Iron ore price, page-22808

Vale. June Quarter results IRON ORE PRODUCTION1 -7.1% (YoY) IRON ORE SALES2 -9.4% IRON ORE AND PELLETS SALES -13.0%
COVID 19 impacts cited, as well as dam closures. S11D a "bright spot", despite the nearby caronavirus hotspots.

H12020 production 127,203 Mt

Rainy season starts in November, and will slow things down.

On my estimates : annual production: 260 mt- well below the low end of the 310-330 mt annual target they have set for CY 2020.

IO price will rise on this.

https://steelguru.com/mining/vale-iron-ore-production-sales-in-q2-of-2020/561413#tag

Vale Iron Ore Production & Sales in Q2 of 2020

Mining News - Published on Wed, 22 Jul 2020

Image Source: Vale Coronavirus COVID19

Northern System - In June, S11D achieved a solid performance of 91 million tonne per year run rate, expected to improve further in 2H20, producing slightly above 85 million tonne in 2020. Vale also received authorization to resume operations at Eastern Range (Serra Leste), with 6 million tonne per year of production capacity. Maintenance works are ongoing for a safe resumption, expected for 4Q20. Vale's Northern System improved its operational performance in 2Q20 after unusual weather conditions in 1Q20, partially offset by

(i) Operational restrictions at Northern Range from the postponement of the new Morro 1 mining section start-up
(ii) A 16-day4 scheduled and unscheduled maintenance period of the long-distance conveyor belt at SI ID
(iii) Impacts related to the COVID-19 pandemic.

Southeastern System - Southeastern System's improved operational performance in 2Q20 was mainly due to better performance at Alegria Complex and to the restart of Timbopeba dry-processing operations in June, partially offset by the temporary stoppage of Itabira Complex for 12 days in June and the stoppage of Fazendao mine for a full quarter due to depletion of the licensed mining area in February and setting-up for restarting by 3Q20. Vale is applying to expand the licensed mining area of Fazendao; the granting of the concession is expected by the end of July 2020 and will enable the restart of operations. The Conceicao plants are using tailings filtration and tailings disposal at the On?a and Periquito pits as a short-term alternative for the Itabiruu dam stoppage. These alternatives are expected to continue in 2H20 and part of 2021, limiting Conceicao plants production capacity.

Southern System - Superior operational performance in the Southern System in 2Q20 can be mainly attributed to higher production from Vargem Grande Complex and also larger third-party purchases. In 2Q20, wet processing production at the Vargem Grande Complex partially resumed with tailings filtration, using the Maravilhas I dam and Cianita waste dump as a preliminary solution for tailings disposal. The start-up of tailings disposal at Maravilhas III dam as a lasting solution was postponed to 2Q21 from 4Q20 mainly due to COVID-19 related impacts. Wet processing allows for an improvement on the average quality of Vale's portfolio. Increases in production volumes depend on the capacity to flowing production through the TFA5 rail terminal.

Operational resumption - plan Actions for resuming Timbopeba. Fabrica, Vargem Grande and Brucutu sites are under implementation, in collaboration with the National Mining Agency ANM, the Public Prosecutor's Office of the Minas Gerais State MPMG and the external audit firms. COVID-19-related impacts on the works in Timbopeba, Fabrica and Vargem Grande Complex, mentioned below, reflect lower levels of personnel at construction sites and, accordingly, slower work progression. The pace of works should also be slowed down in the rainy season, expected to start in November.

Vale Iron Ore

000 metric tons	2Q20	1Q20	QoQ	2Q19	YoY	1H20	1H19	YoY
Northern System	42,463	39,900	6.4%	41,576	2.1%	82,363	82,591	-0.3%
Northern and Eastern ranges	24,319	21,480	13.2%	25,838	-5.9%	45,799	48,867	-6.3%
S11D	18,144	18,420	-1.5%	15,738	15.3%	36,564	33,724	8.4%
Southeastern System	12,721	11,789	7.9%	15,856	-19.8%	24,510	35,434	-30.8%
Itabira (Caue, Conceigao and others)	5,324	6,007	-11.4%	8,774	-39.3%	11,331	18,066	-37.3%
Minas Centrais (Brucutu and others)	4,190	3,649	14.8%	5,243	-20.1%	7,839	10,434	-24.9%
Mariana (Alegria, Timbopeba and others)	3,207	2,133	50.4%	1,839	74.4%	5,340	6,934	-23.0%
Southern System	11,768	7,356	60.0%	6,173	90.6%	19,124	17,949	6.5%
Paraopeba (Mutuca, Fabrica and others)	5,873	3,648	61.0%	5,736	2.4%	9,521	12,531	-24.0%
Vargem Grande (Vargem Grande, Pico and others)	5,895	3,708	59.0%	436	1252.1%	9,603	5,416	77.3%
Midwestern System	645	559	15.4%	451	43.0%	1,204	952	26.5%
Corumba	645	559	15.4%	451	43.0%	1,204	952	26.5%
IRON ORE PRODUCTION1	67,598	59,605	13.4%	64,057	5.5%	127,203	136,927	-7.1%
IRON ORE SALES2	54,615	51,656	5.7%	61,945	-11.8%	106,271	117,361	-9.4%
IRON ORE AND PELLETS SALES	61,565	58,967	4.4%	70,787	-13.0%	120,532	138,517	-13.0%