Business

1Q22 Production Report



Vale´s Production Report for the first quarter of 2022 (1Q22) was released on Tuesday, April 19th. Vale achieved in Iron Ore a solid premium of US$ 9/t in 1Q22, the highest level since 2Q19, reflecting Vale’s high-quality portfolio and a tight supply-demand balance of high quality and low contaminant ores in the global market.

On a quarter over quarter basis, production was lower due to (i) the heavy rainfall level in January in Minas Gerais; (ii) delays in obtaining licenses, impacting ROM availability, mainly in Serra Norte; (iii) a performance below expectation in S11D and Sossego; and (iv) major maintenance which should benefit production on a year to go, allowing Vale to maintain our expected annual Iron Ore production guidance range for the year of 320-335 Mt.

Download 1Q22 production report

See highlights of some of our businesses:

Iron Ore and pellets

  • Vale’s iron ore fines production totaled 63.9 Mt in 1Q22, 4.1 Mt lower than in 1Q21.
  • Sales volumes of iron ore fines and pellets totaled 60.6 Mt in 1Q22 with a premium of US$ 9.0/t in 1Q22.
  • It represents an increase of US$ 4.3/t compared to 4Q21 due to higher spread of 65% Fe and low alumina ore indexes vs. 62% Fe benchmark index; and better quality mix of products.
Find out more about our iron ore and pellet activities

Nickel

  • Production of finished nickel was 45.8 kt in 1Q22, 5.4% lower than 1Q21 explained by: Sudbury mines ramping up during 1Q22 after the labor disruption; the remaining impact of the incident at Totten mine; the ramp-up of VBME project; and unscheduled maintenance on Onça Puma electric furnace.
  • Sales of nickel were 18.8% lower than 1Q21, mainly due to lower production and an inventory strategy to cover sales commitments during the period of planned maintenance on Sudbury surface plant, in 2Q22.
  • Despite that, Sudbury mines achieved pre-strike rates in February with Totten mine resuming operations in the quarter. As a result, we expect our Nickel production for the year to be in line with our guidance of 175-190 kt.
Find out more about our nickel activities

Copper

  • Production of copper was 56.6 kt in 1Q22, 26.0% lower than 1Q21.
  • The decrease was largely caused by lower Sossego production, which operated for 24 days during the quarter, due to scheduled SAG mill maintenance.
  • Given additional unplanned maintenance required at Sossego, at this point we expect copper production to be closer to the low end of our guidance of 330-355 kt of copper in 2022.
Find out more about our copper activities

Coal

  • Coal production was 87.5% higher YoY as a result of the revamp of the plant and the absence of impacts of the COVID-19 pandemic seen on the coal seaborne demand in the 1Q21.
  • When compared to 4Q21, coal production was 27.5% lower, heavily impacted by weatherrelated conditions resulting from the Ana cyclone that hit the South of Africa in January and February.
Find out more about our coal activities

1Q22 Financial Report

The 1Q22 financial report will be released on April 27th. After the report´s release, some of our key executives will participate, on April 28th, in webcasts with investors to present the quarter’s results. Click here to learn more about webcasts.