Vale Sees Rise in Nickel and Copper Output in 3Q Amid Maintenance Challenges

Vale

Brazilian multi-metals mining group Vale reported a year-on-year increase in nickel production for the third quarter of 2024, driven primarily by higher output from its Canadian mines, including Sudbury and Voisey’s Bay. However, the company’s total production for the first nine months of the year was slightly down compared to the same period in 2023, largely due to longer-than-expected maintenance shutdowns at several key mines.

Nickel Production Boosted by Canadian Mines

Vale's nickel production rose by 12% year-on-year, reaching 47,100 tonnes during the July-September period. However, the total production for the first nine months of the year was 4.7% lower than in 2023, with 114,400 tonnes of nickel produced. A significant contributor to the growth was the Sudbury mine, where finished nickel production increased by 84% year-on-year, reaching 12,300 tonnes. This was primarily due to the resumption of smelting and refining operations at Sudbury, following its biennial maintenance shutdown.

In addition, production at Voisey’s Bay saw a significant increase, rising by 56.4% year-on-year to 6,100 tonnes, thanks to higher nickel grades following extended maintenance work. Vale also reported a 55% increase in production from its Thompson mine, which reached 3,100 tonnes.

Challenges and Power Disruption in Brazil

In Brazil, production from the Onça Puma mine increased by 7% to 6,200 tonnes, following a furnace rebuild. However, the mine experienced a power disruption after a severe windstorm damaged a local utility company's transmission line, which impacted operations. Despite this, Vale's performance in Brazil’s nickel sector remained robust.

Indonesia and Third-Party Contributions

Vale’s nickel production from Indonesia saw a dramatic rise, nearly tripling year-on-year to 19,300 tonnes in the third quarter. This increase was driven by the offtake from third-party suppliers and production from its subsidiary, PT Vale Indonesia.

Copper Production Up Despite Setbacks at Salobo Mine

Vale’s copper production also saw growth, with a 5.3% increase in the third quarter, reaching 85,900 tonnes. Over the first nine months of the year, copper output rose by 8.3% to 246,300 tonnes. At the Salobo mine in Brazil, production was impacted by a conveyor belt fire at Salobo’s third plant, which led to a 6% decline in output. However, higher production at its other two plants helped mitigate the losses.

The Sossego mine also performed well, with production rising by 15.2% to 19,700 tonnes, thanks to stronger output and improved feed grades after the mine’s operational license was reinstated in June.

In Canada, Vale’s copper production surged by 31.5% to 19,600 tonnes, further contributing to the overall rise in copper production for the quarter.

Production Guidance for 2024

Vale has maintained its production guidance for 2024, with an expected output of 153,000-168,000 tonnes of nickel and 320,000-355,000 tonnes of copper.