Vale hits new record for iron ore output

Vale hits new record for iron ore output

Brazilian miner Vale (NYSE:VALE), the world’s biggest producer of iron ore, reached a new annual output record, producing 349 million tonnes over 2016.

The figure exceeded Vale’s own guidance output, which was expected to be at the low end of a range between 340-350 million tonnes, with the results indicating a strong performance in Brazil’s northern mines.

The record production figures were also largely influenced by the opening of the S11D mine in North-Western Brazil, Vale’s largest ever iron ore facility in operation.

The record results for production of the steelmaking ingredient were announced in Vale’s 4th quarter production report, which reported a 4.5% rise to 92.4 million tonnes, compared to the same period in 2015.

The Rio De Janeiro-based company will continue to reduce costs and output at its mines in the state of Minas Gerais, while boosting production across its operations in northern Brazil, where costs are lower.

The future is bright for Vale, as when the S11D mega mine reaches full production output in 2018, the company expects to reach an annual iron ore production rate of 400 million tonnes.