Vale announced that in Q2 pellet production reached 14.3 Mt in Q2 of 2012, an increase of 12.3% compared to the previous quarter and 8.5% higher than Q1 of 2012, being a new historical record. The ramp-up of the
Oman plants was the main reason for the good year-over-year performance.

Oman operations delivered 1.6 Mt of direct reduction pellets in Q2 of 2012, 12.6% higher than previous quarter. In Q2 of 2012, the output of the Tubarão I & II plants reached 1.5 Mt, an increase of 44.1% over 1Q12, reflecting the resumption of operation after a maintenance stoppage in Q1 of 2012.

The production of Fábrica was 5.4% higher than 1Q12, but 3.6% lower than Q1 of 2012, still reflecting shortage in pellet feed availability.
Vargem Grande production had an increase of 68.2% on a quarter-over-quarter basis and 4.7% on a yearly basis, recovering from the operational problems faced in mills #1 and #2 in 1Q12.

The output of São Luís was 1.4 Mt in Q2 of 2012, an increase of 42.7% compared to the previous quarter and 1.7% higher than the same quarter of last year, showing recovery in demand.

In Q2 of 2012, Nibrasco had a decrease of 12.4% over 1Q12 and 13.7% over Q1 of 2012, due to the maintenance stoppage in the quarter.

Kobrasco production was 10.5% and 25.6% above Q1 of 2012 and Q2 of 2011, respectively, reflecting a greater supply of pellet feed in Q2 of 2012 and the recovery from last year’s maintenance stoppage.

The attributable production of the three pellet plants of the 50%-owned Samarco JV was in line with the previous quarter, but 4.8% lower than Q2 of 2011 due to a maintenance stoppage.

Source - SRI

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