Brazilian mining giant Vale SA has lowering its iron ore production guidance for this year and issuing a lower-than-expected projection for next year. Vale now expects to produce 315-320 million tonnes this year, compared with previous guidance of 315-335 million tonnes. Next year, Vale anticipates 320 million tonnes n to 335 million tonnesThe Rio de Janeiro-based company recovery from an early-2019 tailings dam collapse that led to a series of cutbacks makes it a major swing factor on the supply side. Monday’s guidance may support a recent rebound in iron ore futures amid optimism over restocking by Chinese mills.Vale is looking to expand its annual production capacity to 400 million, which could make it the world’s No. 1 iron ore producer once again, a title it lost to Rio Tinto Group in the wake of the Brumadinho dam disaster. In September, Vale postponed the capacity goal from 2022 to “medium term” partly because of sluggish permitting in northern Brazil.
Brazilian mining giant Vale SA has lowering its iron ore production guidance for this year and issuing a lower-than-expected projection for next year. Vale now expects to produce 315-320 million tonnes this year, compared with previous guidance of 315-335 million tonnes. Next year, Vale anticipates 320 million tonnes n to 335 million tonnesThe Rio de Janeiro-based company recovery from an early-2019 tailings dam collapse that led to a series of cutbacks makes it a major swing factor on the supply side. Monday’s guidance may support a recent rebound in iron ore futures amid optimism over restocking by Chinese mills.Vale is looking to expand its annual production capacity to 400 million, which could make it the world’s No. 1 iron ore producer once again, a title it lost to Rio Tinto Group in the wake of the Brumadinho dam disaster. In September, Vale postponed the capacity goal from 2022 to “medium term” partly because of sluggish permitting in northern Brazil.
