plants in Oman and stakes in pellet production joint ventures in China.

Find out more about our iron ore and pellet activities

Nickel

Production of nickel reached a record for a second quarter of 78,500 t in 2Q16, being 6.8% higher than in 1Q16, mainly due to strong performances in Thompson, Indonesia (PTVI) and Onça Puma. Production was 17.0% higher than in 2Q15.

We have nickel mines and operations in Brazil, Canada, Indonesia and New Caledonia. We also have refineries – solely owned and through joint ventures – in China, South Korea, Japan, the United Kingdom and Taiwan.

Find out more about our nickel activities

Coal

Coal production totaled 1.5 Mt in 2Q16, 9.5% and 25.2% lower than in 1Q16 and 2Q15, respectively, mainly due to the lower production at Carborough Downs which faced geological instability issues in 2Q16.

We are present in Australia and Mozambique, the two countries that are set to contribute most to growth in global coal supply in the coming years. We also have stakes in one joint venture in China.

Find out more about our coal activities

Copper

Production of copper was a record for a second quarter with 107,400t in 2Q16, 3.9% lower than in 1Q16, mainly due to less feed from third parties and 3.4% higher than in 2Q15 mainly due to higher production from Sudbury and Salobo’s ramp-up.

We produce copper in Brazil, Canada and Zambia. Our Brazilian operations are located in Carajás, where they benefit from our pre-existing logistics infrastructure for transporting iron ore.

Find out more about our copper activities

Fertilizers

Potash production totaled 101,000 t in 2Q16, 9.1% and 9.8% lower than in 1Q16 and 2Q15 respectively. The decline was due to an unscheduled maintenance stoppage at the Taquari Vassouras beneficiation plant and the mining of a lower grade of ore.

Production of phosphate rock was 1.8 Mt in 2Q16, 11.8% higher than in 1Q16 due to higher production in Brazil, which was partially offset by lower production in Peru (Bayóvar). Production was 14.6% lower than in 2Q15 due to a decline in production in the Brazilian and Peruvian (Bayóvar) operations.

We produce fertilizer production inputs in Brazil and Peru. We are also developing projects in Mozambique and Canada.

Find out more about our fertilizer activities

​​​​​​​

Get to know our operational results in the second quarter of 2016