Vale Scores Lower Net Income Despite Higher Copper, Nickel, Iron Ore Production

Researched by Industrial Info Resources (Sugar Land, Texas)--Vale SA (NYSE:VALE) (Rio de Janeiro, Brazil) saw its net income drop by 78% during the second quarter of 2023 compared to the corresponding period of last year, due to lower commodity prices.

Vale reported net income of US$892 million in the just-passed quarter, compared to more than $4.1 billion during the period last year. Among the key reasons for the drop were lower iron ore and nickel prices and the appreciation of the Brazilian real.

Despite the lower financial results, Vale registered stronger nickel, iron ore, and copper output this quarter compared to second-quarter 2022. During this year's second quarter, Vale produced 78.7 million metric tons of iron ore, about 6.3% more than last year. Similarly, the company reached volumes of 78,800 metric tons of copper and 36,700 metric tons of nickel, about 41% and 7.9% higher than the same period last year, respectively.

The boost in iron ore production was due to a record output from the S11D project in Brazil's Para state. The mine registered an output increase of 2.6 million tons year on year due to better asset reliability and the installation of new crushers in 2022. This is 17.4% more iron ore than the volumes in second-quarter 2022. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals plant database can view the profile of the S11D mine.

On the copper front, Vale's stronger output resulted from the ramping up at Salobo III and better performance at the Sossego mine. The start-up of Salobo III led to a copper production boost of 13,100 tons year on year, despite maintenance at Salobo I and II. The Salobo project has reserve of 1.15 billion tons, and it produced 42,700 metric tons of copper in Q2, 30.2% more than 2Q2022. Subscribers can view the plant profiles for the Salobo and Sossego mines.

Meanwhile, the Sossego copper mine also increased its output by 9,600 tons year on year due to better performance and maintenance at the mine that impacted its production during the second quarter of last year.

Moreover, nickel output stood at 3,500 tons higher yearly due to better operations at Sudbury in Canada. During the same period last year, the mine underwent a maintenance shutdown for almost a month, affecting its operations. Click here for the Sudbury profile.

Finally, the mining company has announced a program to invest between US$25 billion to US$30 billion in the next 10 years, aiming to increase copper production from 350,000 tons per year to 900,000 tons per year and nickel output from 175,000 tons per year to 300,000 tons per year. The investments will be destined for projects in Canada, Brazil and Indonesia.

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 over 200,000 current and future projects worth $17.8 trillion (USD).