Vale´s Production Report for the second quarter of 2022 (2Q22) was
released on Tuesday, July 19th. Iron ore production increased 17% q/q
to 74.1 Mt, mainly driven by the Southeastern and Southern Systems’
solid performance into the dry season. Northern System production
improved 4% q/q, benefiting from favorable weather seasonality with
partial offset by one-off stockpiles homogenization activities in
Ponta da Madeira to adjust for moisture levels.
As a result of this one-off event, the sale of our Midwestern System
(~3.5 Mt) and in order to account for greater flexibility in our
production due to current market conditions, Vale is revising its
annual production guidance for 2022 to 310-320 Mt. The revised
guidance is in line with our value over volume philosophy.
Nickel production was 24% lower q/q mostly due to scheduled
maintenance of our downstream facilities, which was partially offset
by strong performance at Onça Puma. Sales were largely in line q/q as
inventories built in 1Q22 were sold in 2Q22.
Copper production was in line with Q1 as the effect of Sossego SAG
mill resumption in early June and stronger performance of Canadian
mines were offset by both planned and corrective maintenance at Salobo
plant.