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Vale's Iron-Ore production nosedives 33.8% in Q2 2019

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RIO DE JANEIRO (Scrap Register): Brazil's Vale said that its second-quarter iron ore production tumbled almost 34% from a year ago as many of its key dams remained all or partially shut down following a deadly dam burst in January.

At the same time, Vale reaffirmed its previous full-year iron ore and pellets sales outlook forecast at between 307-million to 332-million tonnes.

Vale´s iron ore fines production totaled 64.1 Mt in Q2 2019, 12.1% and 33.8% lower than Q1 2019 and Q2 2018, respectively. Vale pellet production totaled 9.1 Mt in Q2 2019, 25.5% from previous quarter and 29.3% year-on-year, mainly as a result of the impacts following the Brumadinho dam rupture and the unusual weather-related conditions in the Northern System in April and early May.

Iron ore fines and pellet sales volume was 70.8 Mt in the second quarter of 2019, 4.5% higher than in Q1 2019 and 18.2% lower than Q2 2018. Although the production volumes decreased quarter over quarter, sales volumes increased 3.2 Mt due to the consumption of offshore inventories.

The company said it had made "substantial progress" regarding the stopped 93 million tonnes of iron ore production capacity, with its Brucutu operation in Brazil resuming on June 22 and bringing back 30Mt per annum capacity.

Vale expected 30Mtpa of dry processing production would gradually resume, starting by the end of this year, and the remaining 30Mtpa would return in about two to three years.

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