1Q20 Production Report

Business

1Q20 Production Report

Vale´s Production Report for the first quarter of 2020 (1Q20) was announced on Friday, April 17th. Overall, in 1Q20, production across Vale's businesses suffered limited impact due to the COVID-19 pandemic.

Sales volumes of iron ore fines and pellets reached 59.0 Mt, in line with production in 1Q20. The share of premium products totalled 87% in 1Q20.

Vale's iron ore fines production totalled 59.6 Mt, therefore below the production guidance of 63-68 Mt for 1Q20. The main causes for that result are: (i) losses of 4.5 Mt in the Northern System from (a) unscheduled maintenance of the long distance conveyor belt at S11D; (b) concentrated, stronger-than-usual weather-related conditions, especially in March; (c) operational restrictions at the Northern Range connected to the postponement of the startup of the new Morro 1 mining section; (ii) losses of 1.8 Mt from lower third-party purchases, due to reduced availability caused by the heavy rains in the southeast of Brazil; and (iii) losses of 2.1 Mt from a number of operational issues in the Southeastern System, mainly in the Itabira Complex.

Vale revised its guidance for iron ore fines production in 2020 to 310-330 Mt from 340-355 Mt and its pellet production guidance to 35-40 Mt from 44 Mt.

Vale's sales volume in 2020 may change according to market conditions and Vale's strategy of margin over volume, prioritizing blended products in its portfolio and the replenishment of inventories in 2020 as appropriate.

The company is continuously evaluating the impact of the COVID-19 pandemic on its business and will disclose promptly any further material impact on its operations, supply chain or customer demand.

Download 1Q20 Production Report

See highlights of some of our businesses:

Iron ore

  • Vale’s iron ore fines production 1 totalled 59.6 Mt, therefore below the production guidance of 63-68 Mt for 1Q20.
  • Sales volumes of iron ore fines and pellets reached 59.0 Mt, in line with production in 1Q20.
  • Vale revised its guidance for iron ore fines production in 20204 to 310-330 Mt from 340- 355 Mt and its pellet production guidance to 35-40 Mt from 44 Mt.
Find out more about our iron ore and pellet activities

Nickel

  • Production of finished nickel was strong, for a first quarter, at 53.2 kt.
  • The decline of 6.2% from 4Q19 was mainly due to seasonality and routine scheduled maintenance at PTVI site and at the Matsusaka refinery in 1Q20, along with lower source ore from Canadian and Indonesian operations being processed at the Clydach and Dalian refineries, respectively.
  • Nickel sales volumes were 44.2 kt in 1Q20, 5.9% lower than 4Q19.
Find out more about our nickel activities

Copper

  • Copper production reached 94.5 kt in 1Q20, 4.7% and 0.7% higher than 4Q19 and 1Q19, respectively.
  • Production in 1Q20 was higher than 4Q19 mainly due to higher Sossego volumes after an unscheduled maintenance shutdown in 4Q19.
  • Sales volumes of copper were 89.2 kt in 1Q20, 1.6% higher than 4Q19.
Find out more about our copper activities

Coal

  • Coal production totalled 2.0 Mt in 1Q20, 4.6 % higher than in 4Q19.
  • In march, Vale’s production reached 918 kt, a record for the past fifteen months.
  • Coal sales totalled 1.6 Mt in 1Q20, 23.3% lower than in 4Q19, mainly due to lower demand, an impact of the COVID-19 pandemic.
Find out more about our coal activities

1Q20 Financial Report

The 1Q20 financial report will be released on April, 28th. On April 29th, some of our key executives will participate in webcasts in portuguese and in english with investors to present the quarter’s results. Click here to learn more about webcasts.