3Q20 Production Report

Business

3Q20 Production Report

Vale´s Production Report for the third quarter of 2020 (3Q20) was announced on Monday, October 19th. The company is evolving with its stabilization plan and delivered a strong iron ore production in 3Q20. Nickel and Copper businesses managed to recover productivity for a solid start in 4Q20, after normalizing routine maintenance in the quarter. Results were enabled by the workforce commitment to the company's safety standards and strict operational discipline, following the continuous implementation of the Vale Production System (VPS).

Vale's Iron ore fines production totalled 88.7 Mt, an increase of 21.1 Mt compared to the previous quarter. The production record of 56.9 Mt in a quarter was reached in the Northern System, with August as the best month with 19.7 Mt. S11D had a record production in September, with 8.3Mt, and in the quarter, with 24.4 Mt. Sales volumes of iron ore fines and pellets, with a premium of US$ 4.6/t, reached 74.2 Mt in 3Q20, an increase of 20.4%.

The Southern and Southeastern Systems overall performance improved across operating units, notably in the Itabira Complex and Timbopeba mine (running for a full quarter given the resumption in June) and with the resumption of operations at Fazendão mine in July.

Operations have achieved increased rates and stability with safety, based on the progressive implementation of the VPS and measures like the Safe Work Permission (PTS), which are essential to transform Vale's culture into one driven to safety and operational excellence.

Download 3Q20 production report

See highlights of some of our businesses:

Nickel

  • Production of finished nickel was of 47.1 kt in 3Q20.
  • Sales volumes reached 58.2 kt, an increase of 37.3%, as a result of better prices in the quarter and more stable market conditions.
  • Production in 3Q20 was influenced mainly by maintenance work rescheduled from 1Q20 and 2Q20 to 3Q20 in North Atlantic operations.
Find out more about our nickel activities

Copper

  • Copper production reached 87.6 kt in 3Q20, higher than the previous quarter, mainly due to the successful resumption of Voisey’s Bay operations.
  • Sales volumes of copper were 80.6 kt in 3Q20, 3.5% lower than 2Q20 mainly reflecting the rebuilding of inventories throughout the quarter and lagged timing of sales.
  • A stronger performance is expected in 4Q20 at South Atlantic operations with the reduction of COVID-19-related impacts on operations and maintenance routines.
Find out more about our copper activities

Iron Ore and pellets

  • Vale’s iron ore fines production totalled 88.7 Mt, an increase of 21.1 Mt compared to the previous quarter.
  • Vale’s pellet production totalled 8.6 Mt in 3Q20, up 21.1%, mainly due to higher availability of pellet feed, especially from the Itabira Complex, and improved operational performance at the pelletizing plants.
  • Sales volumes of iron ore fines and pellets, with a premium of US$ 4.6/t, reached 74.2 Mt in 3Q20, an increase of 20.4%.
Find out more about our iron ore and pellet activities

Coal

  • Coal production restarted in July, after decelerating since April and temporarily stopping in June, given strong slowdown in demand.
  • Production in 3Q20 reached 1.4 Mt and Vale mobilizes teams to resume the 3-month maintenance plan revamp in November 2020.
  • In 3Q20, production increased by 9.3% compared to 2Q20, since no further operational stoppages were required.
Find out more about our coal activities

3Q20 Financial Report

The 3Q20 financial report will be released on October 28th. After the report´s release, some of our key executives will participate in webcasts with investors to present the quarter’s results. Click here to learn more about webcasts.