Thursday, January 22, 2009

Vale Iron Ore Output Down 21 Percent In Q4

Brazilian miner Vale's iron ore fell 21% to 63.3 million tonnes (mt) in the last quarter of 2008, the company said on Thursday. Total output in 2008 slipped 0.5% from the previous year to 302Mt, the first time since 2000 the company's production has dropped.

"From 2001-07 iron ore output grew at an average annual rate of 13.4% as a consequence of productivity gains and large investments to increase capacity," Vale's annual production report said, adding several mines in Minas Gerais state have been shut down due to dwindling demand caused by the global financial crisis.

The Carajás mine in Pará, northern Brazil was the company's top performer with a record output of 96.3Mt in 2008, up 5.2% compared to 2007.

The company's pellet feed output in 2008 was roughly the same as the year before, totaling 44.8Mt.

Manganese production soared by 78.7% to 2.38Mt while ferroalloy production fell 12.4% to 475,000t.

In non-ferrous minerals, nickel production reached a record of 275,400t, up 11%. Copper rose 9.6% to 311,600t from 284,400t.

Bauxite production jumped 27.6% to 11.6Mt, the main reason for increase being the expansion of the Paragominas mine in Pará which added 4.5Mt to the existing capacity. Expansion was completed in May.

Alumina also showed record numbers as production exceeded 5Mt, a 18% rise. However, aluminum output dipped 1.5%, mostly due to the closure of the company's Valesul smelter in Rio de Janeiro state.

Metallurgical coal went up 59.2% to 2.80Mt and thermal coal rose 192% to 1.28Mt.

Headquartered in Rio de Janeiro, Vale is the world's largest iron ore producer. The company will report its 4Q08 earnings on February 19.

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