Brazil’s Vale reveals record-breaking iron ore production for 2016
Brazilian miner Vale produced a record 349m tonnes of iron ore in 2016, beating its own guidance.
The world's top iron ore producer expected output to be at the lower end of a range of 340m to 350m tonnes, but strong performance at mines in northern Brazil and the successful start of its mammoth S11D mine set it up to outperform.
Full-year production rose one per cent on the previous year as Vale made 92.4m tonnes in the fourth quarter, up 4.5 per cent on the same period in 2015.
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In its mines in the southeastern state of Minas Gerais, Vale continued to halt or reduce higher cost tonnes while offsetting them with cheaper production from northern Brazil where costs are lower and quality higher.
The miner's guidance for 2017 remained at 360m to 380m tonnes, and Vale said by the end of 2018 it expected to reach an annual production rate of 400m tonnes.
Vale's nickel production was also on the rise in 2016. It produced a record 311,000 tonnes, up seven per cent from 2016, after stronger performance at plants in Canada and New Caledonia.
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