RIO DE JANEIRO--Brazilian mining major Vale SA, the world's
biggest iron-ore producer, said Thursday its output of the key
steelmaking ingredient rose in the third quarter and is on track to
set a record for the year despite plunging prices.
Vale's production of iron ore rose 3.1% from the third quarter
of 2013 to 85.73 million metric tons, thanks to successful ramp-ups
of its operations at the Amazonian mining complex of Carajas and
elsewhere. Through the first nine months of 2014, the company's
iron-ore output was up 8.1% at 236.24 million tons, the highest
ever.
Vale's main expansion projects have started bearing fruit in
recent quarters after years of delays. But that means that the
company is now increasing its production even as prices for iron
ore, Brazil's most lucrative export, have tumbled in recent months.
The commodity is now hovering about 40% below its year-ago
price.
Vale's shipments of iron ore declined by 3.6 million tons in the
third quarter because of protests at its cargo railroad out of
Carajas in September. As a result, the company's global stocks of
the raw material rose by 9.3 million tons in the third quarter.
The firm said its output of other metals also rose.
Production of nickel, of which Vale is the world's No. 2
supplier behind Russia's MMC Norilsk Nickel, rose 16% in the third
quarter from a year earlier to 72,100 tons after the company
brought its long-troubled Onça Puma nickel mine in Brazil online
this year. Vale also increased its nickel production in Canada.
Vale's copper output rose 11% to 104,800 tons on higher output
in Brazil and Canada.
Coal production slipped 1.5% to 2.34 million tons.
Vale is expected to release its third-quarter financial results
later this month.
Write to Paul Kiernan at paul.kiernan@wsj.com
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