Vale : 2Q16 Production Report

​Vale reached 86.8 Mt of iron ore production in the second quarter of 2016 (2Q16), 9.3 Mt higher than in 1Q16, mainly due to the good performance of the Northern System.​

Carajás achieved a production record for a second quarter of 36.5 Mt in 2Q16, representing an increase of 4.9 Mt (or 15.5%) in relation to 2Q15, mainly due to the increase in the overall equipment efficiency of the truck fleet and the ramp-up of the N4WS and N5S extension pits.

Pellet production, excluding Samarco's attributable production, reached 10.0 Mt in 2Q16, 12.4% and 17.9% lower than in 1Q16 and 2Q15, respectively, mainly as a result of (i) the halt of the Fábrica pelletizing plant, due to delays in obtaining environmental permits for the expansion of adjacent mines; and (ii) the scheduled maintenance stoppages at the Tubarão plants in 2Q16. Tubarão 8 production achieved the monthly record of 637 kt in May.

Global Recovery (GR), measured by final production output divided by the total tons extracted, reached 39% in 2013, 41% in 2014 and 46% in 2015. On a quarter-on-quarter basis, GR increased from 45.4% in 2Q15 to 46.1% in 2Q162.

Nickel production reached a record for a second quarter of 78,500 t in 2Q16, representing an increase of 11,400 t in relation to 2Q15, mainly due to the stronger operational performance from PTVI and the ongoing ramp-ups of Long Harbour and Vale New Caledonia (VNC).

Copper production reached a record for a second quarter of 107,400 t in 2Q16, representing an increase of 2,500 t in relation to 2Q15, mainly due to the better operational performance at Sudbury and the successful ramp-up of Salobo.

Gold production reached a record for a second quarter of 109,000 oz in 2Q16.

Coal production totaled 1.5 Mt in 2Q16, 9.5% and 25.2% lower than in 1Q16 and 2Q15, respectively, mainly due to the lower production at Carborough Downs as a result of geological instability issues in 2Q16.

In June, the total mine movement in Mozambique reached a new monthly record of 12.7 Mt due to higher equipment productivity and the development of new mining areas which will feed the Moatize II coal handling and preparation plant. Commissioning of the Moatize II plant is almost concluded and its start-up is expected by early August. The ramp-up of Moatize II will enable the increase in production and the reduction in costs in the next quarters.