Brazil Miner Vale Sees Drop in Iron Ore and Copper Output, Lower Earnings

Written by Amir Richani for IIR News Intelligence (Sugar Land, Texas)

Summary

Vale reported lower year-on-year net income, iron ore and copper production in third-quarter 2026, while nickel operations remained strong. Despite setbacks, Vale expects to meet its production guidance for 2026.

53% Year-Over-Year Drop in Quarterly Net Income

Brazilian miner Vale reported lower year-over-year attributable net income and iron ore and copper production in the third quarter. According to the company's report, released October 30, Vale registered an attributable net income of US$1.26 billion, a 53% year-on-year drop, driven partly by higher income tax and Samarco-related provision adjustments. Adjustments to Samarco-related provisions reduced proforma net income by US$322 million. These provisions relate to compensation, environmental remediation and litigation liabilities arising from the 2015 Mariana dam collapse.

Vale produced 88.4 million tonnes of iron ore in the third quarter, a 6% year-on-year drop driven by lower runs at the Serra Norte and Serra Leste mines as a result of operational constraints, which led to a yearly output decline of 27%.

Additionally, the company's Southern System mines recorded a 5% year-over-year production drop following the suspension of the Fabrica and Viga operations in January 2026 at the Paraopeba assets. Fabrica resumed operations in September. Operations at the Vargem Grande complex helped to offset some of the losses, increasing its production by 18% compared to the same period in 2025.

Vale's iron ore pellet production, however, increased 7% year on year to reach 8.6 million in the just-ended quarter, thanks to higher feed availability from Brucutu and Itabira.

Despite the lower production, Vale expects to meet the lower end of its iron ore production guidance for 2026, which stands between 335 and 345 million tonnes. For pellets, the company said it is confident of reaching the midpoint of the 30 million-to-34 million tonne guidance set for 2026.

Copper and Nickel Production

In the copper segment, Vale recorded volumes of 85,500 tonnes in the just-ended quarter compared with 90,800 tonnes in third-quarter, due to lower production from its Canadian and Brazilian assets. In Brazil, the Sossego copper mine saw output decline from 19,300 tonnes in third-quarter 2025 to 10,100 tonnes in third-quarter 2026 due to the ongoing mill rebuild, which began in August and is expected to be completed in the second half of November.

Meanwhile, in Canada, the decline was mainly driven by Voisey's Bay mill maintenance, which was brought forward to July.

Despite the third-quarter production setbacks, Vale said it expects to reach the upper half of its copper production guidance of 360,000 to 380,000 tonnes for 2026.

Unlike iron ore and copper, Vale's nickel production increased by 6% in the just-ended quarter compared with the same period last year to reach 49,700 metric tonnes, driven largely by stronger operations at the Sudbury refinery in Canada and Onca Puma's second furnace in Brazil. For 2026, the company expects to produce between 185,000 and 200,000 tonnes of nickel.

Capital Investments and Projects

Vale reported capital investments of US$1.25 billion in the third quarter, on par with the same period last year and 11% higher than in the second quarter. Between January and September, Vale's capital expenditure totaled US$3.4 billion across its projects and mines; it is expected to meet the lower end of its US$5.4 billion-5.7 billion guidance range.

According to Industrial Info Resources data, there are 209 Vale-owned projects worldwide, totaling US$22.92 billion. Of those, 23 grassroot projects, including new copper and iron ore mines, could support future production growth.

Key Takeaways

• Vale reported an attributable net income of US$1.26 billion, 53% lower than the same period last year.
• Vale produced 88.4 million tonnes of iron ore, a 6% year-on-year decline.
• Nickel production stood at 49,700 tonnes, a 6% increase compared to Q3 last year.

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