2Q20 Production Report

Business

2Q20 Production Report

Vale´s production Report for the second quarter of 2020 (2Q20) was announced on Monday, July 20th. Vale faced a challenging 2Q20, which combined the efforts to ramp up production, affected by COVID-19, with strong measures to protect our employees and support communities amid the pandemic.

Iron ore fines production accelerated towards the end of the quarter, totalled 67.6 Mt, with June production at 25.1 Mt, a 23% increase in comparison to the previous 5-month average, as it enters a seasonally stronger period with growing run rates. Sales volumes of iron ore fines and pellets reached 61.6 Mt in 2Q20, 8% below production, mainly due to logistics lead time between production and CFR sales, with part of 2Q20 production on the move for sale in the coming quarter.

Vale’s guidance for iron ore fines production in 2020 is unchanged, at 310-330 Mt. Vale’s guidance for pellet production in 2020 was revised to 30-35 Mt from 35-40 Mt.

Vale remains cautious amid the COVID-19 pandemic, fully committed to the safety measures adopted at its sites and the resumption and stabilization of production under the highest safety conditions.

Download 2Q20 Production Report

See highlights of some of our businesses:

Iron Ore and pellets

  • Vale’s iron ore fines production totalled 67.6 Mt, with June production above 25 Mt, displaying strong acceleration from April and May levels.
  • Vale’s guidance for iron ore fines production in 2020 is unchanged, at 310-330 Mt, assuming the lower end of the guidance as the most likely scenario.
  • Sales volumes of iron ore fines and pellets, with a premium of US$ 7.5/t, reached 61.6 Mt in 2Q20, 8% below production.
Find out more about our iron ore and pellet activities

Nickel

  • Production of finished nickel reached 59.4 kt in 2Q20.
  • Nickel sales reached 42.4 kt in 2Q20, 4.1% lower than 1Q20. The lower sales volumes were mainly due to continued weak demand derived from economic conditions brought about by the COVID-19 pandemic.
  • The nickel business reached 94.2 kt 1H20 production volume ex-VNC, well positioned to reach the 180-195 kt guidance for 2020, even when considering the expected lower 3Q20 production volumes due to postponed maintenance.
Find out more about our nickel activities

Coal

  • After reaching a coal production record in March, compared to the previous 15 months, Vale decelerated production in Moatize, starting in April.
  • A production loss of approximately 1 Mt was recorded in 2Q20.
  • It is not possible to provide a new coal production guidance for 2020.
Find out more about our coal activities

Copper

  • Copper production reached 84.5 kt in 2Q20, lower than previous periods, mainly due to the COVID-19 impacts.
  • The copper business produced 179.0 kt in 1H20 and is also on track to reach the 360-380 kt production guidance for 2020.
  • Sales volumes of copper were 83.5 kt in 2Q20, 6.4% lower than 1Q20 mainly reflecting Voisey’s Bay mine being placed in care and maintenance during the quarter due to the COVID19 pandemic.
Find out more about our copper activities

2Q20 Financial Report

The 2Q20 Financial Report will be released on July 29th. On July 30th, 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.