Vale- Production Report 2017

Ferro-Alloys.com: The sources of renowned Manganese Ore producer Vale has confirmed that their production of Manganese Ore were around 2.2 million tonnes in 2017 decreasing 8.3% as compared to 2016. Sales volume reached 1.8 million tonnes in 2017, in line with 2016. Ferroalloy production reached 146,000 tonnes in 2017, increasing 17.7% comparing 124,000 tonnes in 2016. Sales volumes totaled 133000 tonnes, 4.7% higher than in 2016.

Azul mine produced 1.4 million tonnes of Manganese Ore in 2017, 16.4% lower than in 2016, mainly due to the decrease in the grade of the run-of-mine, resulting in lower product recovery. For the same reason, production in 4Q17 was 7.7% and 9.9% lower than in 3Q17 and 4Q16, respectively, reaching 385,000 tonnes.

Production at the Urucum mine totaled 673,000 tonne in 2017, 3.2% higher than 2016 due to higher equipment availability. In 4Q17, production at the Urucum mine reached 178,000 tonne, 11.4% higher than in 3Q17 due to a scheduled maintenance stoppage at the plant in 3Q17, and 6.9% higher than in 4Q16 due to higher availability of the beneficiation plants.

Production at the Morro da Mina mine totaled 81,000 tonne in 2017. In 4Q17, production at the Morro da Mina mine reached 23,000 tonne, 14.5% lower than in 3Q17 due to a scheduled maintenance stoppage in 4Q17, and 3.0% higher than in 4Q16 due to the resumption of activities in October 2016.

Sales volumes for manganese ore totaled 740,000 tonne in 4Q17, 48.6% higher than in 2016 due to the reduction of inventories.

Ferroalloy production in 2017 totaled 146,000 tonne, 17.7% more than 124,000 tonne in 2016, mainly due to higher availability and utilization of furnaces 10 and 11 of Simões Filho; acquisition of competitive electric power for Barbacena plant in December 2016; and resumption of one furnace in Ouro Preto in September 2017.

Production of 2017 was composed of 68,000 tonne of ferrosilicon manganese alloys, 52,000 t of high-carbon manganese alloys and 26,000 t of medium-carbon manganese alloys.

Ferroalloy production in 4Q17 was 35,000 tonne, in line with 3Q17 and 4Q16. Product mix in 4Q17 was comprised of 16,000 t of FeSiMn, 12,000 tonne of FeMnHC and 7,000 tonne of FeMnMC.

Sales volumes for ferroalloys totaled 34,000 tonne in 4Q17, 6.3% higher than in 3Q17.

• [Editor:mab]