Table of Contents

 

 

 

United States
Securities and Exchange Commission

Washington, D.C. 20549

 

FORM 6-K

 

Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the
Securities Exchange Act of 1934

 

For the month of

 

July 2012

 

Vale S.A.

 

Avenida Graça Aranha, No. 26
20030-900 Rio de Janeiro, RJ, Brazil

(Address of principal executive office)

 

(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)

 

(Check One) Form 20-F x Form 40-F o

 

(Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1))

 

(Check One) Yes o No x

 

(Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7))

 

(Check One) Yes o No x

 

(Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)

 

(Check One) Yes o No x

 

(If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b). 82-      .)

 

 

 



Table of Contents

 

Table of Contents:

 

Press Release

Signature Page

 



Table of Contents

 

 

2Q12 Production Report

 

THE FIVE-BILLION TON MARK

 

Rio de Janeiro, July 18, 2012- Vale S.A. (Vale) celebrated its 70th anniversary on June 1, 2012. Simultaneously, we crossed the extraordinary mark of five billion metric tons of iron ore production accumulated since the company’s incorporation(1). The volume of iron ore produced by Vale during these seven decades is sufficient to feed more than two years of global crude steel output at the current pace of 1.5 billion metric tons per annum.

 

This is a major achievement stemming from a combination of hard work, technological innovation and a generous endowment of natural resources dedicated to suppling the best iron ore in the world to the global steel industry. Metals are the backbone of the modern economy, and Vale as a global mining leader will continue to play an important role in supporting the economic development of nations.

 

In this context, on June 27, 2012, we obtained the preliminary environmental license (LP) to develop the Carajás S11D (S11D) iron ore project. Located in the Southern Range of Carajás, state of Pará, Brazil, S11D has a nominal capacity to deliver 90 million metric tons per year, with an average ferrous content of 66.48% and low concentration of impurities.

 

S11D is the largest project not only in Vale’s history but also in the entire iron ore industry, being our major lever for production growth and maintenance of Vale’s undisputed leadership in the global market in terms of volume, mining costs and quality.

 

Iron ore output reached 80.5 Mt in 2Q12, a record for a second quarter, thus recovering from the poor performance of the previous quarter, which was caused by adverse weather conditions². Production increased 15.1% against 1Q12 and 0.4% against 2Q11.

 

The ramp up of new operations, including Moatize, Oman and Bayóvar, was instrumental for achieving all-time high figures for metallurgical coal, 1.3 Mt, pellets, 14.3 Mt, and phosphate rock production, 2.0 Mt.

 

Production

 

000’ metric tons

 

1Q12

 

2Q12

 

%
change

 

Iron ore(a)

 

69,994

 

80,542

 

15.1%

 

Pellets(b)

 

12,692

 

14,256

 

12.3%

 

Manganese

 

484

 

584

 

20.6%

 

Coal(c)

 

2,350

 

2,467

 

5.0%

 

Nickel

 

63

 

61

 

-3.6%

 

Copper

 

73

 

70

 

-4.4%

 

Potash

 

118

 

129

 

8.9%

 

Phosphate rock

 

1,826

 

2,017

 

10.4%

 

 


(a)

Including Samarco’s attributable production.

(b)

Including Samarco’s and Hispanobras’ attributable production.

(c)

Including El Hatillo’s production.

 

 

(1)

Iron ore production accumulated from June 1, 1942 to June 1, 2012, totaled 5,007,783,000 metric tons.

(2)

Mt = million metric tons, t = metric tons

 

1



Table of Contents

 

BULK MATERIALS

 

·      Iron ore

 

000’ metric tons

 

2Q11

 

1Q12

 

2Q12

 

1H11

 

1H12

 

% change
2Q12/1Q12

 

% change
2Q12/2Q11

 

% change
1H12/1H11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IRON ORE

 

80,257

 

69,994

 

80,542

 

151,797

 

150,536

 

15.1

%

0.4

%

-0.8

%

Northern System

 

26,019

 

21,711

 

27,362

 

48,670

 

49,073

 

26.0

%

5.2

%

0.8

%

Carajás

 

26,019

 

21,711

 

27,362

 

48,670

 

49,073

 

26.0

%

5.2

%

0.8

%

Southeastern System

 

30,528

 

26,759

 

28,296

 

59,222

 

55,054

 

5.7

%

-7.3

%

-7.0

%

Itabira

 

10,499

 

8,154

 

9,184

 

19,581

 

17,338

 

12.6

%

-12.5

%

-11.5

%

Mariana

 

9,861

 

9,340

 

9,080

 

19,234

 

18,420

 

-2.8

%

-7.9

%

-4.2

%

Minas Centrais

 

10,168

 

9,265

 

10,032

 

20,407

 

19,297

 

8.3

%

-1.3

%

-5.4

%

Southern System

 

19,496

 

17,667

 

20,743

 

36,275

 

38,409

 

17.4

%

6.4

%

5.9

%

Minas Itabirito

 

7,691

 

7,345

 

7,993

 

14,868

 

15,338

 

8.8

%

3.9

%

3.2

%

Vargem Grande

 

5,784

 

4,800

 

5,950

 

10,242

 

10,750

 

24.0

%

2.9

%

5.0

%

Paraopeba

 

6,021

 

5,521

 

6,800

 

11,165

 

12,321

 

23.2

%

12.9

%

10.4

%

Midwestern System

 

1,417

 

1,302

 

1,366

 

2,331

 

2,668

 

4.9

%

-3.6

%

14.5

%

Corumbá

 

1,028

 

975

 

915

 

1,637

 

1,890

 

-6.2

%

-11.0

%

15.5

%

Urucum

 

389

 

327

 

451

 

694

 

778

 

38.1

%

16.0

%

12.1

%

Samarco¹

 

2,798

 

2,556

 

2,775

 

5,300

 

5,331

 

8.6

%

-0.8

%

0.6

%

 


(1)  Vale’s attributable production capacity of 50%.

 

In 2Q12 iron ore production was 80.5 Mt, reaching a new record for a second quarter.

 

Output increased 15.1% on a quarterly basis, with across-the-board gains in all systems, Northern, Southeastern, Southern and Midwestern, as well as Samarco. The end of the rainy season helped the recovery.

 

Production at the Carajás mining site reached 27.4 Mt in 2Q12, which was the best performance for a second quarter, 26.0% higher than the previous quarter and 5.2% above 2Q11. The increase reflected better weather conditions in 2Q12. The level of rainfall in the Northern System was 50% less in 2Q12 than in 2Q11.

 

The Southeastern System, which encompasses the Itabira, Mariana and Minas Centrais mining sites, produced 28.3 Mt, 5.7% higher than 1Q12 and 7.3% lower than 2Q11, due to the impoverishment of Itabira and Minas Centrais (Gongo Soco mine) resources.

 

The Southern System — Minas Itabirito, Vargem Grande and Paraopeba — produced 20.7 Mt, the best performance for a second quarter since 2Q08 reflecting operational improvements in crushing at Vargem Grande and screening at Minas Itabirito. The output was 17.4% and 6.4% higher than 1Q12 and 2Q11, respectively. Minas Itabirito produced 8.0 Mt in 2Q12, also a new record for a second quarter.

 

The Midwestern System, Urucum and Corumbá mining sites, produced 1.4 Mt in 2Q12. Production rose 4.9% on a quarter-over-quarter basis and decreased 3.6% on a year-over-year basis. Corumbá’s output was 6.2% lower than 1Q12 due to scheduled maintenance stoppage. Urucum’s production rose by 38.1%, when compared to 1Q12, reflecting the ramp-up process of a new processing plant, which started in February.

 

2



Table of Contents

 

·      Pellets

 

000’ metric tons

 

2Q11

 

1Q12

 

2Q12

 

1H11

 

1H12

 

% change
2Q12/1Q12

 

% change
2Q12/2Q11

 

% change
1H12/1H11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PELLETS

 

13,140

 

12,692

 

14,256

 

25,656

 

26,949

 

12.3

%

8.5

%

5.0

%

Tubarão I and II

 

1,440

 

1,062

 

1,530

 

2,776

 

2,592

 

44.1

%

6.3

%

-6.6

%

Fábrica

 

992

 

907

 

956

 

1,939

 

1,863

 

5.4

%

-3.6

%

-3.9

%

São Luís

 

1,349

 

962

 

1,373

 

2,686

 

2,334

 

42.7

%

1.7

%

-13.1

%

Vargem Grande

 

1,321

 

823

 

1,383

 

2,597

 

2,206

 

68.2

%

4.7

%

-15.0

%

Oman

 

336

 

1,415

 

1,593

 

336

 

3,008

 

12.6

%

374.8

%

796.5

%

Nibrasco

 

2,291

 

2,257

 

1,977

 

4,699

 

4,234

 

-12.4

%

-13.7

%

-9.9

%

Kobrasco

 

1,001

 

1,139

 

1,258

 

2,224

 

2,397

 

10.5

%

25.6

%

7.8

%

Hispanobras(1)

 

544

 

540

 

565

 

1,086

 

1,105

 

4.7

%

4.0

%

1.8

%

Itabrasco

 

1,135

 

1,019

 

1,020

 

2,155

 

2,039

 

0.1

%

-10.1

%

-5.4

%

Samarco(2)

 

2,731

 

2,570

 

2,599

 

5,159

 

5,169

 

1.2

%

-4.8

%

0.2

%

 


(1)  Vale’s attributable production capacity of 50.89%.

(2)  Vale’s attributable production capacity of 50%.

 

Pellet production reached 14.3 Mt in 2Q12, an increase of 12.3% compared to the previous quarter and 8.5% higher than 2Q11, 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 2Q12, 12.6% higher than previous quarter.

 

In 2Q12, 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 1Q12.

 

The production of Fábrica was 5.4% higher than 1Q12, but 3.6% lower than 2Q11, 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 2Q12, 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 2Q12, Nibrasco had a decrease of 12.4% over 1Q12 and 13.7% over 2Q11, due to the maintenance stoppage in the quarter.

 

Kobrasco production was 10.5% and 25.6% above 1Q12 and 2Q11, respectively, reflecting a greater supply of pellet feed in 2Q12 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 2Q11 due to a maintenance stoppage.

 

3



Table of Contents

 

·       Manganese ore and ferroalloys

 

000’ metric tons

 

2Q11

 

1Q12

 

2Q12

 

1H11

 

1H12

 

% change
2Q12/1Q12

 

% change
2Q12/2Q11

 

% change
1H12/1H11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MANGANESE ORE

 

619

 

484

 

584

 

1,117

 

1,068

 

20.6

%

-5.6

%

-4.4

%

Azul

 

486

 

379

 

463

 

902

 

843

 

22.2

%

-4.6

%

-6.6

%

Urucum

 

82

 

67

 

81

 

134

 

148

 

22.1

%

-0.7

%

10.2

%

Other mines

 

51

 

38

 

39

 

81

 

78

 

3.0

%

-23.3

%

-3.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FERROALLOYS

 

114

 

106

 

109

 

227

 

215

 

2.7

%

-4.2

%

-5.3

%

Brazil

 

52

 

50

 

46

 

104

 

96

 

-6.7

%

-11.6

%

-7.8

%

Dunkerque

 

37

 

30

 

35

 

74

 

64

 

17.1

%

-4.9

%

-12.4

%

Mo I Rana

 

25

 

27

 

28

 

50

 

55

 

4.3

%

12.2

%

10.1

%

 

In 2Q12, manganese ore production increased 20.6% on a quarterly basis, reaching 584,000 t versus 484,000 t in 1Q12.

 

Output of the Carajás manganese mine Azul was the main contributor to the improved output, producing 463,000 t in 2Q12, due to the end of the rainy season in Brazil. The 4.6% reduction in output compared to 2Q11 was related to low physical availability of the plant in 2Q12.

 

Urucum also had a stronger performance, 22.1% higher than 1Q12, reaching 81,000 t in 2Q12, reflecting operational improvements in the equipments in the underground mine.

 

Production of manganese ore at Morro da Mina, part of the “other mines”, improved only 3% quarter-over-quarter due to the worsening of the stripping ratio. Waste removal is being intensified during 2012 in order to return production to normal levels.

 

Ferroalloy 2Q12 production was slightly higher than 1Q12, but below 2Q11, due to lower Brazilian output related to the stoppage for maintenance during the quarter. Production in 2Q12 was comprised of 59,800 t of ferrosilicon manganese alloys (FeSiMn), 43,400 t of high-carbon manganese alloys (FeMnHc) and 5,900 t of medium-carbon manganese alloys (FeMnMC).

 

Production from operations at Dunkerque in France recovered illustrating improved demand for FeMnHC compared to 1Q12. Furthermore, production from the Norwegian operations of Mo I Rana continued to rise because of better operational efficiency, increasing 4.3% against 1Q12 and 12.2% year-over-year.

 

We signed this month an agreement to sell the Dunkerque and Mo I Rana operations as part of the optimization of our asset portfolio.

 

4



Table of Contents

 

·       Coal

 

000’ metric tons

 

2Q11

 

1Q12

 

2Q12

 

1H11

 

1H12

 

% change
2Q12/1Q12

 

% change
2Q12/2Q11

 

% change
1H12/1H11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

METALLURGICAL COAL

 

518

 

1,127

 

1,277

 

1,007

 

2,403

 

13.3

%

146.3

%

138.8

%

Moatize

 

0

 

501

 

728

 

0

 

1,229

 

45.2

%

n.m.

 

n.m.

 

Carborough Downs

 

368

 

325

 

82

 

599

 

407

 

-74.8

%

-77.8

%

-32.1

%

Integra Coal

 

30

 

124

 

266

 

216

 

390

 

115.0

%

793.5

%

80.9

%

Others

 

121

 

177

 

201

 

192

 

378

 

13.6

%

66.3

%

96.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

THERMAL COAL

 

787

 

1,223

 

1,190

 

1,720

 

2,414

 

-2.7

%

51.3

%

40.3

%

Moatize

 

0

 

193

 

390

 

0

 

583

 

101.7

%

n.m.

 

n.m.

 

El Hatillo

 

698

 

848

 

571

 

1,533

 

1,419

 

-32.7

%

-18.2

%

-7.5

%

Integra Coal

 

25

 

81

 

121

 

96

 

202

 

50.5

%

381.9

%

110.9

%

Others

 

63

 

102

 

108

 

91

 

210

 

6.5

%

70.9

%

130.8

%

 

Coal production in 2Q12 was 2.5 Mt, compared to 2.4 Mt in 1Q12. We achieved an all time high quarterly figure for metallurgical coal production, 1.277 Mt, which represented an increase of 13.3% over 1Q12. The output of thermal coal, excluding El Hatillo, showed an improvement of 65%. In both cases the ramp-up of Moatize was the main contributor.

 

The ramp-up of Moatize, the first phase of the Moatize coal project, in Tete, Mozambique, is moving ahead as planned, with 728,000 t of hard coking coal and 390,000 t of thermal coal produced in 2Q12. Output composition is converging to the planned mining split of 80% metallurgical coal and 20% thermal.

 

Moatize, a long life low cost world-class asset, will reshape our coal business, providing the scale, cost structure and quality - Chipanga prime HCC - required to become an important source of shareholder value creation.

 

In 2Q12, production of metallurgical and thermal coal at Integra Coal, in Australia, was 266,000 t and 121,000 t, respectively. Metallurgical coal production improved after geological issues were solved in 1Q12 and also due to the end of the rainy season in New South Wales, which contributed to the quarterly increase in thermal coal production.

 

As previously stated, production at Carborough Downs was impacted by the stoppage of operations after the detection of abnormal levels of carbon monoxide in the mine. Production amounted to 82,000 t of metallurgical coal. At this point, we have begun recovery activities in order to allow for longwall mining to restart. We estimate that mining should be normalized during 3Q12. Meanwhile, we are monitoring very closely in real time the gas levels in the mine.

 

Coal production in other mines reached 201,000 t of metallurgical coal and 108,000 t of thermal coal, recovering from the above average rainfall in 1Q12.

 

On June 25, 2012, we concluded the sale of the coal assets in Colombia, including El Hatillo, as part of the effort to optimize the asset portfolio.

 

5



Table of Contents

 

BASE METALS

 

·       Nickel

 

000’ metric tons

 

2Q11

 

1Q12

 

2Q12

 

1H11

 

1H12

 

% change
2Q12/1Q12

 

% change
2Q12/2Q11

 

% change
1H12/1H11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nickel

 

56

 

63

 

61

 

115

 

124

 

-3.6

%

8.4

%

7.9

%

Sudbury

 

10

 

23

 

17

 

25

 

40

 

-22.6

%

69.1

%

62.5

%

Thompson

 

7

 

6

 

7

 

15

 

13

 

12.6

%

1.0

%

-14.0

%

Voisey’s Bay

 

15

 

14

 

15

 

32

 

29

 

1.9

%

-5.2

%

-7.7

%

Sorowako

 

19

 

12

 

17

 

37

 

29

 

36.3

%

-11.6

%

-20.6

%

VNC

 

2

 

2

 

2

 

2

 

4

 

-17.5

%

-5.9

%

73.7

%

Onça Puma

 

1

 

4

 

2

 

1

 

6

 

-56.3

%

62.0

%

316.7

%

Others(1)

 

2

 

2

 

2

 

4

 

3

 

-1.3

%

-2.0

%

-9.3

%

 


(1) External feed purchased from third parties and processed into finished nickel in our operations

 

Total finished nickel production was 60,900 t in 2Q12, 3.6% below the previous quarter, but 8.4% above 2Q11. The longer than expected temporary suspension for safety assessment of mining operations in Sudbury negatively impacted finished nickel production in 2Q12.

 

Finished nickel production from Sudbury was 17,400 t, 22.6% below 1Q12. We decided to anticipate scheduled maintenance stoppages from 3Q12 to 2Q12, due to lower availability of feeds after the inventory drawdown in 1Q12.

 

The output of Thompson in 2Q12 was 12.6% higher than 1Q12, reflecting better operational performance. Production was in line with the same period of last year.

 

Production at Voisey’s Bay was slightly above 1Q12, but was still impacted by the maintenance stoppage in Sudbury, where part of the feed is processed.

 

Finished nickel production sourced from Sorowako, Indonesia, increased by 36.3% on a quarterly basis, reflecting the ramp-up after the operational issues faced due to the metal cut-out in 4Q11.

 

VNC, our nickel operation in New Caledonia, is expected to resume operations in 4Q12. In May 2012, we stopped operations due to an incident in the acid plant. An independent investigation concluded that a technical defect caused a water leak inside the plant, which diluted the acid and caused some corrosion.

 

The issues with the acid plant have not related to the HPAL (high pressure acid leaching) technology, whose feasibility proven by the production of 1,100 t of nickel oxide in 1Q12. The acid plant only supplies an input to the HPAL process. Currently, we are planning the repairs to the acid plant and all the equipment is expected to be operational by year-end.

 

The solvent extraction circuit (all 21 columns) will be commissioned and ready to operate by the fourth quarter. As a result, from 4Q12 onwards VNC will produce nickel hydroxide cake, cobalt and nickel oxide, but no output is expected to be delivered in 3Q12.

 

Onca Puma stopped operating by the end of 2Q12 due to the run-out of furnace #1 on May 28 and furnace #2 on June 22. We are still assessing the extent of the repairs needed and the period of time required to perform them. Initial indications suggest that is likely that both furnaces will be out of operation during the next few months.

 

6



Table of Contents

 

·     Copper

 

000’ metric tons

 

2Q11

 

1Q12

 

2Q12

 

1H11

 

1H12

 

% change
2Q12/1Q12

 

% change
2Q12/2Q11

 

% change
1H12/1H11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COPPER

 

63

 

73

 

70

 

133

 

143

 

-4.4

%

11.0

%

7.4

%

Sossego

 

23

 

25

 

28

 

46

 

53

 

11.5

%

22.7

%

16.8

%

Sudbury

 

22

 

24

 

22

 

47

 

46

 

-7.2

%

0.4

%

-3.4

%

Thompson

 

0

 

1

 

1

 

1

 

2

 

-28.4

%

242.0

%

166.8

%

Voisey’s Bay

 

11

 

11

 

8

 

25

 

19

 

-31.6

%

-31.6

%

-21.8

%

Tres Valles

 

2

 

4

 

3

 

3

 

7

 

-2.5

%

58.3

%

126.1

%

Others

 

4

 

8

 

8

 

11

 

15

 

-4.9

%

80.2

%

36.5

%

 

Copper production in 2Q12 was 69,700 t, decreasing 4.4% quarter-over-quarter, mainly due to issues with our Canadian operations.

 

The output of Sudbury was impacted by the longer than expected temporary suspension for safety assessment of mining operations during 1Q12 and the anticipation of scheduled maintenance stoppage from 3Q12 to 2Q12.

 

Production of copper in concentrates from the Sossego mine at Carajás was 11.5% and 22.7% above 1Q12 and 2Q11, respectively, due to the improved grade of copper received by the processing plant.

 

Operations at Tres Valles, in Chile, continued to ramp-up to nominal capacity, reaching 3,500 t of copper cathodes in 2Q12. The output was slightly below 1Q12, due to the lower grade of the ore processed by the plant.

 

Tres Valles is a small operation but it is relevant as it is our first experience with an SX-EW operation after the start-up of our first copper sulphide greenfield project, Sossego, in 2004.

 

7



Table of Contents

 

·     Nickel by-products

 

 

 

2Q11

 

1Q12

 

2Q12

 

1H11

 

1H12

 

% change
2Q12/1Q12

 

% change
2Q12/2Q11

 

% change
1H12/1H11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COBALT (metric tons)

 

640

 

592

 

693

 

1,221

 

1,285

 

17.0

%

8.2

%

5.3

%

Sudbury

 

57

 

206

 

166

 

98

 

372

 

-19.2

%

190.8

%

279.2

%

Thompson

 

41

 

22

 

22

 

92

 

44

 

0.7

%

-46.1

%

-52.2

%

Voisey Bay

 

410

 

310

 

316

 

838

 

626

 

1.9

%

-22.9

%

-25.3

%

VNC

 

114

 

40

 

177

 

136

 

217

 

343.0

%

55.7

%

59.4

%

Others

 

18

 

14

 

11

 

56

 

25

 

-21.4

%

-39.0

%

-55.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PLATINUM (000’ oz troy)

 

51

 

38

 

39

 

108

 

77

 

2.8

%

-22.7

%

-28.4

%

Sudbury

 

51

 

38

 

39

 

108

 

77

 

2.8

%

-22.7

%

-28.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PALLADIUM (000’ oz troy)

 

72

 

59

 

66

 

144

 

125

 

11.9

%

-8.0

%

-13.3

%

Sudbury

 

72

 

59

 

66

 

144

 

125

 

11.9

%

-8.0

%

-13.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GOLD (000’ oz troy)

 

95

 

19

 

18

 

125

 

37

 

-5.8

%

-81.2

%

-70.5

%

Sudbury

 

95

 

19

 

18

 

125

 

37

 

-5.8

%

-81.2

%

-70.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SILVER (000’ oz troy)

 

686

 

595

 

567

 

1,281

 

1,162

 

-4.7

%

-17.3

%

-9.3

%

Sudbury

 

686

 

595

 

567

 

1,281

 

1,162

 

-4.7

%

-17.3

%

-9.3

%

 

Cobalt production reached 693 t, 17% higher than 1Q12 and 8.2% above 2Q11.

 

Sudbury cobalt production in 2Q12 amounted to 166 t, down 40 t from 1Q12, mostly due to a longer than expected temporary suspension for safety assessment of mining operations.

 

Output from VNC, at 177 t in 2Q12, reflected production before stoppage, which occurred on May 10, when we declared force majeure after an incident in the acid plant. We expect no cobalt production in 3Q12.

 

In 2Q12, production of platinum and palladium was 105,000 troy ounces, 8,000 troy ounces higher than 1Q12.

 

8



Table of Contents

 

FERTILIZER NUTRIENTS

 

·     Potash

 

000’ metric tons

 

2Q11

 

1Q12

 

2Q12

 

1H11

 

1H12

 

% change
2Q12/1Q12

 

% change
2Q12/2Q11

 

% change
1H12/1H11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

POTASH

 

145

 

118

 

129

 

279

 

247

 

8.9

%

-11.2

%

-11.6

%

Taquari-Vassouras

 

145

 

118

 

129

 

279

 

247

 

8.9

%

-11.2

%

-11.6

%

 

·     Phosphates

 

 

 

2Q11

 

1Q12

 

2Q12

 

1H11

 

1H12

 

% Change
2Q12/1Q12

 

% Change
2Q12/2Q11

 

% Change
1H12/1H11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PHOSPHATE ROCK

 

1,858

 

1,826

 

2,017

 

3,601

 

3,843

 

10.4

%

8.5

%

6.7

%

Brazil

 

1,272

 

1,112

 

1,237

 

2,420

 

2,349

 

11.2

%

-2.8

%

-2.9

%

Bayóvar

 

586

 

714

 

779

 

1,180

 

1,493

 

9.2

%

33.1

%

26.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MAP(1)

 

131

 

311

 

286

 

341

 

597

 

-8.3

%

118.3

%

75.3

%

TSP(2)

 

175

 

241

 

213

 

408

 

454

 

-11.5

%

21.6

%

11.1

%

SSP(3)

 

666

 

484

 

507

 

1,212

 

991

 

4.7

%

-23.9

%

-18.2

%

DCP(4) 

 

158

 

144

 

136

 

315

 

280

 

-5.5

%

-14.1

%

-11.1

%

 


(1) Monoammonium phosphate

(2) Triple superphosphate

(3) Single superphosphate

(4) Dicalcium phosphate

 

As our sales are primarily destined to the Brazilian market, where the demand for nutrients is more concentrated in the second half of the year, our production tends to be weaker in the first half.

 

Production of potash was 129,000 t in 2Q12, increasing 8.9% quarter-over-quarter and decreasing 11.2% year-over-year. The output increase reflected the improvement in infrastructure, the acquisition of equipment and the results of maintenance work in Taquari-Vassouras.

 

In 2Q12, total production of phosphate rock, which is used to feed the output of phosphate nutrients, achieved a record high figure, reflecting the ramp-up of Bayóvar. Total production of phosphate rock in 2Q12 was 10.4% higher than 1Q12. Output from Brazilian operations increased 11.2% on a quarterly basis, recovering from the maintenance stoppages and the rainy season in Brazil. Additionally, production from Bayóvar, which is ramping up, increased 9.2% over 1Q12.

 

The production of MAP (monoammonium phosphate) amounted to 286,000 t, down 8.3% on a quarter-over-quarter basis, due to the annual maintenance stoppage at Uberaba, which happened in June.

 

TSP (Triple superphosphate) production was 11.5% lower than 1Q12, also showing the effects of the maintenance work at Uberaba.

 

In 2Q12, the production of SSP (single superphosphate) was 4.7% higher than 1Q12, recovering from the maintenance stoppages in the Guará and Catalão units which took place in February 2012.

 

9



Table of Contents

 

DCP (dicalcium phosphate) production decreased 5.5% compared to 1Q12, showing production adjustments due to weaker demand.

 

·     Nitrogen

 

000’ metric tons

 

2Q11

 

1Q12

 

2Q12

 

1H11

 

1H12

 

% change
2Q12/1Q12

 

% change
2Q12/2Q11

 

% change
1H12/1H11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AMMONIA

 

167

 

132

 

101

 

325

 

233

 

-23.4

%

-39.5

%

-28.1

%

UREA

 

175

 

107

 

143

 

335

 

250

 

32.8

%

-18.5

%

-25.2

%

NITRIC ACID

 

121

 

118

 

120

 

228

 

238

 

1.5

%

-0.6

%

4.4

%

AMMONIUM NITRATE

 

114

 

119

 

124

 

217

 

242

 

4.2

%

8.5

%

11.8

%

 

In 2Q12, ammonia production was 23.4% lower when compared to 1Q12, as a result of low availability of steam from the Araucária refinery. Urea production increased 32.8% when compared to 1Q12, recovering from a scheduled stoppage for maintenance, which took place in 1Q12.

 

The output of nitric acid and ammonium nitrate was 1.5% and 4.2%, respectively, higher than last quarter.

 

10



Table of Contents

 

BULK MATERIALS

 

Iron ore

 

000’ metric tons

 

2Q11

 

1Q12

 

2Q12

 

1H11

 

1H12

 

% change
2Q12/1Q12

 

% change
2Q12/2Q11

 

% change
1H12/1H11

 

IRON ORE

 

80,257

 

69,994

 

80,542

 

151,797

 

150,536

 

15.1

%

0.4

%

-0.8

%

Northern System

 

26,019

 

21,711

 

27,362

 

48,670

 

49,073

 

26.0

%

5.2

%

0.8

%

Carajás

 

26,019

 

21,711

 

27,362

 

48,670

 

49,073

 

26.0

%

5.2

%

0.8

%

Southeastern System

 

30,528

 

26,759

 

28,296

 

59,222

 

55,054

 

5.7

%

-7.3

%

-7.0

%

Itabira

 

10,499

 

8,154

 

9,184

 

19,581

 

17,338

 

12.6

%

-12.5

%

-11.5

%

Mariana

 

9,861

 

9,340

 

9,080

 

19,234

 

18,420

 

-2.8

%

-7.9

%

-4.2

%

Minas Centrais

 

10,168

 

9,265

 

10,032

 

20,407

 

19,297

 

8.3

%

-1.3

%

-5.4

%

Southern System

 

19,496

 

17,667

 

20,743

 

36,275

 

38,409

 

17.4

%

6.4

%

5.9

%

Minas Itabirito

 

7,691

 

7,345

 

7,993

 

14,868

 

15,338

 

8.8

%

3.9

%

3.2

%

Vargem Grande

 

5,784

 

4,800

 

5,950

 

10,242

 

10,750

 

24.0

%

2.9

%

5.0

%

Paraopeba

 

6,021

 

5,521

 

6,800

 

11,165

 

12,321

 

23.2

%

12.9

%

10.4

%

Midwestern System

 

1,417

 

1,302

 

1,366

 

2,331

 

2,668

 

4.9

%

-3.6

%

14.5

%

Corumbá

 

1,028

 

975

 

915

 

1,637

 

1,890

 

-6.2

%

-11.0

%

15.5

%

Urucum

 

389

 

327

 

451

 

694

 

778

 

38.1

%

16.0

%

12.1

%

Samarco(1)

 

2,798

 

2,556

 

2,775

 

5,300

 

5,331

 

8.6

%

-0.8

%

0.6

%

 


(1)  Vale’s attributable production capacity of 50%.

 

Pellets

 

000’ metric tons

 

2Q11

 

1Q12

 

2Q12

 

1H11

 

1H12

 

% change
2Q12/1Q12

 

% change
2Q12/2Q11

 

% change
1H12/1H11

 

PELLETS

 

13,140

 

12,692

 

14,256

 

25,656

 

26,949

 

12.3

%

8.5

%

5.0

%

Tubarão I and II

 

1,440

 

1,062

 

1,530

 

2,776

 

2,592

 

44.1

%

6.3

%

-6.6

%

Fábrica

 

992

 

907

 

956

 

1,939

 

1,863

 

5.4

%

-3.6

%

-3.9

%

São Luís

 

1,349

 

962

 

1,373

 

2,686

 

2,334

 

42.7

%

1.7

%

-13.1

%

Vargem Grande

 

1,321

 

823

 

1,383

 

2,597

 

2,206

 

68.2

%

4.7

%

-15.0

%

Oman

 

336

 

1,415

 

1,593

 

336

 

3,008

 

12.6

%

374.8

%

796.5

%

Nibrasco

 

2,291

 

2,257

 

1,977

 

4,699

 

4,234

 

-12.4

%

-13.7

%

-9.9

%

Kobrasco

 

1,001

 

1,139

 

1,258

 

2,224

 

2,397

 

10.5

%

25.6

%

7.8

%

Hispanobras(1)

 

544

 

540

 

565

 

1,086

 

1,105

 

4.7

%

4.0

%

1.8

%

Itabrasco

 

1,135

 

1,019

 

1,020

 

2,155

 

2,039

 

0.1

%

-10.1

%

-5.4

%

Samarco(2)

 

2,731

 

2,570

 

2,599

 

5,159

 

5,169

 

1.2

%

-4.8

%

0.2

%

 


(1)  Vale’s attributable production capacity of 50.89%.

(2)  Vale’s attributable production capacity of 50%.

 

Manganese ore and ferroalloys

 

000’ metric tons

 

2Q11

 

1Q12

 

2Q12

 

1H11

 

1H12

 

% change
2Q12/1Q12

 

% change
2Q12/2Q11

 

% change
1H12/1H11

 

MANGANESE ORE

 

619

 

484

 

584

 

1,117

 

1,068

 

20.6

%

-5.6

%

-4.4

%

Azul

 

486

 

379

 

463

 

902

 

843

 

22.2

%

-4.6

%

-6.6

%

Urucum

 

82

 

67

 

81

 

134

 

148

 

22.1

%

-0.7

%

10.2

%

Other mines

 

51

 

38

 

39

 

81

 

78

 

3.0

%

-23.3

%

-3.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FERROALLOYS

 

114

 

106

 

109

 

227

 

215

 

2.7

%

-4.2

%

-5.3

%

Brazil

 

52

 

50

 

46

 

104

 

96

 

-6.7

%

-11.6

%

-7.8

%

Dunkerque

 

37

 

30

 

35

 

74

 

64

 

17.1

%

-4.9

%

-12.4

%

Mo I Rana

 

25

 

27

 

28

 

50

 

55

 

4.3

%

12.2

%

10.1

%

 

11



Table of Contents

 

Coal

 

000’ metric tons

 

2Q11

 

1Q12

 

2Q12

 

1H11

 

1H12

 

% change
2Q12/1Q12

 

% change
2Q12/2Q11

 

% change
1H12/1H11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

METALLURGICAL COAL

 

518

 

1,127

 

1,277

 

1,007

 

2,403

 

13.3

%

146.3

%

138.8

%

Moatize

 

0

 

501

 

728

 

0

 

1,229

 

45.2

%

n.m.

 

n.m.

 

Carborough Downs

 

368

 

325

 

82

 

599

 

407

 

-74.8

%

-77.8

%

-32.1

%

Integra Coal

 

30

 

124

 

266

 

216

 

390

 

115.0

%

793.5

%

80.9

%

Others

 

121

 

177

 

201

 

192

 

378

 

13.6

%

66.3

%

96.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

THERMAL COAL

 

787

 

1,223

 

1,190

 

1,720

 

2,414

 

-2.7

%

51.3

%

40.3

%

Moatize

 

0

 

193

 

390

 

0

 

583

 

101.7

%

n.m.

 

n.m.

 

El Hatillo

 

698

 

848

 

571

 

1,533

 

1,419

 

-32.7

%

-18.2

%

-7.5

%

Integra Coal

 

25

 

81

 

121

 

96

 

202

 

50.5

%

381.9

%

110.9

%

Others

 

63

 

102

 

108

 

91

 

210

 

6.5

%

70.9

%

130.8

%

 

BASE METALS

 

Nickel

 

000’ metric tons

 

2Q11

 

1Q12

 

2Q12

 

1H11

 

1H12

 

% change
2Q12/1Q12

 

% change
2Q12/2Q11

 

% change
1H12/1H11

 

NICKEL

 

56

 

63

 

61

 

115

 

124

 

-3.6

%

8.4

%

7.9

%

Sudbury

 

10

 

23

 

17

 

25

 

40

 

-22.6

%

69.1

%

62.5

%

Thompson

 

7

 

6

 

7

 

15

 

13

 

12.6

%

1.0

%

-14.0

%

Voisey’s Bay

 

15

 

14

 

15

 

32

 

29

 

1.9

%

-5.2

%

-7.7

%

Sorowako

 

19

 

12

 

17

 

37

 

29

 

36.3

%

-11.6

%

-20.6

%

VNC

 

2

 

2

 

2

 

2

 

4

 

-17.5

%

-5.9

%

73.7

%

Onça Puma

 

1

 

4

 

2

 

1

 

6

 

-56.3

%

62.0

%

316.7

%

Others(1)

 

2

 

2

 

2

 

4

 

3

 

-1.3

%

-2.0

%

-9.3

%

 


(1) External feed purchased from third parties and processed into finished nickel in our operations

 

Copper

 

000’ metric tons

 

2Q11

 

1Q12

 

2Q12

 

1H11

 

1H12

 

% change
2Q12/1Q12

 

% change
2Q12/2Q11

 

% change
1H12/1H11

 

COPPER

 

63

 

73

 

70

 

133

 

143

 

-4.4

%

11.0

%

7.4

%

Sossego

 

23

 

25

 

28

 

46

 

53

 

11.5

%

22.7

%

16.8

%

Sudbury

 

22

 

24

 

22

 

47

 

46

 

-7.2

%

0.4

%

-3.4

%

Thompson

 

0

 

1

 

1

 

1

 

2

 

-28.4

%

242.0

%

166.8

%

Voisey’s Bay

 

11

 

11

 

8

 

25

 

19

 

-31.6

%

-31.6

%

-21.8

%

Tres Valles

 

2

 

4

 

3

 

3

 

7

 

-2.5

%

58.3

%

126.1

%

Others

 

4

 

8

 

8

 

11

 

15

 

-4.9

%

80.2

%

36.5

%

 

12



Table of Contents

 

Nickel by-products

 

 

 

2Q11

 

1Q12

 

2Q12

 

1H11

 

1H12

 

% change
2Q12/1Q12

 

% change
2Q12/2Q11

 

% change
1H12/1H11

 

COBALT (metric tons)

 

640

 

592

 

693

 

1,221

 

1,285

 

17.0

%

8.2

%

5.3

%

Sudbury

 

57

 

206

 

166

 

98

 

372

 

-19.2

%

190.8

%

279.2

%

Thompson

 

41

 

22

 

22

 

92

 

44

 

0.7

%

-46.1

%

-52.2

%

Voisey Bay

 

410

 

310

 

316

 

838

 

626

 

1.9

%

-22.9

%

-25.3

%

VNC

 

114

 

40

 

177

 

136

 

217

 

343.0

%

55.7

%

59.4

%

Others

 

18

 

14

 

11

 

56

 

25

 

-21.4

%

-39.0

%

-55.5

%

PLATINUM (000’ oz troy)

 

51

 

38

 

39

 

108

 

77

 

2.8

%

-22.7

%

-28.4

%

Sudbury

 

51

 

38

 

39

 

108

 

77

 

2.8

%

-22.7

%

-28.4

%

PALLADIUM (000’ oz troy)

 

72

 

59

 

66

 

144

 

125

 

11.9

%

-8.0

%

-13.3

%

Sudbury

 

72

 

59

 

66

 

144

 

125

 

11.9

%

-8.0

%

-13.3

%

GOLD (000’ oz troy)

 

95

 

19

 

18

 

125

 

37

 

-5.8

%

-81.2

%

-70.5

%

Sudbury

 

95

 

19

 

18

 

125

 

37

 

-5.8

%

-81.2

%

-70.5

%

SILVER (000’ oz troy)

 

686

 

595

 

567

 

1,281

 

1,162

 

-4.7

%

-17.3

%

-9.3

%

Sudbury

 

686

 

595

 

567

 

1,281

 

1,162

 

-4.7

%

-17.3

%

-9.3

%

 

FERTILIZER NUTRIENTS

 

Potash

 

000’ metric tons

 

2Q11

 

1Q12

 

2Q12

 

1H11

 

1H12

 

% change
2Q12/1Q12

 

% change
2Q12/2Q11

 

% change
1H12/1H11

 

POTASH

 

145

 

118

 

129

 

279

 

247

 

8.9

%

-11.2

%

-11.6

%

Taquari-Vassouras

 

145

 

118

 

129

 

279

 

247

 

8.9

%

-11.2

%

-11.6

%

 

Phosphates

 

 

 

2Q11

 

1Q12

 

2Q12

 

1H11

 

1H12

 

% Change
2Q12/1Q12

 

% Change
2Q12/2Q11

 

% Change
1H12/1H11

 

PHOSPHATE ROCK

 

1,858

 

1,826

 

2,017

 

3,601

 

3,843

 

10.4

%

8.5

%

6.7

%

Brazil

 

1,272

 

1,112

 

1,237

 

2,420

 

2,349

 

11.2

%

-2.8

%

-2.9

%

Bayóvar

 

586

 

714

 

779

 

1,180

 

1,493

 

9.2

%

33.1

%

26.5

%

MAP(1)

 

131

 

311

 

286

 

341

 

597

 

-8.3

%

118.3

%

75.3

%

TSP(2)

 

175

 

241

 

213

 

408

 

454

 

-11.5

%

21.6

%

11.1

%

SSP(3)

 

666

 

484

 

507

 

1,212

 

991

 

4.7

%

-23.9

%

-18.2

%

DCP(4) 

 

158

 

144

 

136

 

315

 

280

 

-5.5

%

-14.1

%

-11.1

%

 


(1) Monoammonium phosphate

(2) Triple superphosphate

(3) Single superphosphate

(4) Dicalcium phosphate

 

Nitrogen

 

000’ metric tons

 

2Q11

 

1Q12

 

2Q12

 

1H11

 

1H12

 

% change
2Q12/1Q12

 

% change
2Q12/2Q11

 

% change
1H12/1H11

 

AMMONIA

 

167

 

132

 

101

 

325

 

233

 

-23.4

%

-39.5

%

-28.1

%

UREA

 

175

 

107

 

143

 

335

 

250

 

32.8

%

-18.5

%

-25.2

%

NITRIC ACID

 

121

 

118

 

120

 

228

 

238

 

1.5

%

-0.6

%

4.4

%

AMMONIUM NITRATE

 

114

 

119

 

124

 

217

 

242

 

4.2

%

8.5

%

11.8

%

 

13



Table of Contents

 

For further information. please contact:

+55-21-3814-4540

Roberto Castello Branco: roberto.castello.branco@vale.com

Viktor Moszkowicz: viktor.moszkowicz@vale.com

Carla Albano Miller: carla.albano@vale.com

Andrea Gutman: andrea.gutman@vale.com

Christian Perlingiere: christian.perlingiere@vale.com

Marcio Loures Penna: marcio.penna@vale.com

Rafael Rondinelli: rafael.rondinelli@vale.com

Samantha Pons: samantha.pons@vale.com

 

This press release may include statements that present Vale’s expectations about future events or results.  All statements, when based upon expectations about the future and not on historical facts, involve various risks and uncertainties. Vale cannot guarantee that such statements will prove correct. These risks and uncertainties include factors related to the following: (a) the countries where we operate, especially Brazil and Canada; (b) the global economy; (c) the capital markets; (d) the mining and metals prices and their dependence on global industrial production, which is cyclical by nature; and (e) global competition in the markets in which Vale operates. To obtain further information on factors that may lead to results different from those forecast by Vale, please consult the reports Vale files with the U.S. Securities and Exchange Commission (SEC), the Brazilian Comissão de Valores Mobiliários (CVM), the French Autorité des Marchés Financiers (AMF), and The Stock Exchange of Hong Kong Limited, and in particular the factors discussed under “Forward-Looking Statements” and “Risk Factors” in Vale’s annual report on Form 20-F.

 

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Table of Contents

 

Signatures

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

Vale S.A.

 

(Registrant)

 

 

 

By:

/s/ Roberto Castello Branco

Date: July 18, 2012

 

Roberto Castello Branco

 

 

Director of Investor Relations

 

15