Vale SA, the world's largest producer of iron ore, revealed Tuesday it is cutting iron ore production guidance for several reasons including the sale of its Center-West assets, supply chain restrictions and the impact of lower market prices.
Details were outlined in the company's newest quarterly report issued Tuesday.
The company said it anticipates iron ore output for the year to be between 310 million tonnes (Mt) and 320 Mt, down from a previous estimate of 320-335 Mt, according to Vale's 2Q for 2022 production and sales report.
Vale is the largest mining company operating in Sudbury with roughly 4,000 employees. The company operates mines in Greater Sudbury that have produced for more than 100 years.
The company's Q2 report also revealed that "nickel production was 24 per cent lower q/q (quarter over quarter) mostly due to scheduled maintenance of our downstream facilities, which was partially offset by strong performance at Onça Puma (mine in Brazil)".
Mines operated at a steady pace through the quarter, with North Atlantic mines building up feedstock for planned mine-mill maintenance in 3Q22. Sales were largely in line q/q as inventories built in 1Q22 were sold in 2Q22, said the report.
Production from Sudbury-sourced ore was lower q/q mainly due to a 28-day planned maintenance shutdown at the Copper Cliff Smelter and Refinery, which began in early April and reached full production again in June, said the report. Ontario mines’ run rates improved during Q2, allowing for an inventory build-up to cover for planned maintenance across the underground mines and at the Clarabelle mill in Q3, the report said.
The quarterly document also revealed "production of copper from Canadian sourced ore was higher due to improved Sudbury mine run-rates. As indicated in the nickel section, a planned maintenance at Sudbury mines and mill will occur in Q3, in addition to scheduled ground control work. This is expected to have a planned temporary impact on copper production from Canadian operations."
Vale also reported other Canadian nickel results:
- Production from Thompson sourced ore was down q/q due to scheduled maintenance during the quarter at Long Harbour Refinery.
- Production from Voisey’s Bay sourced ore was lower q/q as we proceed on the ongoing transitional period between the depletion of Ovoid mine and ramp-up to full production of the Voisey’s Bay underground project.
