Brazilian mining company Vale increased its iron ore production to 94.4mn t in the third quarter, up by 4pc compared with a year earlier, reaching its highest quarterly output since 2018.
The increase was driven by the S11D project in Carajas, northern Brazil, where output rose to a third-quarter record of 23.6mn t, up by 1.5mn t from a year earlier.
The commissioning of a fourth processing line at Vale's Brucutu operation provided an additional 1.1mn t of iron ore output.
Production was further supported by the ramp-up of the Capanema project, in southeastern Brazil, which achieved its output target of 2.9mn t in the third quarter, after a 22-year shutdown. The mine resumed operations in September, after a five-year renovation project. Vale expects Capanema to add 15mn t/yr to the company's iron ore output once it reaches full capacity.
Vale maintained its guidance for 2025 iron ore production at 325mn-335mn t.
The firm's iron ore sales rose by 5pc on the year to 86mn t in July-September. Vale's iron ore fines prices increased to $94/t in the quarter from $90/t a year earlier. The Argus ICX® 62pc index averaged $101.73/dmt cfr Qingdao for July-September, up from $99.69/dmt cfr Qingdao in the same period a year earlier.
Vale's iron ore pellet production fell by 23pc on the year to 7.9mn t in the third quarter because of subdued market activity. Sales declined by 13pc on the year to 8.7mn t, while prices dropped to $131/t from $148/t in the third quarter of 2024.
