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Released February 27, 2024 | SUGAR LAND
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Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--Brazil-based metals miner Vale SA (NYSE:VALE) (Rio de Janeiro) has reported net income of US$2.41 billion in fourth-quarter 2023 and US$7.98 billion for all 2023. The amounts were 35% and 109% lower than the net income reported for fourth-quarter 2022 and all of 2022, respectively.
Despite the results, the company approved a US$2.4 billion payment in dividends last week, to be disbursed in March.
Among the reasons for the lower income was a provision of US$1.2 billion in the fourth quarter linked to the Samarco dam disaster and a possible settlement agreement with Brazilian authorities related to the 2015 accident. In November 2015, a dam owned by Vale and BHP Billiton Limited (Melbourne, Australia) burst at the Samarco mine, killing 19 people and dumping billions of gallons of toxic sludge into a nearby river. The incident resulted in one of Brazil's worst environmental disasters.
Higher income taxes in 2023 also impacted the company's financial performance.
The financial results were backed by higher output of iron ore, pellets and copper production throughout 2023. Last year, Vale's iron ore output stood at 321 million metric tons, a 4.3% year-over-year increase and above the 2023 guidance. For 2024, the company has set an iron ore production guidance of between 310 million and 320 million metric tons.
"In that sense, our 2023 production at 321 million tons exceeded expectations and provided evidence of increased asset and process reliability," Vale Chief Executive Officer Eduardo De Salles Bartolomeo said during the company's quarterly earnings conference call.
By 2026, Vale expects to produce between 340 million and 360 million metric tons of iron ore by developing the Vargem Grande Complex expansion, the Capanema project, and the S11D plus 20 expansion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for Vargem Grande-related project reports, click here for those related to the Capanema project, and click here for S11D project reports.
The company's iron ore pellet output in 2023 stood at 36 million metric tons and copper volumes at 326,600 metric tons, representing a year-over-year increase of 13.5% and 29%, respectively.
The stronger copper production aligns with the company's goal to strengthen its critical metals mining position. "We delivered a remarkable output in copper, an outstanding 50% increase quarter-on-quarter driven by the successful ramp-up of Salobo III and improved performance at Salobo I and II plants," said Bartolomeo.
Based on Vale's report, the three plants at Salobo have a combined output above 32 million tons per annum (Mtpa), with an expected boost to 36 Mtpa by the last quarter of this year. Subscribers can click here for the related plant profile.
Nickel output last year stood at 164,900 metric tons, about 7.9% lower than in 2022 but within the guidance set by the company.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
Despite the results, the company approved a US$2.4 billion payment in dividends last week, to be disbursed in March.
Among the reasons for the lower income was a provision of US$1.2 billion in the fourth quarter linked to the Samarco dam disaster and a possible settlement agreement with Brazilian authorities related to the 2015 accident. In November 2015, a dam owned by Vale and BHP Billiton Limited (Melbourne, Australia) burst at the Samarco mine, killing 19 people and dumping billions of gallons of toxic sludge into a nearby river. The incident resulted in one of Brazil's worst environmental disasters.
Higher income taxes in 2023 also impacted the company's financial performance.
The financial results were backed by higher output of iron ore, pellets and copper production throughout 2023. Last year, Vale's iron ore output stood at 321 million metric tons, a 4.3% year-over-year increase and above the 2023 guidance. For 2024, the company has set an iron ore production guidance of between 310 million and 320 million metric tons.
"In that sense, our 2023 production at 321 million tons exceeded expectations and provided evidence of increased asset and process reliability," Vale Chief Executive Officer Eduardo De Salles Bartolomeo said during the company's quarterly earnings conference call.
By 2026, Vale expects to produce between 340 million and 360 million metric tons of iron ore by developing the Vargem Grande Complex expansion, the Capanema project, and the S11D plus 20 expansion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for Vargem Grande-related project reports, click here for those related to the Capanema project, and click here for S11D project reports.
The company's iron ore pellet output in 2023 stood at 36 million metric tons and copper volumes at 326,600 metric tons, representing a year-over-year increase of 13.5% and 29%, respectively.
The stronger copper production aligns with the company's goal to strengthen its critical metals mining position. "We delivered a remarkable output in copper, an outstanding 50% increase quarter-on-quarter driven by the successful ramp-up of Salobo III and improved performance at Salobo I and II plants," said Bartolomeo.
Based on Vale's report, the three plants at Salobo have a combined output above 32 million tons per annum (Mtpa), with an expected boost to 36 Mtpa by the last quarter of this year. Subscribers can click here for the related plant profile.
Nickel output last year stood at 164,900 metric tons, about 7.9% lower than in 2022 but within the guidance set by the company.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
