Check out our 2Q14 Production Report: record output of iron ore in second quarter

About Vale

7/21/2014

Check out our 2Q14 Production Report: record output of iron ore in second quarter

Our Production Report for the second quarter of 2014 was released on Thursday, July 24. This document presents an overview of our operations during this period.

The highlight was our iron ore production, which amounted to 79.4 million metric tons – our best ever second-quarter performance, with gains in all our production systems compared with 1Q14. Our strong operational performance was due to better weather and the ramp-ups of Plant 2 in Carajás and our new Conceição Itabiritos plant in our Southeast System.


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Download our 2Q14 Production Report and read about our performance.

Download Production Report 2Q14

See highlights of some of our businesses in the infographic:

Iron ore and pellets

In 2Q14, our iron ore output totalled 79.4 million metric tons, our best ever performance for a second quarter. Our production was 12.6% higher than in the same period of last year and up 11.8% from 1Q14. Our performance improved in all our systems, benefiting from better weather and the ramp-ups of Plant 2 in Carajás and our new Conceição Itabiritos plant in our Southeast System.

Our pellet production increased due to strong output at Samarco, in Minas Gerais, which reached 3.0 Mt, up 34.7% from 1Q14 and up 13.9% from 2Q13. Our recently opened Samarco IV pelletizing plant produced 1.1 million tons during the quarter.

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

Nickel

Our nickel production amounted to 61,700 metric tons in 2Q14, down 8.5% from 1Q14 and down 5.2% from 2Q13. An accident and scheduled maintenance shutdowns in Sudbury, Canada and Clydach, UK, impacted our performance this quarter.

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

Coal

Our total coal production in 2Q14 reached 2.2 Mt, up 23.8% from 1Q14, mainly due to improved operational performance at Carborough Downs, Australia, and Moatize, Mozambique.

The ramp-up of the first phase of our Moatize coal project is temporarily restricted by local logistics infrastructure (port and railway) limitations, preventing us from using the mine’s total nominal capacity of 11 million metric tons per year. The start-up of the Nacala logistics corridor, expected for the second half of this year, will eliminate this logistics bottleneck.

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

Copper

In 2Q14, our copper production was 81,000 metric tons, down 8.4% from 1Q14 and down 11.3% from 2Q13. Our planned maintenance shutdown in Ontario was the main factor behind this reduction.

We produce copper in Brazil, Canada and Zambia. Our Brazilian operations are located in Carajás, benefiting from our iron ore transport infrastructure there.

Fertilizers

Our production of phosphate rock amounted to 2.1 million metric tons, a new record for a second quarter, up 9.9% from 1Q14 and up 11.9% from 2Q13. Our output rose in both Brazil and Peru.

In 2Q14, our potash production totalled 96,000 metric tons, down 11.8% from 1Q14 and down 15.0% from 2Q13. This quarter we experienced declining ore grades, given that our mine is nearing exhaustion. Our concentration plant was also available for less time due to a maintenance shutdown.

We produce ingredients for fertilizers in Brazil and Peru, and we are also developing projects in Mozambique and Canada.


2Q14 Financial Report

On Thursday, July 31, we will be releasing our 2Q14 Financial Report. After the report has been released, some of our key executives will participate in webcasts with investors and journalists to present the quarter’s results.

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Check out our 2Q14 Production Report: record output of iron ore in second quarter