[Fellow]Iron ore fines production totaled 64.1 Mt in 2Q19, 12.1% and 33.8% lower than 1Q19 and 2Q18.
Vale S.A (“Vale”) iron ore fines production and sales showed a substantial improvement in the end of 2Q19 with the increase in shipments in the Northern System and the resumption of Brucutu operations. The combined effects of both events will be felt more considerably in 2H19.
Iron ore fines production totaled 64.1 Mt in 2Q19, 12.1% and 33.8% lower than 1Q19 and 2Q18, respectively, mainly as a result of the impacts following the Brumadinho dam rupture and the unusual weather-related conditions in the Northern System in April and early May.
As a result of the successful S11D ramp-up, the Northern System achieved a run rate of 215 Mtpy in June and expects to produce around 18.5 Mt to 19.0 Mt per month in 2H19 reaching the 230 Mtpy run rate.
Copper production reached 98,300 t in 2Q19, 4.8% higher than 1Q19 and in line with 2Q18. Production increased mainly due to higher grades in the Salobo operations and strong performance at Sudbury.
Sales volumes of copper reached 95,000 t in 2Q19, 5.1% higher than in 1Q19, reflecting higher production volumes and commercial initiatives to reduce inventories. Sales volumes are lower compared to production volumes due to payable copper vs. contained copper content: part of the copper contained in the concentrates is lost in the smelting and refining process, hence payable quantities of copper are approximately 3.5% lower than production volumes.
Coal production totaled 2.4 Mt in 2Q19, 7.1% higher than in 1Q19 as a result of less rains in comparison to 1Q19. Despite being higher than in 1Q19, 2Q19 production was affected by the lower ROM quality which impacted the yield at the processing plant, as well as higher maintenance at those plants.
Although the quarterly production was affected by the ROM grade quality at the mining sections being opened, mine fleet availability has reached 80% in June, averaging 77% in 2Q19 vs. 72% in 1Q19. Consequently, total tons moved increased 18% quarter over quarter at the mine. Coal sales totaled 2.1 Mt in 2Q19, 12.6% lower than production in the same period, as a result of an increase of sales with DAP and DAT INCOTERMs. (Vale)
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