For the first time in our history, Vale is operating at under US$ 20 per ton: costs and production ramp-ups are the highlights of 1Q15

About Vale

4/30/2015

For the first time in our history, Vale is operating at under US$ 20 per ton: costs and production ramp-ups are the highlights of 1Q15

For the first time in our history, Vale is operating at under US$ 20 per ton: costs and production ramp-ups are the highlights of 1Q15

Video
Watch the video in full and then check out the infographic with the highlights of the 1Q15 results

For the first time in our history, Vale is operating with a production cost for iron ore under US$ 20 per ton. Due to significant efforts, production costs, also called FOB cash costs, fell from US$ 23.2 to US$ 19.8 in the first quarter of 2015, in comparison with 4Q14. The freight rates from Brazil to our customers decreased by over 20 %, falling from US$ 21.7 to US$ 17.2 per ton. Vale also reduced expenses costs from US$ 9.3 per ton to US$ 4, a drop of more than 40%.

“We achieved an overall reduction of over US$ 13.1 per ton. This is a very significant result, due to the combination of cost cutting initiatives in the company, the devaluation of the Brazilian Real and the decrease in the price of bunker fuel for our ships. We are in a very competitive market, and this is only the first step. We are confident that we can achieve even greater cost reductions”, explains Luciano Siani, our Chief Financial Officer (CFO), in the video about Vale´s performance in 1Q15.

In terms of operational results, Vale achieved many records: the best first quarter ever in iron ore and nickel and historical records in copper and gold. “Vale is entering a great period of increased production and we are beginning the dilution of fixed costs on the back of increased volumes”, says Siani. Watch the full video and find out more about our results in the infographic.

Get to know our results

infographic
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For the first time in our history, Vale is operating at under US$ 20 per ton: costs and production ramp-ups are the highlights of 1Q15