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Vale reports record Q1 coal production

BRAZILIAN giant Vale has reported its best first quarter of coal production at 1.8 million tonnes...

Tim Treadgold
Vale reports record Q1 coal production

Vale said the performance of its Australian operations, in particular Carborough Downs, more than offset the fall in Moatize’s output.

In February, Vale declared force majeure on a number of its coal sales contracts in the wake of high rainfall in Mozambique.

While the suspension was later lifted in March, the inundation created serious challenges to the Linha do Sena railway, causing an estimated loss of 500,000t in its coal shipments.

As a result, production from Moatize was 16.8% below that in Q1 2012.

Despite being a first quarter high, overall production for the quarter was down 10.2% on the last quarter of 2012.

Due to seasonal factors, the first quarter for Vale is regarded as the weakest of the year as production is hampered by the rainy season in the southern hemisphere, affecting iron ore, manganese, copper and coal output.

Production of metallurgical and thermal coal at Vale’s Integra mine in New South Wales in Q1 2013 was 218,000t and 24,000t, respectively.

Integra’s metallurgical coal output increased by 76% against Q1 2012 but decreased when compared to Q4 2012 due to the stoppage of longwall XI in response to poor geological

conditions.

Vale said better operational performance was expected for Q2 2013 because the company concluded the installation of longwall XII this month.

Thermal coal production decreased from the last quarter, reflecting the rainy season in Australia.

Production of other Australian mines was 283,000t in the quarter, rising 11.7% against the last quarter of 2012.

Vale reported weaker iron ore production but production of copper and cobalt reached all-time highs for the company.

Iron ore production fell from 85.49Mt in the December 2012 quarter to 67.53Mt in the March quarter.

Year-on-year, the result was also below output of 70Mt recorded in the first quarter of 2012.

“This year, rainfall in our iron ore mining sites in Brazil was in line with its seasonal pattern, being more concentrated on the coastal regions, raising challenges for the operation of our maritime terminals,” Vale said in a statement.

While iron ore wasn’t the standout performer for Vale, its base metals assets had a strong quarter.

Nickel had its best first quarter in three years, with output totalling 65,000t, up from 63,000t in the previous corresponding period.

VNC also produces cobalt as a by-product. Output of the commodity reached 372t, almost four times the volume delivered in Q4.

Meanwhile, manganese output totalled 501,000t, up from 484,000t recorded in the previous corresponding period but down from 668,000t recorded in the December quarter.

Copper production tipped in at 90,000t, compared to 81,000t in the December quarter and an improvement on the 73,000t reached in Q1 2012.

Potash output of 120,000t was down from the 161,00t achieved in Q4.

Meanwhile, phosphate rock production of 2Mt, while a record for the first quarter, was slightly down from the 2.06Mt reached in the December quarter.

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