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
February 2014
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- .)
2013 and 4Q13 Production Report |
Production Highlights
Rio de Janeiro, February 26, 2014 Vale S.A. (Vale) registered a new quarterly production record in Carajás in 4Q13 of 31.6 Mt. The quarter was marked by the start-up of the +40 Mtpy project in the beginning of December. In 2013, iron ore production reached 299.8 Mt, 98% of our guidance for the year.
Coal output reached a new production mark at 8.8 Mt in 2013, mostly due to the good operational performance of Carborough Downs which reached a new annual production record at 2.5 Mt, 76.0% higher than the previous record registered in 2011. Nonetheless, production is still short of our 2013 target due to Moatizes performance.
Production of nickel reached 260,000 t, the highest annual mark since 2008. Onça Puma successfully restarted operations in 4Q13 and produced 1.900 t of nickel contained in ferronickel. In December 2013, the output of Onça Puma was 1.300 t, about 62% of its nominal capacity of 25,000 t per year for one single furnace.
Copper output reached 370,000 t, also a new annual record, 18.8% above the previous highest production mark in 2008 due to the performance of Sudbury and the successful ramp-up of Salobo, which operated close to nominal capacity in December 2013 and produced 21,100 t of copper in concentrates.
As a result of the increase in Salobos output, the production of gold achieved the all-time high figure of 88,000 oz in 4Q13, 15.9% higher than 3Q13.
Total production of phosphate rock achieved a new annual record due to the ramp-up of Bayóvar and the good operational performance of the Brazilian mines. In 4Q13, Bayóvar produced 1.1 Mt, also a new record, being 20.2% higher than 3Q13.
Production Summary
000 metric tons |
|
4Q13 |
|
3Q13 |
|
4Q12 |
|
2013 |
|
2012 |
|
4Q13/3Q13 |
|
4Q13/4Q12 |
|
2013/2012 |
|
Iron ore (1) |
|
81,251 |
|
83,118 |
|
82,708 |
|
299,795 |
|
309,048 |
|
-2.2 |
% |
-1.8 |
% |
-3.0 |
% |
Pellets(1) |
|
10,409 |
|
9,731 |
|
9,373 |
|
38,995 |
|
44,415 |
|
7.0 |
% |
11.1 |
% |
-12.2 |
% |
Manganese |
|
638 |
|
621 |
|
668 |
|
2,378 |
|
2,365 |
|
2.8 |
% |
-4.4 |
% |
0.5 |
% |
Coal |
|
2,258 |
|
2,377 |
|
1,951 |
|
8,763 |
|
7,082 |
|
-5.0 |
% |
15.7 |
% |
23.7 |
% |
Nickel |
|
68 |
|
62 |
|
64 |
|
260 |
|
237 |
|
9.6 |
% |
6.1 |
% |
9.9 |
% |
Copper(2) |
|
95 |
|
95 |
|
81 |
|
370 |
|
292 |
|
0.0 |
% |
16.8 |
% |
26.9 |
% |
Potash |
|
126 |
|
132 |
|
161 |
|
492 |
|
549 |
|
-4.7 |
% |
-21.6 |
% |
-10.3 |
% |
Phosphate rock |
|
2,286 |
|
2,104 |
|
2,060 |
|
8,277 |
|
7,982 |
|
8.6 |
% |
10.9 |
% |
3.7 |
% |
(1) Excluding Samarcos attributable production.
(2) Including Lubambes attributable production.
Iron ore
000 metric tons |
|
4Q13 |
|
3Q13 |
|
4Q12 |
|
2013 |
|
2012 |
|
4Q13/3Q13 |
|
4Q13/4Q12 |
|
2013/2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Northern System |
|
31,584 |
|
29,793 |
|
30,078 |
|
104,885 |
|
106,786 |
|
6.0 |
% |
5.0 |
% |
-1.8 |
% |
Carajás |
|
31,584 |
|
29,793 |
|
30,078 |
|
104,885 |
|
106,786 |
|
6.0 |
% |
5.0 |
% |
-1.8 |
% |
Southeastern System |
|
28,205 |
|
29,743 |
|
30,389 |
|
109,453 |
|
115,587 |
|
-5.2 |
% |
-7.2 |
% |
-5.3 |
% |
Itabira |
|
9,147 |
|
10,139 |
|
10,041 |
|
34,001 |
|
37,682 |
|
-9.8 |
% |
-8.9 |
% |
-9.8 |
% |
Mariana |
|
9,928 |
|
10,062 |
|
9,706 |
|
37,700 |
|
37,224 |
|
-1.3 |
% |
2.3 |
% |
1.3 |
% |
Minas Centrais |
|
9,130 |
|
9,542 |
|
10,642 |
|
37,752 |
|
40,681 |
|
-4.3 |
% |
-14.2 |
% |
-7.2 |
% |
Southern System |
|
19,732 |
|
21,713 |
|
20,405 |
|
78,954 |
|
80,300 |
|
-9.1 |
% |
-3.3 |
% |
-1.7 |
% |
Minas Itabirito |
|
7,825 |
|
8,430 |
|
8,497 |
|
30,971 |
|
31,774 |
|
-7.2 |
% |
-7.9 |
% |
-2.5 |
% |
Vargem Grande |
|
5,031 |
|
6,061 |
|
5,551 |
|
21,941 |
|
22,609 |
|
-17.0 |
% |
-9.4 |
% |
-3.0 |
% |
Paraopebas |
|
6,877 |
|
7,222 |
|
6,357 |
|
26,042 |
|
25,917 |
|
-4.8 |
% |
8.2 |
% |
0.5 |
% |
Midwestern System |
|
1,729 |
|
1,869 |
|
1,836 |
|
6,503 |
|
6,376 |
|
-7.5 |
% |
-5.8 |
% |
2.0 |
% |
Corumbá |
|
1,208 |
|
1,306 |
|
1,345 |
|
4,496 |
|
4,611 |
|
-7.5 |
% |
-10.2 |
% |
-2.5 |
% |
Urucum |
|
521 |
|
563 |
|
491 |
|
2,007 |
|
1,765 |
|
-7.4 |
% |
6.1 |
% |
13.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL IRON ORE |
|
81,251 |
|
83,118 |
|
82,708 |
|
299,795 |
|
309,048 |
|
-2.2 |
% |
-1.8 |
% |
-3.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Samarco(1) |
|
2,780 |
|
2,772 |
|
2,791 |
|
10,887 |
|
10,912 |
|
0.3 |
% |
-0.4 |
% |
-0.2 |
% |
(1) Vales attributable production capacity of 50%.
Annual performance
Despite the good performance of the fourth quarter mainly in the Northern System, which registered a new quarterly record, Vale´s iron ore production of 299.8 Mt exluding Samarcos attributable production represents 98.0% of the companys 2013 target of 306 Mt.
The 6 Mt net production gap in relation to the 2013 target is a result of lower production in Carajás due to reduced operational flexibility by the end of the year (2.7 Mt), abnormal rainfalls in the Southeastern System which resulted in declaration of Force Majeure (FM) in late December (1.3 Mt) and the ramp-up and licensing challenges in the Conceição Itabiritos and Fábrica Nova mines (2.0 Mt).
All those production setbacks have been addressed as of January 2014 (detailed below), supporting our confidence on the delivery of our growth plans.
Quarterly performance
In 4Q13, iron ore output was 81.3 Mt, being respectively, 2.2% and 1.8% lower than 3Q13 and 4Q12. This decrease in production was mostly due to lack the of operational flexibility in the
Northern System and the heavy rainfalls in the Southeastern System during the quarter.
Northern System
Production reached a record mark at 31.6 Mt in 4Q13, mostly due to the good operational performance of N5S and the ramp-up of Plant 2 (+40Mt project). If not for the lack of operational flexibility by the end of the year, production would have been even higher.
The end of year rains which restrained Vales flexibility to exploit its full array of mine sections coupled with the delay in receiving environmental authorizations to mine specific mine sections had a negative impact in Carajás´ production.
The operational license (LO) for the Plant 2 was obtained on December 2nd, 2013. Vale has been actively engaged in classifying the relevance of and seeking approval for the supression or reduction of the area of influence of critical caves mapped in the Carajás region. As a result, we obtained authorization from the Brazilian Institute for the Environment and Renewable Natural Resources (IBAMA) for mining in the N4E mine areas. This authorization will support the accomplishment of the 2014 production plan of 120 Mt in Carajás, 312 Mt production in the year (321 Mt with purchases of of thirdparty ore).
Southeastern System
The Southeastern System, which encompasses the Itabira, Mariana and Minas Centrais mining sites, produced 28.2 Mt in 4Q13, 5.2% lower than 3Q13 and 7.2% lower than 4Q12, mostly due to weather conditions.
Production of the Itabira mining hub was 1.0 Mt lower than last quarter and 0.9 Mt lower than production in the same period of last year due to the heavy rainfall which led to the declaration of Force Majeure in December (lifted in January 2014) and the delay in the start-up of the Conceição Itabiritos project which occurred only in late December, 2013. Conceição Itabiritos will extend mine life, improve quality of the final product with nominal capacity of 12 Mtpy.
The output of the Mariana mining hub was 0.1 Mt lower than in 3Q13 mostly due to weather conditions. However, production was 0.2 Mt above the same period of last year and a new record for a fourth quarter - as a result of a new license being granted in May 2013 to exploit new mine sections at Fábrica Nova.
The production of the Minas Centrais mining hub was 9.1 Mt in 4Q13, 4.3% below last quarter due to the rainfall and 1.5 Mt lower than 4Q12 due to the declining production of the Gongo Soco mine, which is scheduled to close in 2014.
Southern System
The Southern System, composed of the Itabirito, Vargem Grande and Paraopeba mining hubs, produced 19.7 Mt in 4Q13, 9.1% lower than in 3Q13 and 3.3% lower than in the 4Q12.
The output of the Minas Itabirito mining hub was 0.6 Mt lower than last quarter due to the beginning of the rainy season.
Production of the Vargem Grande and Paraopeba mining hubs was 1.4 Mt lower than last quarter due to scheduled maintenance stoppage.
Midwestern System
The Midwestern System mining hub, comprising Urucum and Corumbá, produced 1.7 Mt in 4Q13, 7.5% below last quarter due to the beginning of the rainy season.
Samarco
The attributable production from the three Samarco plants was in line with 3Q13 and 4Q12.
Pellets
000 metric tons |
|
4Q13 |
|
3Q13 |
|
4Q12 |
|
2013 |
|
2012 |
|
4Q13/3Q13 |
|
4Q13/4Q12 |
|
2013/2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Southeastern System |
|
5,692 |
|
5,088 |
|
5,709 |
|
21,620 |
|
26,144 |
|
11.9 |
% |
-0.3 |
% |
-17.3 |
% |
Nibrasco |
|
2,412 |
|
1,953 |
|
2,260 |
|
8,953 |
|
8,829 |
|
23.5 |
% |
6.7 |
% |
1.4 |
% |
Kobrasco |
|
1,179 |
|
921 |
|
803 |
|
4,349 |
|
4,398 |
|
28.1 |
% |
46.8 |
% |
-1.1 |
% |
Hispanobras(1) |
|
989 |
|
1,112 |
|
1,067 |
|
3,913 |
|
4,261 |
|
-11.1 |
% |
-7.3 |
% |
-8.2 |
% |
Itabrasco |
|
1,112 |
|
1,103 |
|
983 |
|
4,406 |
|
4,007 |
|
0.8 |
% |
13.2 |
% |
10.0 |
% |
Tubarão I and II |
|
0 |
|
0 |
|
597 |
|
0 |
|
4,650 |
|
n.m. |
|
n.m. |
|
n.m. |
|
Southern System |
|
2,413 |
|
2,392 |
|
1,855 |
|
9,095 |
|
8,144 |
|
0.9 |
% |
30.1 |
% |
11.7 |
% |
Fabrica |
|
955 |
|
896 |
|
826 |
|
3,772 |
|
3,634 |
|
6.6 |
% |
15.5 |
% |
3.8 |
% |
Vargem Grande |
|
1,458 |
|
1,496 |
|
1,028 |
|
5,322 |
|
4,510 |
|
-2.5 |
% |
41.8 |
% |
18.0 |
% |
São Luís |
|
0 |
|
0 |
|
46 |
|
0 |
|
3,511 |
|
n.m. |
|
n.m. |
|
n.m. |
|
Oman |
|
2,304 |
|
2,250 |
|
1,763 |
|
8,280 |
|
6,616 |
|
2.4 |
% |
30.7 |
% |
25.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL PELLETS |
|
10,409 |
|
9,731 |
|
9,373 |
|
38,995 |
|
44,415 |
|
7.0 |
% |
11.1 |
% |
-12.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Samarco(2) |
|
2,755 |
|
2,655 |
|
2,717 |
|
10,563 |
|
10,652 |
|
3.8 |
% |
1.4 |
% |
-0.8 |
% |
(1) Production attributable to Vale on a pro forma basis. In July 2012, we entered into a leasing contract for the Hispanobras pelletizing operation. As a consequence, their production is being consolidated 100% on a pro forma basis.
(2) Vales attributable production capacity of 50%.
Production overview
Excluding Samarcos attributable production of 10.6 Mt, Vales pellets production was 39.0 Mt in 2013. Comparing to 2012, output was 12.2% lower reflecting the shutdown of the Tubarão I and II and the São Luis pellet plants.
Pellet production reached 10.4 Mt, a new record for a fourth quarter, 7.0% and 11.1% higher than in 3Q13 and 4Q12, respectively, mostly due to the good operational performance of Oman and the recovery from maintenance stoppage in the Southeastern System. The share of direct reduction pellets in our production amounted to 36% in 4Q13, in line with last quarter.
Southeastern System
Production volumes at the Tubarão operating plants Nibrasco, Kobrasco, Hispanobras and Itabrasco increased to 5.7 Mt in 4Q13 from 5.1 Mt in 3Q13, due to the recovery from scheduled maintenance stoppages at Nibrasco and Kobrasco during last quarter.
Southern System
Fábrica produced 0.96 Mt, 6.6% and 15.5% higher than 3Q13 and 4Q12, respectively, due to the recovery from the impact of shortage of pellet feed in the Southern System mines in 3Q13. In 4Q13, Vargem Grande output was 1.5 Mt, slightly below the previous quarter, but 41.8% above 4Q12, given weak demand in that period.
Oman operations
The Oman operations produced 2.3 Mt of direct reduction pellets in 4Q13, in line with last quarter.
Samarco
Attributable production from the three Samarco plants was in line with 3Q13 and 4Q12.
The start-up of Samarcos fourth pellet plant, and expansion of mine, pipeline and maritime terminal infrastructure is expected for 2Q14. Samarco IV pellet plant has a nominal capacity of 8.3 Mtpy.
Manganese ore and ferroalloys
000 metric tons |
|
4Q13 |
|
3Q13 |
|
4Q12 |
|
2013 |
|
2012 |
|
4Q13/3Q13 |
|
4Q13/4Q12 |
|
2013/2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MANGANESE ORE |
|
638 |
|
621 |
|
668 |
|
2,378 |
|
2,365 |
|
2.8 |
% |
-4.4 |
% |
0.5 |
% |
Azul |
|
490 |
|
508 |
|
523 |
|
1,850 |
|
1,863 |
|
-3.5 |
% |
-6.4 |
% |
-0.7 |
% |
Urucum |
|
117 |
|
82 |
|
92 |
|
411 |
|
327 |
|
42.9 |
% |
26.8 |
% |
25.9 |
% |
Other mines |
|
31 |
|
31 |
|
52 |
|
116 |
|
176 |
|
-0.1 |
% |
-39.7 |
% |
-33.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FERROALLOYS |
|
50 |
|
52 |
|
59 |
|
176 |
|
390 |
|
-4.0 |
% |
-14.5 |
% |
-54.9 |
% |
Brazil |
|
50 |
|
52 |
|
59 |
|
176 |
|
206 |
|
-4.0 |
% |
-14.5 |
% |
-14.9 |
% |
Dunkerque |
|
0 |
|
0 |
|
0 |
|
0 |
|
104 |
|
n.m. |
|
n.m. |
|
n.m. |
|
Mo I Rana |
|
0 |
|
0 |
|
0 |
|
0 |
|
79 |
|
n.m. |
|
n.m. |
|
n.m. |
|
Production overview
In 2013, manganese ore production was in line with 2012. The output of ferroalloys was 54.9% lower than in 2012, due to the sale of the European operations Dunkerque and Mo I Rana concluded at the end of 2012.
The production of manganese ore, on a quarter-on-quarter basis, reached 638,000 t against 621,000 t in 3Q13.
Manganesse ore production
Output from the Carajás Azul manganese mine decreased by 3.5% and 6.4% against 3Q13 and 4Q12, respectively, reaching 490,000 t as a result of stoppages for corrective maintenance.
In 4Q13, production from Urucum increased by 42.9% against the previous quarter, recovering from scheduled maintenance in 3Q13. We are working in a mine expansion, which will allow significant production increases as of next year.
Ferroalloy production
Production of ferroalloy was 4.0% and 14.5% lower than in 3Q13 and 4Q12, respectively, due to scheduled maintenance stoppage in 4Q13.
Ferroalloy quarterly production was comprised of 32,000 t of ferrosilicon manganese alloys (FeSiMn), 11,000 t of high-carbon manganese alloys (FeMnHc) and 7,000 t of medium-carbon manganese alloys (FeMnMC).
As previously mentioned, on October 31st 2012, we concluded the sale of our managanese ferroalloys operations in Europe, Vale Manganèse France, located in Dunkerque, and Vale Manganese Norway, located in Mo I Rana.
Coal
000 metric tons |
|
4Q13 |
|
3Q13 |
|
4Q12 |
|
2013 |
|
2012 |
|
4Q13/3Q13 |
|
4Q13/4Q12 |
|
2013/2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
METALLURGICAL COAL |
|
1,850 |
|
1,823 |
|
1,471 |
|
6,885 |
|
5,083 |
|
1.5 |
% |
25.8 |
% |
35.5 |
% |
Moatize |
|
401 |
|
706 |
|
648 |
|
2,373 |
|
2,501 |
|
-43.2 |
% |
-38.2 |
% |
-5.1 |
% |
Carborough Downs |
|
814 |
|
409 |
|
373 |
|
2,447 |
|
911 |
|
99.0 |
% |
117.9 |
% |
168.6 |
% |
Integra Coal |
|
433 |
|
561 |
|
286 |
|
1,410 |
|
962 |
|
-22.8 |
% |
51.4 |
% |
46.6 |
% |
Others |
|
202 |
|
147 |
|
163 |
|
656 |
|
709 |
|
37.5 |
% |
24.2 |
% |
-7.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THERMAL COAL |
|
408 |
|
553 |
|
480 |
|
1,878 |
|
1,999 |
|
-26.2 |
% |
-15.0 |
% |
-6.1 |
% |
Moatize |
|
277 |
|
462 |
|
319 |
|
1,444 |
|
1,267 |
|
-40.0 |
% |
-13.0 |
% |
14.0 |
% |
Integra Coal |
|
34 |
|
24 |
|
71 |
|
87 |
|
351 |
|
41.1 |
% |
-52.4 |
% |
-75.1 |
% |
Others |
|
97 |
|
67 |
|
91 |
|
347 |
|
381 |
|
45.1 |
% |
7.3 |
% |
-9.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL COAL |
|
2,258 |
|
2,377 |
|
1,951 |
|
8,763 |
|
7,082 |
|
-5.0 |
% |
15.7 |
% |
23.7 |
% |
Production overview
Vale achieved 8.8 Mt of coal production in 2013, 23.7% above the 2012 figure but 3.6 Mt below our 2013 annual guidance for coal. Production of metallurgical and thermal coal was 6.9 Mt and 1.9 Mt, respectively. This was a result of Moatizes ramp-up and of a significant improvement in the performance of Carborough Downs (CD).
Total coal output in 4Q13 reached 2.3 Mt, 15.7% above 4Q12, mostly due to the performance of CD.
Australian operations
CD reached a new annual record at 2.447 Mt in 2013, 76.0% above the 2011 output.
In 4Q13, CD, which is a 100% metallurgical coal underground mining operation, obtained a new quarterly record, at 814,000 t, showing good performance after the longwall move in 3Q13.
In 2013, Integra Coal production of semi-soft metallurgical coal was 1.410 Mt and thermal coal was 87,000 t. Met coal was prioritized over thermal coal, resulting in lower production of thermal coal during the year.
In 4Q13, we had operational problems with the longwall cutting mechanism at Integra Coal, which impacted our underground operation. Additionaly, adverse weather conditions impacted production from our open pit operations. These two factors affected Integra
coal production in 4Q13, which included 433,000 t of metallurgical and 34,000 t of thermal coal.
Production from our other Australian mines was 299,000 t in 4Q13, an increase of 39.7% from the 214,000 t in 3Q13, due to good operational performance.
Moatize operations
Moatize produced 3.816 Mt , of which 2.373 Mt of met coal and 1.444 Mt of thermal coal.
The ramp-up of the first phase of the Moatize coal project is being temporarily restricted by the existing limitations of the logistics infrastructure railway and port which do not allow for total utilization of the mine nominal capacity of 11 Mtpy. Additionaly, lack of availability of explosives constrained blasting operations and impacted production volumes.
The conclusion of the Nacala corridor project will eliminate the above mentioned logistics bottleneck. Availability of explosives on site has been fully restored.
Nickel
000 metric tons |
|
4Q13 |
|
3Q13 |
|
4Q12 |
|
2013 |
|
2012 |
|
4Q13/3Q13 |
|
4Q13/4Q12 |
|
2013/2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canada |
|
43 |
|
35 |
|
41 |
|
163 |
|
157 |
|
22.5 |
% |
5.0 |
% |
3.7 |
% |
Sudbury |
|
18 |
|
16 |
|
15 |
|
69 |
|
65 |
|
9.7 |
% |
16.0 |
% |
5.9 |
% |
Thompson |
|
6 |
|
5 |
|
6 |
|
24 |
|
24 |
|
30.9 |
% |
-1.3 |
% |
1.0 |
% |
Voiseys Bay |
|
17 |
|
12 |
|
18 |
|
63 |
|
62 |
|
36.6 |
% |
-8.7 |
% |
1.8 |
% |
Ore from thrid parties(1) |
|
2 |
|
2 |
|
1 |
|
6 |
|
6 |
|
18.1 |
% |
201.8 |
% |
8.7 |
% |
Indonesia |
|
21 |
|
22 |
|
23 |
|
79 |
|
69 |
|
-5.5 |
% |
-9.1 |
% |
14.1 |
% |
New Caledonia |
|
2 |
|
5 |
|
0 |
|
16 |
|
4 |
|
-56.2 |
% |
n.m. |
|
262.9 |
% |
Brazil |
|
2 |
|
0 |
|
0 |
|
2 |
|
6 |
|
n.m. |
|
n.m. |
|
-67.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL NICKEL |
|
68 |
|
62 |
|
64 |
|
260 |
|
237 |
|
9.6 |
% |
6.1 |
% |
9.9 |
% |
(1) External feed purchased from third parties and processed into finished nickel in our operations
Production overview
Production of nickel reached 260,000 t in 2013, setting the highest annual mark since 2008.
Total nickel production in 4Q13 was 68,000 t, 9.6% higher than in 3Q13.
Canadian Operations
In 4Q13, production from the Sudbury mine feed reached 18,000 t, 9.7% higher than in 3Q13 and 16.0% higher than in 4Q12. Sudbury mines and mill completed their annual scheduled maintenance in 3Q13 and operated fully in 4Q13.
Production from Thompson mine feed in 4Q13 was 6,300 t, 30.9% higher than in 3Q13. Thompson operation underwent annual scheduled maintenance in the mines, mill, smelter and refinery in 3Q13 and operated fully in 4Q13.
Production sourced from Voiseys Bay Nickel concentrates amounted to 16,900 t in 4Q13, an increase of 36.6% in relation to 3Q13. Voiseys Bay feed was processed by the Copper Cliff smelter at Sudbury while Thompson was undergoing annual maintenance.
Indonesian Operations
In 4Q13, production of nickel in matte from our Indonesian Sorowako operations totaled 18,300 t. In November, the operation suffered failures leading to matte run-outs in two of its four operating furnaces. Shutdown and containment procedures protected the operation. The furnaces were repaired and are now fully operational.
New Caledonia Operations
In 2013, VNC produced 16,300 t of nickel contained in NiO and NHC and 1,117 t of cobalt.
Quarterly output was 2,054 t of nickel, comprised of 777 t of utility nickel sourced from NHC (934 t) and NiO (343 t). VNC underwent maintenance at the beginning of 4Q13, but when operations recommenced in November, VNC experienced a failure of its effluent placement and dispersion line. There were no environmental impacts from the incident. The operation was shutdown and the repair took 6 weeks. The repair work was completed successfully and the plant began a sequential restart on January 1, 2014. By January 22, all phases of the plant (2 HPALs, the refinery and fluid bed reactor - FBR) were in operation. The mine continued to operate during the plant outage.
Brazillian Operation
Production at Onça Puma was 1,900 t of nickel contained in ferronickel. Onça Puma restarted operations in 4Q13 after shutdown in mid-2012 to repair one of its furnaces. In December 2013, the output of Onça Puma was 1,300 t, about 62% of its nominal capacity of 25,000 t per year for one single furnace.
Copper
000 metric tons |
|
4Q13 |
|
3Q13 |
|
4Q12 |
|
2013 |
|
2012 |
|
4Q13/3Q13 |
|
4Q13/4Q12 |
|
2013/2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brazil |
|
53 |
|
48 |
|
36 |
|
184 |
|
123 |
|
8.9 |
% |
47.9 |
% |
49.5 |
% |
Sossego |
|
32 |
|
31 |
|
28 |
|
119 |
|
110 |
|
2.6 |
% |
13.9 |
% |
8.2 |
% |
Salobo |
|
21 |
|
18 |
|
8 |
|
65 |
|
13 |
|
19.9 |
% |
167.3 |
% |
396.1 |
% |
Canada |
|
39 |
|
41 |
|
40 |
|
166 |
|
153 |
|
-5.7 |
% |
-3.5 |
% |
8.5 |
% |
Sudbury |
|
24 |
|
27 |
|
19 |
|
103 |
|
79 |
|
-9.3 |
% |
28.5 |
% |
31.1 |
% |
Thompson |
|
1 |
|
1 |
|
0 |
|
2 |
|
3 |
|
28.2 |
% |
53.0 |
% |
-16.9 |
% |
Voiseys Bay |
|
9 |
|
9 |
|
14 |
|
36 |
|
42 |
|
0.1 |
% |
-37.0 |
% |
-14.8 |
% |
Ore from thrid parties |
|
5 |
|
5 |
|
7 |
|
24 |
|
29 |
|
-0.3 |
% |
-27.3 |
% |
-16.6 |
% |
Chile |
|
1 |
|
3 |
|
4 |
|
11 |
|
14 |
|
-71.2 |
% |
-77.7 |
% |
-21.1 |
% |
Zambia |
|
2 |
|
2 |
|
1 |
|
9 |
|
1 |
|
5.7 |
% |
68.8 |
% |
583.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL COPPER |
|
95 |
|
95 |
|
81 |
|
370 |
|
292 |
|
0.0 |
% |
16.8 |
% |
26.9 |
% |
(1) Vales attributable production capacity of 40%.
Production overview
Copper production achieved an annual record of 370,000 t in 2013, 5,000 t more than our guidance for the year. The good performance was mainly a result of Salobos ramp-up, which was responsible for 18% of the 2013 production.
In 4Q13, copper output was 94,600 t, matching the previous quarterly production record.
Brazillian Operations
Production of copper in 4Q13 at the Sossego mine totaled 31,700 t in the form of copper in concentrates, in line with the previous quarter.
Along with a successful ramp-up, Salobo I produced 21,100 t of copper in concentrates and achieved 84% of its nominal capacity. It also produced 40,300 troy ounces (oz) of gold as by-products. In December, Salobo achieved output of 8,148 t of copper in concentrates, which is only slightly lower than the plants nominal capacity.
Canadian Operations
Sudbury production was 24,200 t, 9.3% lower than 3Q13. In early 4Q13, the Clarabelle mill experienced a series of minor operational breakdowns after maintenance in 3Q13, reducing production of copper concentrate.
Voiseys Bay production was 8,600 t in line with 3Q13, but 37% lower than 4Q12 due to lower
copper grades in the ore mined and scheduled maintenance completed in December 2013.
African Operation
Lubambe, our Zambian JV, is ramping up and delivering 5,500 t of copper in concentrates on a 100% basis (attributable production of 2,200 t). Lubambe has a nominal capacity of 45,000 t per year.
Chile Operation discontinued operation
Output at Tres Valles, in Chile, was 800 t of copper cathodes up to October 31st, 2013, at which time we entered into a process to sell this operation. As previously announced, Vale completed the sale of the operation on December 9th, 2013.
Nickel and copper by-products
|
|
4Q13 |
|
3Q13 |
|
4Q12 |
|
2013 |
|
2012 |
|
4Q13/3Q13 |
|
4Q13/4Q12 |
|
2013/2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COBALT (metric tons) |
|
711 |
|
950 |
|
579 |
|
3,532 |
|
2,273 |
|
-25.1 |
% |
22.8 |
% |
55.4 |
% |
Sudbury |
|
206 |
|
176 |
|
105 |
|
845 |
|
589 |
|
16.8 |
% |
96.8 |
% |
43.4 |
% |
Thompson |
|
84 |
|
121 |
|
22 |
|
292 |
|
96 |
|
-30.9 |
% |
272.6 |
% |
205.2 |
% |
Voiseys Bay |
|
286 |
|
231 |
|
343 |
|
1,256 |
|
1,221 |
|
23.6 |
% |
-16.6 |
% |
2.9 |
% |
VNC |
|
136 |
|
413 |
|
98 |
|
1,117 |
|
315 |
|
-67.1 |
% |
38.6 |
% |
254.3 |
% |
Others |
|
0 |
|
8 |
|
11 |
|
22 |
|
52 |
|
n.m. |
|
n.m. |
|
-57.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PLATINUM (000 oz troy) |
|
43 |
|
35 |
|
22 |
|
145 |
|
134 |
|
21.1 |
% |
99.1 |
% |
8.4 |
% |
Sudbury |
|
43 |
|
35 |
|
22 |
|
145 |
|
134 |
|
21.1 |
% |
99.1 |
% |
8.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PALLADIUM (000 oz troy) |
|
96 |
|
86 |
|
55 |
|
352 |
|
251 |
|
11.3 |
% |
75.8 |
% |
40.2 |
% |
Sudbury |
|
96 |
|
86 |
|
55 |
|
352 |
|
251 |
|
11.3 |
% |
75.8 |
% |
40.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GOLD (000 oz troy) |
|
88 |
|
76 |
|
47 |
|
286 |
|
165 |
|
15.9 |
% |
86.2 |
% |
73.3 |
% |
Sudbury |
|
27 |
|
22 |
|
14 |
|
91 |
|
69 |
|
23.5 |
% |
97.9 |
% |
33.1 |
% |
Sossego |
|
21 |
|
22 |
|
20 |
|
78 |
|
75 |
|
-4.4 |
% |
4.0 |
% |
3.5 |
% |
Salobo |
|
40 |
|
32 |
|
13 |
|
117 |
|
21 |
|
24.9 |
% |
199.4 |
% |
451.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SILVER (000 oz troy) |
|
514 |
|
429 |
|
390 |
|
1,915 |
|
2,012 |
|
20.0 |
% |
31.8 |
% |
-4.8 |
% |
Sudbury |
|
514 |
|
429 |
|
390 |
|
1,915 |
|
2,012 |
|
20.0 |
% |
31.8 |
% |
-4.8 |
% |
Cobalt
2013 cobalt production of 3,532 t was the highest yearly production.
Output of cobalt reached 711 t in 4Q13, 25.1% lower than 3Q13, mainly reflecting the decrease in VNC production, which totaled 136 t in 4Q13, due to the failure of the effluent placement line.
Platinum and palladium
Platinum output was 43,000 oz and palladium was 96,000 oz, 21.1% and 11.3% above 3Q13, respectively.
Gold
In 2013, gold achieved a record output of 286,000 oz.
Gold achieved the all-time high production figure of 88,000 oz in 4Q13, 15.9% higher than 3Q13, due to the increase in Salobos output.
Potash
000 metric tons |
|
4Q13 |
|
3Q13 |
|
4Q12 |
|
2013 |
|
2012 |
|
4Q13/3Q13 |
|
4Q13/4Q12 |
|
2013/2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POTASH |
|
126 |
|
132 |
|
161 |
|
492 |
|
549 |
|
-4.7 |
% |
-21.6 |
% |
-10.3 |
% |
Taquari-Vassouras |
|
126 |
|
132 |
|
161 |
|
492 |
|
549 |
|
-4.7 |
% |
-21.6 |
% |
-10.3 |
% |
Phosphates
000 metric tons |
|
4Q13 |
|
3Q13 |
|
4Q12 |
|
2013 |
|
2012 |
|
4Q13/3Q13 |
|
4Q13/4Q12 |
|
2013/2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PHOSPHATE ROCK |
|
2,286 |
|
2,104 |
|
2,060 |
|
8,277 |
|
7,982 |
|
8.6 |
% |
10.9 |
% |
3.7 |
% |
Brazil |
|
1,234 |
|
1,229 |
|
1,188 |
|
4,731 |
|
4,772 |
|
0.4 |
% |
3.9 |
% |
-0.9 |
% |
Bayóvar |
|
1,051 |
|
875 |
|
872 |
|
3,546 |
|
3,209 |
|
20.2 |
% |
20.5 |
% |
10.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MAP(1) |
|
305 |
|
229 |
|
307 |
|
1,128 |
|
1,201 |
|
33.0 |
% |
-0.7 |
% |
-6.1 |
% |
TSP(2) |
|
252 |
|
187 |
|
247 |
|
905 |
|
913 |
|
34.4 |
% |
1.9 |
% |
-0.8 |
% |
SSP(3) |
|
459 |
|
595 |
|
587 |
|
2,102 |
|
2,226 |
|
-22.9 |
% |
-21.8 |
% |
-5.6 |
% |
DCP(4) |
|
127 |
|
85 |
|
113 |
|
444 |
|
511 |
|
49.5 |
% |
13.1 |
% |
-13.2 |
% |
(1) Monoammonium phosphate
(2) Triple superphosphate
(3) Single superphosphate
(4) Dicalcium phosphate
Production overview
Production of potash totaled 492,000 t in 2013, 58,000 t below our guidance for the period.
Phosphate rock output was 8.3 Mt in 2013, 0.2 Mt below our guidance for 2013, due to the performance of the Brazilian operations.
Potash
Production of potash totaled 126,000 t in 4Q13, 4.7% and 21.6% lower than in 3Q13 and in 4Q12, respectively, due to a maintenance stoppage of Taquari-Vassouras in 4Q13.
Phosphate Rock
Total production of phosphate rock achieved a new record, due to the ramp-up of Bayóvar and the good operational performance of the Brazilian mines. Output was 8.6% higher in 4Q13 than in 3Q13.
In 4Q13, Bayóvar produced 1.1 Mt, a new record, being 20.2% higher than 3Q13 due to the
recovery from maintenance stoppage in last quarter.
MAP
In 4Q13, the production of MAP (monoammonium phosphate) totaled 305,000 t, 33.0% higher on a quarter-over-quarter basis as a consequence of the recovery from annual scheduled maintenance stoppages in 3Q13.
TSP
The output of TSP also increased against 3Q13, 34.4%, due to the recovery from a maintenance stoppage at Uberaba.
SSP
Production of SSP (single superphosphate) was 22.9% lower than in 3Q13, due to the annual maintenance stoppage during 4Q13.
DCP
DCP (dicalcium phosphate) production was 127,000 t, 49.5% higher than in 3Q13, due to the recovery from a scheduled maintenance stoppage.
Nitrogen
000 metric tons |
|
4Q13 |
|
3Q13 |
|
4Q12 |
|
2013 |
|
2012 |
|
4Q13/3Q13 |
|
4Q13/4Q12 |
|
2013/2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMMONIA |
|
39 |
|
55 |
|
143 |
|
347 |
|
475 |
|
-28.3 |
% |
-72.5 |
% |
-27.0 |
% |
UREA |
|
0 |
|
0 |
|
143 |
|
219 |
|
483 |
|
n.m. |
|
n.m. |
|
-54.6 |
% |
NITRIC ACID |
|
117 |
|
110 |
|
117 |
|
416 |
|
478 |
|
6.3 |
% |
-0.4 |
% |
-12.9 |
% |
AMMONIUM NITRATE |
|
123 |
|
112 |
|
120 |
|
419 |
|
490 |
|
9.8 |
% |
2.4 |
% |
-14.5 |
% |
Ammonia and Urea Production
In 4Q13, ammonia production decreased by 72.5% compared to production in 4Q12 due to the sale of Araucária on June 1st, 2013. Araucária operation produced nitrogens, with an annual production capacity of approximately 1.1 million tons of ammonia and urea.
As mentioned previously, we no longer produce urea and ammonia is being produced exclusively in Cubatão.
Nitric Acid and Ammonium Production
The output of nitric acid and ammonium nitrate was in line with 3Q13.
For further information. please contact:
+55-21-3814-4540
Rogério T. Nogueira: rogerio.nogueira@vale.com
Viktor Moszkowicz: viktor.moszkowicz@vale.com
Carla Albano Miller: carla.albano@vale.com
Andrea Gutman: andrea.gutman@vale.com
Marcelo Bonança Correa: marcelo.bonanca@vale.com
Marcelo Lobato: marcelo.lobato@vale.com
Marcio Loures Penna: marcio.penna@vale.com
Samantha Pons: samantha.pons@vale.com
This press release may include statements that present Vales 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 Vales annual report on Form 20-F.
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. | |
|
| |
|
By: |
/s/ Rogerio T. Nogueira |
Date: February 26, 2014 |
|
Rogerio T. Nogueira |
|
|
Director of Investor Relations |