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 2015
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- .)
|
2014 and 4Q14 ProductionReport |
Production Highlights
Rio de Janeiro, February 19, 2015 Vale S.A. (Vale) delivered a strong operational performance in 4Q14 and in 2014, with production records in iron ore, nickel, copper and gold. Iron ore inventories decreased by 4.8 Mt in 4Q14 supported by record shipments in the quarter.
Iron Ore
· Annual supply record of 331.6 Mt(1) in 2014, including own production record of 319.2 Mt and 12.3 Mt of ore acquired from third parties.
· Annual production record in Carajás of 119.7 Mt in 2014, 14.8 Mt higher that in 2013.
· Annual production in the Southern System of 86.3 Mt in 2014, the highest annual mark since 2007, 7.3 Mt higher than in 2013.
· Quarterly production record for a fourth quarter of 83.0 Mt in 4Q14, 1.7 Mt higher than in 4Q13.
· Quarterly production record in Carajás of 34.9 Mt, 2.7 Mt higher than in 3Q14 and 3.3 Mt higher than in 4Q13.
· Quarterly transportation record of 32.9 Mt in the Estrada de Ferro Carajás (EFC) railway, 2.1 Mt higher than in 4Q13.
· Quarterly shipments record of 32.8 Mt in the Ponta da Madeira port, 1.5 Mt higher than in 4Q13.
Pellets
· Annual production, excluding Samarco´s output, of 43.0 Mt in 2014, just 0.8 Mt below our target for the year and 4.0 Mt higher than in 2013.
· Annual production record in Oman of 8.6 Mt in 2014, 0.3 Mt higher than in 2013.
· Annual production record in Samarco of 12.1 Mt (attributable production) in 2014, 1.5 Mt higher than in 2013.
· Quarterly production record, excluding Samarco´s output, for a fourth quarter of 11.6 Mt in 4Q14, 0.2 Mt higher than in 3Q14 and 1.2 Mt higher than in 4Q13.
· Quarterly production record in Oman of 2.4 Mt, 0.1 Mt higher than in 3Q14.
· Quarterly production record in Samarco of 3.5 Mt (attributable production) in 4Q14, 0.2 Mt higher than in 3Q14 and 2.7 Mt higher than in 4Q13.
Nickel
· Annual production of 275,000 t, the highest annual mark since 2008, despite the almost two month stoppage of VNC´s operation during the year.
· Annual production record in VNC of 19,000 t in 2014, 3,000 t higher than in 2013.
(1) Excluding Samarcos attributable production.
· Annual production record in Onça Puma of 21,000 t in 2014, 19,000 t higher than in 2013.
· Annual production record at PT Vale Indonesia Tbk of 78,000 t of nickel in matte.
· Quarterly production record of 73,600 t, 1,500 t higher than in 3Q14 and 5,700 t higher than in 4Q13.
· Quarterly production of 6,200 t at VNC, the second best quarterly result for VNC finished nickel production and 2,400 t higher than in 3Q14 and 4,100 t higher than in 4Q13.
Copper
· Annual production record of 379,700 t in 2014, 9,600 t higher than in 2013.
· Annual production record at Salobo of 98,000 t in 2014, 33,000 t higher than in 2013.
· Quarterly production record of 105,400 t, 600 t higher than in 3Q14 and 10,800 t higher that in 4Q13.
· Quarterly production record at Salobo of 31,600 t, 5,700 t higher than in 3Q14 and 10,500 t higher than in 4Q13.
Gold
· Annual production record of 321,000 oz in 2014, 35,000 oz higher than in 2013.
· Quarterly production record of 93,600 oz, 9,600 oz higher than in 3Q14 and 5,300 oz higher than in 4Q13.
Coal
· Annual production of 8.6 Mt in 2014, 0.1 Mt lower than in 2013.
· Annual production record in Moatize of 4.9 Mt in 2014, 1.1 Mt higher than in 2013.
· Quarterly production of 2.3 Mt, slightly lower than in 3Q14, negatively impacted by the stoppage of the Integra coal mine in Australia.
· Quarterly production record in Moatize of 1.4 Mt, 0.1 Mt higher than in 3Q14 and 0.8 Mt higher than in 4Q13.
Phosphate Rock
· Annual production of 8.4 Mt in 2014, 0.1 Mt higher than in 2013, due to the good performance of Bayóvar.
Production Summary
000 metric tons |
|
4Q14 |
|
3Q14 |
|
4Q13 |
|
2014 |
|
2013 |
|
4Q14/3Q14 |
|
4Q14/4Q13 |
|
2014/2013 |
|
Iron ore(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Own production |
|
82.973 |
|
85.731 |
|
81.251 |
|
319.215 |
|
299.795 |
|
-3,2 |
% |
2,1 |
% |
6,5 |
% |
Third parties Purchases |
|
3.324 |
|
2.923 |
|
3.378 |
|
12.341 |
|
10.597 |
|
13,7 |
% |
-1,6 |
% |
16,5 |
% |
Total |
|
86.297 |
|
88.654 |
|
84.629 |
|
331.556 |
|
310.392 |
|
-2,7 |
% |
2,0 |
% |
6,8 |
% |
Pellets(1) |
|
11.642 |
|
11.444 |
|
10.409 |
|
42.965 |
|
38.995 |
|
1,7 |
% |
11,8 |
% |
10,2 |
% |
Manganese |
|
723 |
|
654 |
|
638 |
|
2.352 |
|
2.378 |
|
10,6 |
% |
13,3 |
% |
-1,1 |
% |
Coal |
|
2.310 |
|
2.340 |
|
2.258 |
|
8.645 |
|
8.763 |
|
-1,3 |
% |
2,3 |
% |
-1,4 |
% |
Nickel |
|
73,6 |
|
72,1 |
|
67,9 |
|
275 |
|
260 |
|
2,1 |
% |
8,4 |
% |
5,7 |
% |
Copper(2) |
|
105,4 |
|
104,8 |
|
94,6 |
|
379,7 |
|
370,1 |
|
0,6 |
% |
11,4 |
% |
2,6 |
% |
Potash |
|
147 |
|
140 |
|
126 |
|
492 |
|
492 |
|
5,1 |
% |
16,4 |
% |
0,0 |
% |
Phosphate rock |
|
2.209 |
|
2.158 |
|
2.286 |
|
8.421 |
|
8.277 |
|
2,4 |
% |
-3,4 |
% |
1,7 |
% |
(1) Excluding Samarcos attributable production.
(2) Including Lubambes attributable production.
Iron ore
000 metric tons |
|
4Q14 |
|
3Q14 |
|
4Q13 |
|
2014 |
|
2013 |
|
4Q14/3Q14 |
|
4Q14/4Q13 |
|
2014/2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Northern System |
|
34.858 |
|
32.153 |
|
31.584 |
|
119.657 |
|
104.885 |
|
8,4 |
% |
10,4 |
% |
14,1 |
% |
Carajás |
|
34.858 |
|
32.153 |
|
31.584 |
|
119.657 |
|
104.885 |
|
8,4 |
% |
10,4 |
% |
14,1 |
% |
Southeastern System |
|
26.448 |
|
28.714 |
|
28.205 |
|
107.458 |
|
109.453 |
|
-7,9 |
% |
-6,2 |
% |
-1,8 |
% |
Itabira |
|
9.628 |
|
9.579 |
|
9.147 |
|
35.489 |
|
34.001 |
|
0,5 |
% |
5,3 |
% |
4,4 |
% |
Minas Centrais |
|
7.225 |
|
8.975 |
|
9.130 |
|
33.049 |
|
37.752 |
|
-19,5 |
% |
-20,9 |
% |
-12,5 |
% |
Mariana |
|
9.595 |
|
10.159 |
|
9.928 |
|
38.920 |
|
37.700 |
|
-5,5 |
% |
-3,4 |
% |
3,2 |
% |
Southern System |
|
20.125 |
|
23.236 |
|
19.732 |
|
86.264 |
|
78.954 |
|
-13,4 |
% |
2,0 |
% |
9,3 |
% |
Paraopeba |
|
6.165 |
|
7.454 |
|
6.877 |
|
28.220 |
|
26.042 |
|
-17,3 |
% |
-10,4 |
% |
8,4 |
% |
Vargem Grande |
|
6.159 |
|
6.755 |
|
5.031 |
|
25.032 |
|
21.941 |
|
-8,8 |
% |
22,4 |
% |
14,1 |
% |
Minas Itabirito |
|
7.802 |
|
9.027 |
|
7.825 |
|
33.012 |
|
30.971 |
|
-13,6 |
% |
-0,3 |
% |
6,6 |
% |
Midwestern System |
|
1.542 |
|
1.629 |
|
1.729 |
|
5.836 |
|
6.503 |
|
-5,3 |
% |
-10,8 |
% |
-10,3 |
% |
Corumbá |
|
1.015 |
|
1.081 |
|
1.208 |
|
3.782 |
|
4.496 |
|
-6,1 |
% |
-16,0 |
% |
-15,9 |
% |
Urucum |
|
527 |
|
548 |
|
521 |
|
2.054 |
|
2.007 |
|
-3,7 |
% |
1,1 |
% |
2,3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL IRON ORE |
|
82.973 |
|
85.731 |
|
81.251 |
|
319.215 |
|
299.795 |
|
-3,2 |
% |
2,1 |
% |
6,5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Parties Purchase (TPP) |
|
3.324 |
|
2.923 |
|
3.378 |
|
12.341 |
|
10.597 |
|
13,7 |
% |
-1,6 |
% |
16,5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL IRON ORE + TPP |
|
86.297 |
|
88.654 |
|
84.629 |
|
331.556 |
|
310.392 |
|
-2,7 |
% |
2,0 |
% |
6,8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Samarco(1) |
|
3.823 |
|
3.761 |
|
2.780 |
|
13.146 |
|
10.887 |
|
1,6 |
% |
37,5 |
% |
20,7 |
% |
(1) Vales attributable production capacity of 50%.
Production overview
Vales own iron ore production, excluding iron ore acquired from third parties and Samarcos attributable production, reached the record of 319.2 Mt in 2014, 19.4 Mt higher than in 2013 and 7.2 Mt higher than our guidance for 2014.
In 2014, Carajás achieved the production record of 119.7 Mt, representing an increase of 14.8 Mt in relation to 2013.
The Southern System produced 86.3 Mt in 2014 and achieved its best annual mark since 2007. This 2014 production represents an increase of over 9% against the 79.0 Mt produced in 2013.
On a quarterly basis, Vales iron ore production ex-Samarco´s attributable production was 83.0 Mt in 4Q14, a new record for a fourth quarter.
Carajás achieved a new historical record with an output of 34.9 Mt in 4Q14, 8.4% and 10.4% higher than in 3Q14 and in 4Q13, respectively.
In 4Q14, Vale transported 32.9 Mt in its Estrada de Ferro Carajás (EFC), a new quarterly record, 2.1 Mt higher than in 4Q13, and its shipments reached 32.8 Mt, also a new quarterly record, 1.5 Mt higher than in 4Q13.
Northern System
This production of 34.9 Mt in Carajás is a result of the ramp-ups of Plant 2 and Serra Leste in 4Q14. Plant 2 produced 4.9 Mt in the quarter, 0.6 Mt more than in 3Q14.
Southeastern System
The Southeastern System, which encompasses the Itabira, Minas Centrais and Mariana mining hubs, produced 26.4 Mt in 4Q14, 7.9% lower than in 3Q14. Despite the good production in Conceição Itabiritos (CI), the Minas Centrais mining hub experienced scheduled maintenance stoppages in 4Q14.
Production in the Itabira mining hub was 0.5% higher than in 3Q14 due to the ramp-up of CI. Output of CI was 2.3 Mt, 0.5 Mt higher than in 3Q14.
Production in the Minas Centrais mining hub was 7.2 Mt in 4Q14, 19.5% and 20.9% lower than in 3Q14 and 4Q13, respectively, as a result of the scheduled maintenance stoppage for the implementation of Brucutu´s 5th production line which will allow the plant´s production to increase by 30% in 2015.
Output in the Mariana mining hub reached 9.6 Mt, 5.5% lower than in 3Q14, as a result of the mining plan for the year.
Southern System
The Southern System, composed of the Paraopeba, Vargem Grande and Minas Itabirito mining hubs, produced 20.1 Mt in 4Q14, 13.4% lower than in 3Q14 due to maintenance stoppage in some units.
Production at the Paraopeba mining hub was 17.3% lower than in 3Q14 mainly due to corrective maintenance in the crushing system.
Production at the Vargem Grande mining hub was 8.8% lower than in 3Q14 due to a corrective maintenance in the conveyor belt.
Production at the Minas Itabirito mining hub was 13.6% lower than in 3Q14, mainly due to the preventive maintenance in the crushing system.
Midwestern System
The Midwestern System, comprising the Urucum and Corumbá mining hubs, produced 1.5 Mt in 4Q14, 0.1 Mt and 0.2 Mt lower than in 3Q14 and in 4Q13, respectively, due to the beginning of the rainy season.
As previously disclosed, production in the Midwestern system was reduced in 2014 for an adjustment in inventory levels. Therefore production was slightly lower than in 2013 without any impact on sales.
Samarco
In 4Q14 Samarco´s pellet feed production (dedicated to pellet production) was 3.8 Mt, 1.6% higher than in 3Q14.
Pellets
000 metric tons |
|
4Q14 |
|
3Q14 |
|
4Q13 |
|
2014 |
|
2013 |
|
4Q14/3Q14 |
|
4Q14/4Q13 |
|
2014/2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Southeastern System |
|
7.058 |
|
6.698 |
|
5.692 |
|
25.385 |
|
21.620 |
|
5,4 |
% |
24,0 |
% |
17,4 |
% |
Tubarão VIII |
|
1.257 |
|
1.039 |
|
0 |
|
2.490 |
|
0 |
|
21,0 |
% |
n.m. |
|
n.m. |
|
Nibrasco |
|
2.382 |
|
2.363 |
|
2.412 |
|
9.464 |
|
8.953 |
|
0,8 |
% |
-1,2 |
% |
5,7 |
% |
Kobrasco |
|
1.200 |
|
1.073 |
|
1.179 |
|
4.574 |
|
4.349 |
|
11,9 |
% |
1,8 |
% |
5,2 |
% |
Hispanobras(1) |
|
1.115 |
|
1.096 |
|
989 |
|
4.409 |
|
3.913 |
|
1,7 |
% |
12,7 |
% |
12,7 |
% |
Itabrasco |
|
1.105 |
|
1.127 |
|
1.112 |
|
4.449 |
|
4.406 |
|
-2,0 |
% |
-0,7 |
% |
1,0 |
% |
Southern System |
|
2.193 |
|
2.426 |
|
2.413 |
|
8.972 |
|
9.095 |
|
-9,6 |
% |
-9,1 |
% |
-1,3 |
% |
Fabrica |
|
780 |
|
882 |
|
955 |
|
3.211 |
|
3.772 |
|
-11,6 |
% |
-18,3 |
% |
-14,9 |
% |
Vargem Grande |
|
1.413 |
|
1.545 |
|
1.458 |
|
5.761 |
|
5.322 |
|
-8,5 |
% |
-3,1 |
% |
8,2 |
% |
Oman |
|
2.391 |
|
2.320 |
|
2.304 |
|
8.608 |
|
8.280 |
|
3,1 |
% |
3,8 |
% |
4,0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL PELLETS |
|
11.642 |
|
11.444 |
|
10.409 |
|
42.965 |
|
38.995 |
|
1,7 |
% |
11,8 |
% |
10,2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Samarco(2) |
|
3.529 |
|
3.318 |
|
2.755 |
|
12.054 |
|
10.563 |
|
6,3 |
% |
28,1 |
% |
14,1 |
% |
(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 12,1 Mt, Vales pellet production reached 43,0 Mt in 2014, 0.8 Mt lower than the target for the year. Pellet production was 10.2% higher than in 2013 as a result of the start-up of the Tubarão VIII and the ramp-up of the Oman pellet plants.
In 4Q14, production achieved 11.6 Mt, a new record for a fourth quarter, being 1.7% and 11.8% higher than in 3Q14 and in 4Q13, respectively.
Southeastern System
Production volumes at the Tubarão operating plants Nibrasco, Kobrasco, Hispanobras, Itabrasco and Tubarão VIII was 7.1 Mt in 4Q14, 5.4% higher than in 3Q14 and 24.0% higher than in 4Q13, mostly due to the ramp-up of Tubarão VIII and the good operational performance of Kobrasco after the scheduled maintenance performed in 3Q14.
Southern System
The Fábrica pellet plant produced 0.8 Mt of pellets in 4Q14, 11.6% and 18.3% lower than in 3Q14 and in 4Q13 respectively, due to restrictions on pellet feed supply from the mine .
The Vargem Grande pellet output was 1.4 Mt, 8.5% and 3.1% lower than in 3Q14 and in 4Q13 respectively, due to a maintenance stoppage carried out in 4Q14.
Oman operations
The Oman operation produced 8.6 Mt and 2.4 Mt of direct reduction pellets in 2014 and 4Q14, respectively, registering a new annual and quarterly record.
Samarco
Samarco´s attributable production was 12.1 Mt in 2014, 1.5 Mt higher than in 2013 and an annual record.
In 4Q14 Samarco´s attributable production reached the record of 3.5 Mt, 6.3% and 28.1% higher than in 3Q14 and in 4Q13, respectively, due to the ramp-up of pellet plant IV, which reached attributable production of 0.9 Mt in the current quarter.
Samarco´s pellet plant IV has a nominal capacity of 8.3 Mtpy.
Manganese ore and ferroalloys
000 metric tons |
|
4Q14 |
|
3Q14 |
|
4Q13 |
|
2014 |
|
2013 |
|
4Q14/3Q14 |
|
4Q14/4Q13 |
|
2014/2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MANGANESE ORE |
|
723 |
|
654 |
|
638 |
|
2.352 |
|
2.378 |
|
10,6 |
% |
13,3 |
% |
-1,1 |
% |
Azul |
|
513 |
|
481 |
|
490 |
|
1.695 |
|
1.850 |
|
6,6 |
% |
4,7 |
% |
-8,4 |
% |
Urucum |
|
177 |
|
158 |
|
117 |
|
601 |
|
411 |
|
12,0 |
% |
51,1 |
% |
46,0 |
% |
Other mines |
|
33 |
|
15 |
|
31 |
|
56 |
|
116 |
|
127,8 |
% |
6,1 |
% |
-51,7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FERROALLOYS |
|
41 |
|
41 |
|
50 |
|
171 |
|
176 |
|
0,7 |
% |
-18,5 |
% |
-2,6 |
% |
Brazil |
|
41 |
|
41 |
|
50 |
|
171 |
|
176 |
|
0,7 |
% |
-18,5 |
% |
-2,6 |
% |
Production overview
In 2014, manganese ore production was slightly lower and the output of ferroalloys was 2.6% lower than in 2013.
Production of manganese ore, on a quarter-on-quarter basis, reached 723,000 t in 4Q14, the best performance for a fourth quarter since 4Q04.
Manganese ore production
Output from the Carajás Azul manganese mine increased by 6.6% when compared to 3Q14, reaching 513,000 t in 4Q14, as a result of the recovery of ore from the tailing dams.
In 4Q14, output from Urucum reached the record of 177,000 t, 12.0% higher than in 3Q14 and 51.1% higher than in 4Q13, mostly driven by operational improvements carried out in its beneficiation plant in 4Q13.
Since 4Q13, we have been processing dumped ore due to the geological conditions in the north section of Morro da Mina. We expect to return to normal levels of production during 1H15 by exploring the south section of the mine.
Ferroalloys production
Production of ferroalloys was in line with 3Q14 and 18.5% lower than in 4Q13 due to a decision to shut down furnaces and sell energy.
Ferroalloy quarterly production was comprised of 21,000 t of ferrosilicon manganese alloys (FeSiMn), 15,100 t of high-carbon manganese alloys (FeMnHc) and 4,800 t of medium-carbon manganese alloys (FeMnMC).
Nickel
Finished production by source
000 metric tons |
|
4Q14 |
|
3Q14 |
|
4Q13 |
|
2014 |
|
2013 |
|
4Q14/3Q14 |
|
4Q14/4Q13 |
|
2014/2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canada |
|
42,1 |
|
41,7 |
|
43,0 |
|
156 |
|
163 |
|
0,9 |
% |
-2,2 |
% |
-4,3 |
% |
Sudbury |
|
15,1 |
|
22,5 |
|
18,0 |
|
64 |
|
69 |
|
-33,1 |
% |
-16,2 |
% |
-7,3 |
% |
Thompson |
|
6,5 |
|
5,1 |
|
6,3 |
|
26 |
|
24 |
|
27,3 |
% |
2,9 |
% |
6,6 |
% |
Voiseys Bay |
|
12,6 |
|
9,1 |
|
16,9 |
|
48 |
|
63 |
|
38,6 |
% |
-25,3 |
% |
-23,4 |
% |
Ore from third parties(1) |
|
8,0 |
|
5,0 |
|
1,9 |
|
18 |
|
6 |
|
57,9 |
% |
320,2 |
% |
171,9 |
% |
Indonesia |
|
20,3 |
|
20,8 |
|
20,9 |
|
79 |
|
79 |
|
-2,6 |
% |
-3,1 |
% |
-0,1 |
% |
New Caledonia |
|
6,2 |
|
3,8 |
|
2,1 |
|
19 |
|
16 |
|
63,9 |
% |
202,8 |
% |
14,8 |
% |
Brazil |
|
5,0 |
|
5,8 |
|
1,9 |
|
21 |
|
2 |
|
-13,3 |
% |
166,4 |
% |
1036,6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL NICKEL |
|
73,6 |
|
72,1 |
|
67,9 |
|
275 |
|
260 |
|
2,1 |
% |
8,4 |
% |
5,7 |
% |
(1) External feed purchased from third parties and processed into finished nickel in our operations
Production overview
Production of nickel reached 275,000 t in 2014. This is Vale´s highest annual production since 2008 despite being short of our annual guidance of 289,000 t.
Nickel production reached 73,600 t in 4Q14, 2.1% and 8.4% higher than in 3Q14 and in 4Q13, respectively. Production in 4Q14 achieved a new record despite the operational issues in Sudbury in 4Q14.
Canadian Operations
In 4Q14, production from Sudbury mine sources was 15,100 t, 33.1% and 16.2% lower than in 3Q14 and 4Q13, respectively. Sudbury experienced operational issues in the smelter and matte processing which restricted throughput in 4Q14.
Production from Thompson mine sources was 6,500 t in 4Q14, 27.3% higher than in 3Q14 and 2.9% higher than 4Q13. Operations resumed after the annual planned maintenance carried out in the month of August and operated normally in the 4th quarter.
Voiseys Bay mine sources production amounted to 12,600 t in 4Q14, 38.6% higher than in 3Q14 and 25.3% lower than in 4Q13.
Commissioning of Long Harbour continues as planned with the initial processing of nickel in matte from PTVI and the processing of nickel from Voisey´s Bay at the end of 2015.
Indonesian Operations
In 4Q14, production of nickel in matte from our Indonesian operations at Sorowako totaled 20,600 t, 6.6% higher than in 3Q14 and 12.5% higher than in 4Q13.
The production of finished nickel from matte sourced from PTVI reached 20,300 t, 3.1% lower than in 3Q14 and 2.6% lower than in 4Q13, respectively.
New Caledonia Operations (VNC)
VNC production of NiO and NHC was 6,700 t in 4Q14, a new record for the operation. VNC continued its ramp up in 4Q14, operating consistently with two HPALs most of the time.
Production of finished products (NHC and Utility Nickel) from VNC totaled 6,200 t in 4Q14.
Brazilian Operation (Onça Puma)
Annual production record at Onça Puma of 21,000 t in 2014, 19,000 t higher than in 2013.
The output was 5,000 t in 4Q14, 13.3% lower than in 3Q14. As disclosed in the 3Q14 production report, a shutdown of approximately ten days was carried out in the 4Q14 to permanently repair the refractory in the rotary kiln furnace.
The operation restarted normally and set the new monthly production record of 2,100 t in the month of December.
Copper
Finished production by source
000 metric tons |
|
4Q14 |
|
3Q14 |
|
4Q13 |
|
2014 |
|
2013 |
|
4Q14/3Q14 |
|
4Q14/4Q13 |
|
2014/2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brazil |
|
58,4 |
|
56,3 |
|
52,8 |
|
208 |
|
184 |
|
3,8 |
% |
10,7 |
% |
13,0 |
% |
Sossego |
|
26,9 |
|
30,4 |
|
31,7 |
|
110 |
|
119 |
|
-11,8 |
% |
-15,2 |
% |
-7,7 |
% |
Salobo |
|
31,6 |
|
25,9 |
|
21,1 |
|
98 |
|
65 |
|
22,0 |
% |
49,5 |
% |
50,9 |
% |
Canada |
|
44,6 |
|
45,8 |
|
38,8 |
|
161 |
|
166 |
|
-2,7 |
% |
15,0 |
% |
-2,9 |
% |
Sudbury |
|
23,3 |
|
30,8 |
|
24,2 |
|
98 |
|
103 |
|
-24,4 |
% |
-3,9 |
% |
-5,6 |
% |
Thompson |
|
0,4 |
|
0,4 |
|
0,7 |
|
2 |
|
2 |
|
6,1 |
% |
-40,2 |
% |
-35,5 |
% |
Voiseys Bay |
|
11,4 |
|
7,4 |
|
8,6 |
|
33 |
|
36 |
|
54,2 |
% |
32,8 |
% |
-8,1 |
% |
Ore from third parties |
|
9,5 |
|
7,2 |
|
5,3 |
|
29 |
|
24 |
|
31,1 |
% |
80,2 |
% |
19,2 |
% |
Zambia (Lubambe) |
|
2,4 |
|
2,6 |
|
2,2 |
|
10 |
|
9 |
|
-9,5 |
% |
9,8 |
% |
17,6 |
% |
Chile |
|
0,0 |
|
0,0 |
|
0,8 |
|
0 |
|
11 |
|
n.m. |
|
n.m. |
|
n.m. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL COPPER |
|
105,4 |
|
104,8 |
|
94,6 |
|
379,7 |
|
370,1 |
|
0,6 |
% |
11,4 |
% |
2,6 |
% |
Production overview
Copper production achieved the new annual record of 379,700 t in 2014. Production was 25,300 t lower than our guidance for the year, mainly impacted by tie-ins between Salobo I and II as we continue to ramp-up the second line of Salobo.
In 4Q14, copper output was 105,400 t, 0.6% and 11.4% higher than in 3Q14 and in 4Q13, respectively, reaching a historical production record.
Brazilian Operations
Production of copper in 4Q14 at the Sossego mine totaled 26,900 t in the form of copper in concentrates, 11.8% and 15,2% lower than in 3Q14 and 4Q13, respectively, due primarily to unplanned maintenance in November at the primary crusher.
Production of copper in 4Q14 at Salobo totaled 31,600 t, a new record for that operation as a result of the ongoing ramp up of Salobo II.
Canadian Operations
Copper produced from Sudbury mine sources reached 23,300 t, 24.4% and 3.8% lower than in 3Q14 and in 4Q13, respectively, as 3Q14 included production from the drawdown of a stockpile
which accumulated during the 2Q14 schedule maintenance shutdown.
Production from Voiseys Bay mine sources was 11,400 t of copper in copper concentrate, 54.2% and 32.8% higher than in 3Q14 and in 4Q13. The Voiseys Bay mill carried out a scheduled maintenance shutdown in 3Q14 and operated fully in the 4th quarter.
African Operation (Lubambe)
Lubambe, our Zambian JV, is ramping up and delivering 6,000 t of copper in concentrates on a 100% basis (attributable production of 2,400 t). Lubambe has a nominal capacity of 45,000 t per year.
Chile Operation discontinued operation
As previously announced, Vale completed the sale of Tres Valles in Chile on December 9th, 2013.
Nickel and copper by-products
Finished production by source
|
|
4Q14 |
|
3Q14 |
|
4Q13 |
|
2014 |
|
2013 |
|
4Q14/3Q14 |
|
4Q14/4Q13 |
|
2014/2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COBALT (metric tons) |
|
1.266 |
|
884 |
|
711 |
|
3.743 |
|
3.532 |
|
43,1 |
% |
77,9 |
% |
6,0 |
% |
Sudbury |
|
226 |
|
320 |
|
206 |
|
833 |
|
845 |
|
-29,5 |
% |
9,8 |
% |
-1,4 |
% |
Thompson |
|
160 |
|
142 |
|
84 |
|
489 |
|
292 |
|
12,1 |
% |
90,8 |
% |
67,5 |
% |
Voiseys Bay |
|
242 |
|
74 |
|
286 |
|
952 |
|
1.256 |
|
225,4 |
% |
-15,4 |
% |
-24,2 |
% |
VNC |
|
629 |
|
294 |
|
136 |
|
1.384 |
|
1.117 |
|
113,9 |
% |
362,9 |
% |
23,9 |
% |
Others |
|
9 |
|
53 |
|
0 |
|
84 |
|
22 |
|
-83,1 |
% |
n.m. |
|
285,7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PLATINUM (000 oz troy) |
|
52 |
|
54 |
|
43 |
|
182 |
|
145 |
|
-2,8 |
% |
21,9 |
% |
25,5 |
% |
Sudbury |
|
52 |
|
54 |
|
43 |
|
182 |
|
145 |
|
-2,8 |
% |
21,9 |
% |
25,5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PALLADIUM (000 oz troy) |
|
111,5 |
|
110,5 |
|
96,2 |
|
398 |
|
352 |
|
0,9 |
% |
16,0 |
% |
13,1 |
% |
Sudbury |
|
111,5 |
|
110,5 |
|
96,2 |
|
398 |
|
352 |
|
0,9 |
% |
16,0 |
% |
13,1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GOLD (000 oz troy) |
|
93,6 |
|
84,0 |
|
88,3 |
|
321 |
|
286 |
|
11,4 |
% |
6,0 |
% |
12,5 |
% |
Sudbury |
|
24,2 |
|
20,5 |
|
26,7 |
|
83 |
|
91 |
|
17,9 |
% |
-9,5 |
% |
-9,2 |
% |
Sossego |
|
20,4 |
|
21,8 |
|
21,3 |
|
78 |
|
78 |
|
-6,6 |
% |
-4,2 |
% |
0,5 |
% |
Salobo |
|
49,0 |
|
41,7 |
|
40,3 |
|
160 |
|
117 |
|
17,6 |
% |
21,7 |
% |
37,5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SILVER (000 oz troy) |
|
717 |
|
274 |
|
514 |
|
1.693 |
|
1.915 |
|
161,2 |
% |
39,4 |
% |
-11,6 |
% |
Sudbury |
|
717 |
|
274 |
|
514 |
|
1.693 |
|
1.915 |
|
161,2 |
% |
39,4 |
% |
-11,6 |
% |
Gold
In 2014, gold achieved a record output of 321,000 oz.
Gold production amounted to 93,600 oz in 4Q14, 11.4% higher than in 3Q14, reaching the best performance ever due to the ramp-up of Salobo.
Cobalt
Cobalt production of 3,743 t in 2014 was a yearly record. Output of cobalt reached 1,266 t in 4Q14, 43.1% higher than in 3Q14, mainly reflecting the increasing processing of Voiseys Bay sources through our Canadian smelters as a result of the end of the planned maintenance shutdowns and also the improved performance of VNC.
Platinum and palladium
Platinum output was 52,000 oz and palladium was 111,500 oz, both in line with the previous quarter.
Coal
000 metric tons |
|
4Q14 |
|
3Q14 |
|
4Q13 |
|
2014 |
|
2013 |
|
4Q14/3Q14 |
|
4Q14/4Q13 |
|
2014/2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
METALLURGICAL COAL |
|
1.790 |
|
1.759 |
|
1.850 |
|
6.443 |
|
6.885 |
|
1,8 |
% |
-3,2 |
% |
-6,4 |
% |
Moatize |
|
987 |
|
828 |
|
401 |
|
3.124 |
|
2.373 |
|
19,1 |
% |
146,2 |
% |
31,7 |
% |
Carborough Downs |
|
573 |
|
620 |
|
814 |
|
1.857 |
|
2.447 |
|
-7,5 |
% |
-29,6 |
% |
-24,1 |
% |
Integra Coal |
|
0 |
|
101 |
|
433 |
|
715 |
|
1.410 |
|
n.m. |
|
n.m. |
|
-49,3 |
% |
Isaac Plains |
|
230 |
|
209 |
|
202 |
|
746 |
|
656 |
|
9,9 |
% |
13,8 |
% |
13,7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THERMAL COAL |
|
520 |
|
582 |
|
408 |
|
2.202 |
|
1.878 |
|
-10,6 |
% |
27,3 |
% |
17,3 |
% |
Moatize |
|
446 |
|
468 |
|
277 |
|
1.784 |
|
1.444 |
|
-4,7 |
% |
60,8 |
% |
23,6 |
% |
Integra Coal |
|
0 |
|
28 |
|
34 |
|
92 |
|
87 |
|
n.m. |
|
n.m. |
|
5,6 |
% |
Isaac Plains |
|
74 |
|
86 |
|
97 |
|
326 |
|
347 |
|
-13,8 |
% |
-23,9 |
% |
-6,2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL COAL |
|
2.310 |
|
2.340 |
|
2.258 |
|
8.645 |
|
8.763 |
|
-1,3 |
% |
2,3 |
% |
-1,4 |
% |
Production overview
Vale achieved 8.6 Mt of coal production in 2014, 1.4% lower than in 2013 and 2.1 Mt lower than our our guidance of 10.7 Mt for the year, mainly due to the worse performance of Carborough Downs (CD) and the stoppage of the Integra Coal mine in the 2H14. Production of metallurgical and thermal coal was 6.4 Mt and 2.2 Mt, respectively.
Total coal output in 4Q14 reached 2.3 Mt, slightly lower than in 3Q14, but 2.3% higher than in 4Q13 due to a strong performance of Moatize.
Australian operations
Production of CD achieved 1.857 Mt in 2014, 0.6 Mt lower than in 2013 impacted by the longwall move in 1Q14 and by difficulties related to the geological structure of the section of the mine accessed in 4Q14.
In 4Q14, CD, which is a 100% metallurgical coal underground mining operation, achieved 573,000 t. Production was 7.5% and 29.6% lower than in 3Q14 and 4Q13, respectively. In 4Q14, the longwall operation faced difficulties due to the geological structure of the mine .
In 2Q14, the Integra Coal mine was placed in care and maintenance, which resulted in the suspension of its longwall activity. The open cut production continued throughout 3Q14 in a reduced capacity until coal production ceased. Last shipment from Integra occurred on September 24th 2014.
In 3Q14, the Isaac Plains mine was also placed in care and maintenance. The open cut production continued throughout 4Q14, until coal production ceased.
Moatize operations
Moatize reached the record of 4.908 Mt in 2014, of which 3.124 Mt of met coal and 1.784 Mt of thermal coal.
In 4Q14 Moatize achieved the new quarterly record of 1.433 Mt, 10.6% higher than in 3Q14. Output was 111.4% higher than in 4Q13, when the lack of explosives negatively impacted production volumes.
The ramp-up of the first phase of the Moatize coal project is currently restricted by the logistics infrastructure railway and port which do not allow for total utilization of the mines nominal capacity of 11 Mtpy.
Gradually the above-mentioned logistics bottleneck will be eliminated as we complete and ramp up the Nacala logistics corridor. In 4Q14 Vale completed the greenfield sections of the railway and successfully transported the first coal cargo all the way from Moatize to the Nacala-a-Velha Port. Some brownfield sections in the railway which are still being upgraded shall be completed by 3Q15.
Potash
000 metric tons |
|
4Q14 |
|
3Q14 |
|
4Q13 |
|
2014 |
|
2013 |
|
4Q14/3Q14 |
|
4Q14/4Q13 |
|
2014/2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POTASH |
|
147 |
|
140 |
|
126 |
|
492 |
|
492 |
|
5,1 |
% |
16,4 |
% |
0,0 |
% |
Taquari-Vassouras |
|
147 |
|
140 |
|
126 |
|
492 |
|
492 |
|
5,1 |
% |
16,4 |
% |
0,0 |
% |
Phosphates
000 metric tons |
|
4Q14 |
|
3Q14 |
|
4Q13 |
|
2014 |
|
2013 |
|
4Q14/3Q14 |
|
4Q14/4Q13 |
|
2014/2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PHOSPHATE ROCK |
|
2.209 |
|
2.158 |
|
2.286 |
|
8.421 |
|
8.277 |
|
2,4 |
% |
-3,4 |
% |
1,7 |
% |
Brazil |
|
1.205 |
|
1.185 |
|
1.234 |
|
4.620 |
|
4.731 |
|
1,6 |
% |
-2,4 |
% |
-2,3 |
% |
Bayóvar |
|
1.004 |
|
973 |
|
1.051 |
|
3.801 |
|
3.546 |
|
3,2 |
% |
-4,5 |
% |
7,2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MAP(1) |
|
278 |
|
248 |
|
305 |
|
1.065 |
|
1.128 |
|
12,4 |
% |
-8,6 |
% |
-5,5 |
% |
TSP(2) |
|
254 |
|
226 |
|
252 |
|
910 |
|
905 |
|
12,7 |
% |
1,0 |
% |
0,5 |
% |
SSP(3) |
|
460 |
|
531 |
|
459 |
|
1.854 |
|
2.102 |
|
-13,4 |
% |
0,3 |
% |
-11,8 |
% |
DCP(4) |
|
135 |
|
121 |
|
127 |
|
502 |
|
444 |
|
11,2 |
% |
5,7 |
% |
13,1 |
% |
(1) Monoammonium phosphate
(2) Triple superphosphate
(3) Single superphosphate
(4) Dicalcium phosphate
Potash
Production of potash totaled 492,000 t in 2014, at the same level of last year and 8.9% lower than our guidance of 540,000 for the year, mainly due to the depletion of the mine.
In 4Q14, potash production totaled 147,000 t, 5,1% higher than in 3Q14, as a result of the resumption of production after corrective maintenance carried out on the conveyor belts in 3Q14. Output was 16,4% higher than in the same period of last year due to a maintenance stoppage occurred in 4Q13.
Phosphate Rock
Phosphate rock output was 8.4 Mt in 2014, 1.7% higher than in 2013, due to the good performance of Bayóvar, and just 0.2 Mt lower than our target for the year.
In 4Q14, Bayóvar output was 1.0 Mt, 3.2% higher than in 3Q14, due to the better performance after a maintenance stoppage. Production was 4.5% lower than in 4Q13, due to the maintenance stoppage in the conveyor belts carried out in 4Q14.
The good operational performance of the Brazilian mines in 4Q14 against 3Q14 was due to the improved performance after the completion of a scheduled maintenance stoppage in Cajati carried out last quarter.
MAP
In 4Q14, the production of MAP (monoammonium phosphate) totaled 278,000 t, 12,4% higher than in 3Q14, as a result of higher production in Uberaba due to the recovery of the annual maintenance stoppage which occurred in last quarter.
The Uberaba industrial complex, located in Minas Gerais, produces sulphuric acid, phosphoric acid, TSP, SSP, DCP and MAP.
TSP
The output of TSP (Triple superphosphate) was 254,000 t in 4Q14, 12.7% higher than in 3Q14, reflecting operational improvements achieved after the annual maintenance stoppage carried out in Uberaba during the last quarter.
SSP
Production of SSP (single superphosphate) was 13.4% lower than in 3Q14, due to the corrective maintenance stoppage in Araxá in 4Q14.
DCP
DCP (dicalcium phosphate) production was 135,000 t, 11.2% higher than in 3Q14, reflecting improvement in operational performance after the maintenance stoppage carried out in Cajati last quarter.
Nitrogen
000 metric tons |
|
4Q14 |
|
3Q14 |
|
4Q13 |
|
2014 |
|
2013 |
|
4Q14/3Q14 |
|
4Q14/4Q13 |
|
2014/2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMMONIA |
|
35 |
|
48 |
|
39 |
|
178 |
|
347 |
|
-27,0 |
% |
-11,1 |
% |
-48,6 |
% |
UREA |
|
0 |
|
0 |
|
0 |
|
0 |
|
219 |
|
n.m. |
|
n.m. |
|
n.m. |
|
NITRIC ACID |
|
120 |
|
121 |
|
117 |
|
469 |
|
416 |
|
-1,1 |
% |
2,7 |
% |
12,6 |
% |
AMMONIUM NITRATE |
|
125 |
|
129 |
|
123 |
|
485 |
|
419 |
|
-2,9 |
% |
2,2 |
% |
15,8 |
% |
Ammonia and Urea Production
In 4Q14, ammonia production was 35,000 t, 27.0% lower than in 3Q14 due to maintenance stoppage.
On June 1st, 2013 we sold the Araucária operation which produced nitrogen and had an annual production capacity of approximately 1.1 million tons of ammonia and urea.
Nitric Acid and Ammonium Nitrate Production
Production of nitric acid and ammonium nitrate was in line with the last quarter.
For further information.please contact:
+55-21-3814-4540
Rogério T. Nogueira: rogerio.nogueira@vale.com
Andre Figueiredo: andre.figueiredo@vale.com
Carla Albano Miller: carla.albano@vale.com
Fernando Mascarenhas: Fernando.mascarenhas@vale.com
Andrea Gutman: andrea.gutman@vale.com
Claudia Rodrigues: claudia.rodrigues@vale.com
Marcio Loures Penna: marcio.penna@vale.com
Mariano Szachtman: mariano.szachtman@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 ValoresMobiliários (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. (Registrant) | |
|
| |
|
By: |
/s/ Rogerio T. Nogueira |
Date: February 19, 2015 |
|
Rogerio T. Nogueira |
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|
Director of Investor Relations |