Brazilian miner Vale hints at Q4 production boost

RIO DE JANEIRO, Oct 20 (Reuters): Brazilian mining company Vale SA reported on Monday an increase in iron ore output in the third quarter and predicted a further boost in fourth-quarter output at some units, as a number of mines ramp up production or come online.

In a securities filing, the company said it produced 88.7 million tonnes of iron ore in the quarter, up 31.2 per cent from the previous quarter and up 2.3 per cent from the same period a year before, boosted by increased output at its Itabira and Timbopeba complexes and its Fazendao mine, all in southern Brazil.

Production at Itabira was temporarily stopped in the second quarter due to to a coronavirus outbreak among workers, while Itabira and Fazendao had been dogged by regulatory issues.

While the company managed to boost iron ore output, it still has a long way to go to reach its annual goal of 310 million to 330 million tonnes. Through the third quarter, it had produced 216 million tonnes.

Vale said in the Monday statement that 6.0 million tonnes of iron ore output at its Serra Leste mine in northern Brazil would come online in the fourth quarter.