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 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-   .)

 

 

 



Table of Contents

 

Table of Contents:

 

Press Release

3

Signature Page

23

 

2



Table of Contents

 

 

VALE’S PRODUCTION IN 2Q15

 

 



Table of Contents

 

www.vale.com

 

rio@vale.com

 

Tel.: (55 21) 3814-4540

 

Investor Relations Department

 

Rogério T. Nogueira

André Figueiredo

Carla Albano Miller

Fernando Mascarenhas

Andrea Gutman

Bruno Siqueira

Claudia Rodrigues

Marcio Loures Penna

Mariano Szachtman

 

BM&F BOVESPA: VALE3, VALE5

NYSE: VALE, VALE.P

HKEx: 6210, 6230

EURONEXT PARIS: VALE3, VALE5

LATIBEX: XVALO, XVALP

 

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 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 Vale’s annual report on Form 20-F.

 



Table of Contents

    

 

Production highlights

 

Rio de Janeiro, July 23, 2015 — Vale S.A. (Vale) reached 85.3 Mt of iron ore production(1) in the second quarter of 2015 (2Q15), representing the second highest quarterly production in Vale’s history and the highest production in a second quarter.

 

Production of iron ore in the first half of 2015(1) (1H15) reached a new record of 159.8 Mt, 9.3 Mt higher than in the first half of 2014 (1H14).

 

In May 2015, we were granted the operational license for the extension of the N5S mine which will support improvements in our average product quality and reduce our production costs as a result of lower strip ratios and lower average haulage distances in Carajás. N5S is part of the N5 ore body, a world-class asset, with 888 million metric tons of proven and probable reserves and an average Fe content of 67.2%.

 

In 2Q15, we produced 9.8 Mt from the N4WS mine with 65.1% of iron content and low phosphorus levels. In the second semester of 2015 (2H15) we expect to be mining even higher Fe content ores with lower contaminant levels as we complete the pre-stripping of the mine and reduce the processing of the first ore layer (“canga”).

 

Vale also decided to reduce supply of high silica content ores by 25 to 30 Mt on an annualized basis, replacing these volumes by higher quality products. This reduction will come out of production from the Southern and Southeastern Systems, and from ore purchased from third parties.

 

Excluding Samarco’s attributable production of 3.6 Mt, Vale’s pellet production was 12.2 Mt in 2Q15, reaching a historical quarterly production record, due to the good performance of the Oman and the Vargem Grande pellet plants.

 

Nickel production reached 67,100 t in 2Q15, 3% lower than in 1Q15 and 8.7% higher than in 2Q14. Nickel production was 136,300 t in 1H15 and will increase in 2H15 as PTVI, VNC and Onça Puma will operate at full capacity as their planned maintenance shutdowns for the year were completed in the first half of the year and as Long Harbour continues to ramp up.

 


(1)  Excluding Samarco’s attributable production and iron ore acquired from third parties

 

3



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Copper output was 104,900 t in 2Q15, the best performance for a second quarter, being 2.1% lower than in 1Q15 and 29.5% higher than in 2Q14. In 1H15, copper production(2) was 212,000 t and will increase in 2H15 as we progress the ramp-up of the Salobo operation.

 

Gold production amounted to 100,000 oz in 2Q15, the best performance for a second quarter, being 2.6% lower than in 1Q15, due to production interruptions at the Sudbury smelter.

 

Production summary

 

 

 

 

 

 

 

 

 

 

 

 

 

% change

 

000’ metric tons

 

2Q15

 

1Q15

 

2Q14

 

1H15

 

1H14

 

2Q15/1Q15

 

2Q15/2Q14

 

1H15/1H14

 

Iron ore(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Own production

 

85,290

 

74,523

 

79,448

 

159,813

 

150,511

 

14.4

%

7.4

%

6.2

%

TPP(2)

 

4,021

 

2,894

 

3,395

 

6,915

 

6,392

 

38.9

%

18.4

%

8.2

%

Total

 

89,311

 

77,417

 

82,843

 

166,728

 

156,903

 

15.4

%

7.8

%

6.3

%

Pellets(1)

 

12,237

 

11,388

 

9,951

 

23,625

 

19,879

 

7.5

%

23.0

%

18.8

%

Manganese

 

554

 

592

 

505

 

1,146

 

975

 

-6.4

%

9.6

%

17.5

%

Coal

 

2,012

 

1,695

 

2,209

 

3,707

 

3,994

 

18.7

%

-8.9

%

-7.2

%

Nickel

 

67.1

 

69.2

 

61.7

 

136

 

129

 

-3.0

%

8.7

%

5.5

%

Copper(3)

 

104.9

 

107.2

 

81.0

 

212.0

 

169.5

 

-2.1

%

29.5

%

25.1

%

Potash

 

111

 

108

 

96

 

219

 

206

 

3.2

%

15.6

%

6.7

%

Phosphate rock

 

2,114

 

1,992

 

2,122

 

4,106

 

4,054

 

6.1

%

-0.4

%

1.3

%

 


(1) Excluding Samarco’s attributable production.

(2) TPP = Third parties purchases

(3) Including Lubambe’s attributable production.

 

(2)  Including Lubambe’s attributable production.

 

4



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Iron Ore

 

 

 

 

 

 

 

 

 

 

 

 

 

% change

 

000’ metric tons

 

2Q15

 

1Q15

 

2Q14

 

1H15

 

1H14

 

2Q15/1Q15

 

2Q15/2Q14

 

1H15/1H14

 

Northern System

 

31,609

 

27,521

 

29,281

 

59,130

 

52,646

 

14.9

%

7.9

%

12.3

%

Carajás

 

31,609

 

27,521

 

29,281

 

59,130

 

52,646

 

14.9

%

7.9

%

12.3

%

Southeastern System

 

29,054

 

25,869

 

26,475

 

54,922

 

52,297

 

12.3

%

9.7

%

5.0

%

Itabira

 

9,419

 

7,305

 

8,455

 

16,724

 

16,282

 

28.9

%

11.4

%

2.7

%

Minas Centrais

 

9,974

 

8,899

 

8,415

 

18,873

 

16,849

 

12.1

%

18.5

%

12.0

%

Mariana

 

9,661

 

9,665

 

9,605

 

19,326

 

19,166

 

0.0

%

0.6

%

0.8

%

Southern System

 

23,346

 

19,798

 

22,311

 

43,144

 

42,903

 

17.9

%

4.6

%

0.6

%

Paraopeba

 

7,567

 

5,659

 

7,685

 

13,225

 

14,601

 

33.7

%

-1.5

%

-9.4

%

Vargem Grande

 

7,330

 

5,888

 

6,644

 

13,218

 

12,118

 

24.5

%

10.3

%

9.1

%

Minas Itabirito

 

8,449

 

8,252

 

7,981

 

16,701

 

16,183

 

2.4

%

5.9

%

3.2

%

Midwestern System

 

1,281

 

1,335

 

1,381

 

2,616

 

2,666

 

-4.0

%

-7.2

%

-1.9

%

Corumbá

 

891

 

893

 

912

 

1,784

 

1,686

 

-0.3

%

-2.3

%

5.8

%

Urucum

 

390

 

442

 

469

 

832

 

980

 

-11.6

%

-16.8

%

-15.1

%

IRON ORE

 

85,290

 

74,523

 

79,448

 

159,813

 

150,511

 

14.4

%

7.4

%

6.2

%

TPP(1)

 

4,021

 

2,894

 

3,395

 

6,915

 

6,392

 

38.9

%

18.4

%

8.2

%

IRON ORE + TPP

 

89,311

 

77,417

 

82,843

 

166,728

 

156,903

 

15.4

%

7.8

%

6.3

%

Samarco(2)

 

3,666

 

3,578

 

3,148

 

7,244

 

5,562

 

2.4

%

16.4

%

30.2

%

 


(1) Third Parties Purchase

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

 

5



Table of Contents

 

Production summary

 

Iron ore production — excluding iron ore acquired from third parties and Samarco’s attributable production — of 85.3 Mt in 2Q15 was the second highest production in Vale’s history and the highest production for a second quarter. Output was 14.4% and 7.4% higher than in 1Q15 and 2Q14, respectively. Production grew in the Northern, Southeastern and Southern Systems mainly driven by better weather-related seasonality, the ramp-up of the N4WS mine and the greater capacity utilization of Plant 2.

 

Production in the first half of 2015 — excluding iron ore acquired from third parties and Samarco’s attributable production — reached the new record of 159.8 Mt, 9.3 Mt higher than the output in the first half of 2014.

 

Northern system

 

The Carajás production of 31.6 Mt was the highest for a second quarter, 4.1 Mt higher than in 1Q15 and 2.3 Mt higher than in 2Q14, mostly due to the ramp-up of the N4WS mine and the greater capacity utilization of Plant 2.

 

We produced 9.8 Mt from the N4WS mine in 2Q15 with 65.1% of iron content and lower phosphorus levels. In 2H15 we expect to be mining higher Fe content ores with lower contaminant levels as we complete the pre-stripping of the mine and reduce the processing of the first ore layer (“canga”).

 

Plant 2 produced 5.6 Mt in 2Q15, 1.7 Mt more than in 1Q15.

 

In May 2015, we were granted the operational license for the extension of the N5S mine which will support the improvement in our average product quality and reduce our production costs as a result of lower strip ratios and lower average haulage distances in Carajás. N5S is part of the N5 ore body, a world-class asset, with 888 million metric tons of proven and probable reserves and an average Fe content of 67.2%.

 

Southeastern system

 

The Southeastern System, which encompasses the Itabira, Minas Centrais and Mariana mining hubs, produced 29.1 Mt in 2Q15, 3.2 Mt and 2.6 Mt more than in 1Q15 and in 2Q14, respectively.

 

Production in the Itabira mining hub was 9.4 Mt, 2.1 Mt and 1.0 Mt higher than in 1Q15 and in 2Q14, respectively, as the Cauê mine resumed operations after the tie-ins of its new process stages from the Cauê Itabiritos project, due to start-up by the end of 2015.

 

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Production in the Minas Centrais mining hub was 10.0 Mt in 2Q15, 1.1 Mt and 1.6 Mt higher than in 1Q15 and in 2Q14, respectively, as a result of the ramp-up of the 5 th beneficiation line in Brucutu which produced 1.1 Mt in 2Q15.

 

Output from the Mariana mining hub reached 9.7 Mt, in line with production in 1Q15 and in 2Q14.

 

Southern system

 

The Southern System, composed of the Paraopeba, Vargem Grande and Minas Itabirito mining hubs, produced 23.3 Mt in 2Q15 and reached the best output since 2Q07, being 3.5 Mt and 1.0 Mt higher than in 1Q15 and in 2Q14, respectively. Output was higher due to the ramp-ups of the Vargem Grande Itabiritos processing plant and the Abóboras II dry processing plant.

 

Production at the Paraopeba mining hub was 1.9 Mt higher than in 1Q15 and in line with the same period of last year.

 

In July 2015, we interrupted the Feijão and Jangada plants which have higher beneficiation costs and yield a lower quality product. The decision is in line with Vale’s goal of improving product quality and margins.

 

Production at the Vargem Grande mining hub was 1.4 Mt and 0.7 Mt higher than in 1Q15 and in 2Q14, respectively, due to the abovementioned ramp-ups of the Vargem Grande Itabiritos and the Abóboras II projects. The output from the Vargem Grande Itabiritos plant was 1.1 Mt in 2Q15, out of a nominal capacity of 10 Mtpy. Abóboras II, a dry processing plant with nominal capacity of 3 Mtpy, produced 0.6 Mt in 2Q15.

 

Output from the Minas Itabirito mining hub reached 8.4 Mt, in line with production in 1Q15 and in 2Q14.

 

Midwestern system

 

The Midwestern System, comprising the Urucum and the Corumbá mining hubs, produced 1.3 Mt in 2Q15, 4.0% lower than in 1Q15 and 7.2% lower than in 2Q14, as a result of our strategy of shutting down unprofitable production streams.

 

Samarco

 

In 2Q15 Samarco’s pellet feed production (mostly dedicated to the production of Samarco´s pellets) was 3.7 Mt, 2.4% higher than in 1Q15 as a result of maintenance stoppages in the concentration plants in last quarter.

 

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Pellets

 

 

 

 

 

 

 

 

 

 

 

 

 

% change

 

000’ metric tons

 

2Q15

 

1Q15

 

2Q14

 

1H15

 

1H14

 

2Q15/1Q15

 

2Q15/2Q14

 

1H15/1H14

 

Southeastern System

 

7,199

 

7,121

 

5,820

 

14,320

 

11,629

 

1.1

%

23.7

%

23.1

%

Tubarão VIII

 

1,613

 

1,614

 

195

 

3,227

 

195

 

0.0

%

n.m.

 

n.m.

 

Nibrasco

 

2,228

 

2,241

 

2,317

 

4,469

 

4,719

 

-0.6

%

-3.9

%

-5.3

%

Kobrasco

 

1,088

 

1,088

 

1,131

 

2,176

 

2,301

 

0.0

%

-3.8

%

-5.4

%

Hispanobras

 

1,135

 

1,053

 

1,079

 

2,188

 

2,198

 

7.8

%

5.2

%

-0.4

%

Itabrasco

 

1,135

 

1,125

 

1,099

 

2,260

 

2,217

 

0.9

%

3.3

%

2.0

%

Southern System

 

2,619

 

2,372

 

2,076

 

4,991

 

4,353

 

10.4

%

26.2

%

14.6

%

Fabrica

 

951

 

855

 

748

 

1,806

 

1,550

 

11.3

%

27.2

%

16.6

%

Vargem Grande

 

1,667

 

1,517

 

1,328

 

3,184

 

2,803

 

9.9

%

25.6

%

13.6

%

Oman

 

2,419

 

1,895

 

2,055

 

4,314

 

3,897

 

27.7

%

17.7

%

10.7

%

TOTAL PELLETS

 

12,237

 

11,388

 

9,951

 

23,625

 

19,879

 

7.5

%

23.0

%

18.8

%

Samarco (1)

 

3,645

 

3,497

 

2,988

 

7,143

 

5,207

 

4.2

%

22.0

%

37.2

%

 


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

 

Production overview

 

Excluding Samarco’s attributable production of 3.6 Mt, Vale’s pellet production in 2Q15 was 12.2 Mt — a historical production record, due to the good performance of the Oman and the Vargem Grande pellet plants.

 

Southeastern system

 

Production at the Tubarão pellet plants — Nibrasco, Kobrasco, Hispanobras, Itabrasco and Tubarão VIII — reached 7.2 Mt in 2Q15, 1.1% higher than in 1Q15 and 23.7% higher than in 2Q14, mostly due to the good operational performance of Hispanobras.

 

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Southern system

 

The Fábrica pellet plant produced 1.0 Mt of pellets in 2Q15, 11.3% higher than in 1Q15 given the better availability of pellet feed and 27.2% higher than in 2Q14 as a result of maintenance stoppage in the plant in the same period of last year.

 

The Vargem Grande pellet output reached the historical record of 1.7 Mt, 9.9% and 25.6% higher than in 1Q15 and in 2Q14 respectively, due to the higher productivity of the plant.

 

Oman operations

 

The Oman operation produced 2.4Mt of direct reduction pellets in 2Q15, 27.7% higher than in 1Q15, reaching an all-time record after resuming production following a maintenance stoppage in February 2015.

 

Samarco

 

In 2Q15 Samarco´s attributable production was 3.6 Mt, 4.2% and 22.0% higher than in 1Q15 and 2Q14, respectively, as a result of the higher availability of pellet feed in 2Q15.

 

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Table of Contents

 

Manganese ore and ferroalloys

 

 

 

 

 

 

 

 

 

 

 

 

 

% change

 

000’ metric tons

 

2Q15

 

1Q15

 

2Q14

 

1H15

 

1H14

 

2Q15/1Q15

 

2Q15/2Q14

 

1H15/1H14

 

MANGANESE ORE

 

554

 

592

 

505

 

1,146

 

975

 

-6.4

%

9.6

%

17.5

%

Azul

 

346

 

407

 

370

 

753

 

701

 

-15.1

%

-6.4

%

7.4

%

Urucum

 

208

 

184

 

136

 

392

 

266

 

12.8

%

53.3

%

47.6

%

Other mines

 

0

 

0

 

0

 

0

 

8

 

n.m.

 

n.m.

 

n.m.

 

FERROALLOYS

 

31

 

27

 

44

 

58

 

89

 

14.1

%

-28.6

%

-34.8

%

Brazil

 

31

 

27

 

44

 

58

 

89

 

14.1

%

-28.6

%

-34.8

%

 

Production overview

 

In 2Q15, we shut down the ferroalloys plants in Minas Gerais (Barbacena and Ouro Preto plants) as existing energy contracts expired and energy costs increased, impairing the economic viability of the ferroalloy operations. Production from our manganese ore operations in Morro da Mina was affected.

 

Manganese ore production

 

Output from the Carajás Azul manganese mine decreased by 15.1% when compared to 1Q15, reaching 346,000 t in 2Q15, as a result of a scheduled maintenance stoppage in 2Q15.

 

In 2Q15, output from the Urucum mine reached the record of 208,000 t, 12.8% and 53.3% higher than in 1Q15 and 4Q14, respectively, mostly driven by better productivity and greater physical equipment availability.

 

Ferroalloys production

 

As previously mentioned, ferroalloys production was affected by the stoppage of the ferroalloy plants in Barbacena and Ouro Preto in Minas Gerais state.

 

Ferroalloys quarterly production was comprised of 12,500 t of ferrosilicon manganese alloys (FeSiMn), 12,700 t of high-carbon manganese alloys (FeMnHc) and 6,000 t of medium-carbon manganese alloys (FeMnMC).

 

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Nickel

 

Finished production by source

 

 

 

 

 

 

 

 

 

 

 

 

 

% change

 

000’ metric tons

 

2Q15

 

1Q15

 

2Q14

 

1H15

 

1H14

 

2Q15/1Q15

 

2Q15/2Q14

 

1H15/1H14

 

Canada

 

43.0

 

38.6

 

30.8

 

82

 

72

 

11.3

%

39.5

%

12.7

%

Sudbury

 

11.7

 

11.4

 

9.1

 

23

 

27

 

2.4

%

28.1

%

-13.7

%

Thompson

 

7.0

 

5.8

 

6.9

 

13

 

15

 

20.6

%

0.7

%

-12.2

%

Voisey’s Bay

 

15.2

 

13.5

 

12.1

 

29

 

27

 

12.7

%

25.5

%

7.9

%

Ore from third parties(1)

 

9.1

 

7.9

 

2.7

 

17

 

5

 

14.9

%

243.7

%

278.0

%

Indonesia

 

13.4

 

18.0

 

21.2

 

31

 

38

 

-5.5

%

-36.6

%

-16.4

%

New Caledonia(2)

 

4.8

 

6.5

 

4.6

 

11

 

9

 

-6.4

%

5.0

%

30.5

%

Brazil

 

5.9

 

6.1

 

5.2

 

12

 

11

 

-2.6

%

14.1

%

13.4

%

TOTAL NICKEL

 

67.1

 

69.2

 

61.7

 

136

 

129

 

-3.0

%

8.7

%

5.5

%

 


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

(2) On site production of 7,300 t in 1Q15.

 

Production overview

 

Production of nickel reached 67,100 t in 2Q15, 3% lower than in 1Q15 as a result of maintenance shutdowns in Indonesia and New Caledonia but 8.7% higher than in 2Q14.

 

Canadian operations

 

In 2Q15, production from the Sudbury mines was 11,700 t, in line with the previous quarter and 28.1% higher than in 2Q14 despite an electrical fire in a switchroom at matte processing which resulted in the Sudbury matte processing and nickel refinery operations being shut down for approximately 24 days. The operations before matte processing continued to operate during this period. We estimate that the fire impacted nickel and copper production by 5,000 t each and will be recovered in the second half of the year. In 2Q14, the Sudbury smelter shut down for much of the quarter as a result of a fatality, followed by maintenance. The Sudbury mill, smelter and refinery facilities will shut down for planned maintenance in August 2015. The mines will operate throughout this time building inventories for later processing.

 

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Production from the Thompson mines was 7,000 t in 2Q15, 20.6% higher than in the 1Q15 and in line with 2Q14. The Thompson refinery experienced supply and quality problems with reagent suppliers which resulted in stoppages in 1Q15. The refinery returned to full production and will run at high operating rates to consume the excess inventory built up during the above referred stoppages. The Thompson mill, smelter and refinery will shut down in August for planned maintenance. The Thompson mines will operate throughout this time building inventories for later processing.

 

Voisey’s Bay mine production amounted to 15,200 t in 2Q15, 12.7% higher than in 1Q15 and 25.5% higher than in 2Q14. The Voisey’s Bay mill underwent regular planned maintenance in June and returned to full production at the beginning of July.

 

The ramp-up of the Long Harbour Processing Plant is underway with the plant producing over 1,500 t of finished nickel in 2Q15. The plant is currently being fed by a blend of PTVI matte and Voisey’s Bay concentrate and as of the end of 2015 will process only Voisey’s Bay concentrate.

 

Indonesian operation (PTVI)

 

In 2Q15, production of nickel in matte from our Indonesian operations at Sorowako totaled 19,300 t, 10.2% higher than 1Q15 and in line with 2Q14. In the first half of 2015, PTVI underwent major maintenance work on furnaces #1, #2 and #4, all of which are now in full operation.

 

The production of finished nickel from matte sourced from PTVI reached 13,400 t, 5.5% and 36.6% lower than in 1Q15 and 2Q14, respectively. The unscheduled maintenance on furnace #4 in 1Q15 and the planned maintenance on furnaces #1 and #2 in 2Q15 temporarily disrupted flows of feed to the downstream refining facilities early in the quarter. These flows have since returned to normal and we expect a strong performance for the second half of the year.

 

New Caledonia operations (VNC)

 

VNC production of NiO and NHC was 6,100 t in 2Q15, as the operation shut down in June to carry out planned maintenance of the processing plant including the acid plant and the implementation of the permanent repairs to the ocean outfall pipeline. During the shutdown we brought on-line a 4th filter and a second redesigned fluid bed roaster which will enable a strong second half performance as we expect VNC to achieve 75% of nameplate capacity.

 

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Brazilian operation (Onça Puma)

 

The output from the Onça Puma operation was 5,900 t, in line with the previous quarter, and 14.1% higher than 2Q14. Onça Puma carried out a brief shutdown in 2Q15 for some planned improvements to the plant.

 

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Table of Contents

 

 

Copper

 

Finished production by source

 

 

 

 

 

 

 

 

 

 

 

 

 

% change

 

000’ metric tons

 

2Q15

 

1Q15

 

2Q14

 

1H15

 

1H14

 

2Q15/1Q15

 

2Q15/2Q14

 

1H15/1H14

 

BRAZIL

 

67.0

 

62.4

 

46.2

 

129.4

 

93.5

 

7.4

%

45.1

%

38.4

%

Sossego

 

29.0

 

27.1

 

26.5

 

56.2

 

52.8

 

7.0

%

9.6

%

6.4

%

Salobo

 

38.0

 

35.3

 

19.7

 

73.2

 

40.8

 

7.7

%

92.9

%

79.7

%

CANADA

 

35.1

 

42.2

 

32.0

 

77.3

 

70.6

 

-16.7

%

9.7

%

9.5

%

Sudbury

 

22.4

 

25.3

 

19.0

 

47.7

 

43.5

 

-11.5

%

18.0

%

9.7

%

Thompson

 

0.7

 

0.1

 

0.4

 

0.8

 

0.7

 

529.2

%

69.4

%

8.1

%

Voisey’s Bay

 

5.9

 

7.5

 

7.2

 

13.4

 

14.1

 

-21.0

%

-18.0

%

-5.1

%

Ore from third parties

 

6.1

 

9.3

 

5.4

 

15.4

 

12.2

 

-34.1

%

13.1

%

25.5

%

TOTAL EX-LUBAMBE

 

102.2

 

104.6

 

78.2

 

206.7

 

164.1

 

-2.3

%

30.6

%

24.9

%

Lubambe(1)

 

2.7

 

2.6

 

2.8

 

5.3

 

5.3

 

6.4

%

-2.2

%

-0.3

%

TOTAL COPPER

 

104.9

 

107.2

 

81.0

 

212.0

 

169.4

 

-2.1

%

29.5

%

25.1

%

 


(1) Attributable production.

 

Production overview

 

In 2Q15, copper output reached 104,900 t, the best production for a second quarter, being 2.1% lower than in 1Q15 and 29.5% higher than in 2Q14.

 

Brazilian operations

 

Production of copper in 2Q15 at the Sossego mine totaled 29,000 t in the form of copper in concentrates, 7.0% and 9.6% higher than in 1Q15 and 2Q14, respectively.

 

Production of copper in 2Q15 at Salobo totaled 38,000 t, a new record for that operation as a result of the ongoing ramp-up of Salobo II.

 

Canadian operations

 

Copper produced from the Sudbury mine reached 22,400 t, 11.5% lower than in 1Q15 and 18.0% higher than in 2Q14, given the above-mentioned interruption of the Sudbury operations due to the fire in the switchroom. The operation has since returned to normal production

 

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levels. In the second half of 2015, we expect to recover the 5,000 t of copper lost as a result of the fire.

 

Production from the Voisey’s Bay mine reached 5,900 t of copper in concentrate, 21.0% and 18% lower than in 1Q15 and in 2Q14, respectively, as a result of the planned maintenance carried out in the mill in June.

 

African operation (Lubambe)

 

Lubambe, our Zambian JV, is ramping up and delivering 6,800 t of copper in concentrates on a 100% basis (attributable production of 2,700 t). Lubambe has a nominal capacity of 45,000 t per year.

 

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Table of Contents

 

 

Nickel and copper by-products

 

Finished production by source

 

 

 

 

 

 

 

 

 

 

 

 

 

% change

 

 

 

2Q15

 

1Q15

 

2Q14

 

1H15

 

1H14

 

2Q15/1Q15

 

2Q15/2Q14

 

1H15/1H14

 

COBALT (metric tons)

 

1,122

 

970

 

736

 

2,091.5

 

1,592.4

 

15.7

%

52.5

%

31.3

%

Sudbury

 

97

 

212

 

113

 

309

 

286

 

-54.0

%

-14.1

%

7.9

%

Thompson

 

146

 

41

 

84

 

188

 

187

 

253.5

%

74.5

%

0.2

%

Voisey’s Bay

 

367

 

128

 

354

 

495

 

636

 

186.8

%

3.7

%

-22.2

%

VNC

 

441

 

559

 

174

 

1,000

 

461

 

-21.2

%

153.8

%

117.0

%

Others

 

70

 

29

 

11

 

100

 

22

 

139.1

%

532.9

%

355.8

%

PLATINUM (000’ oz troy)

 

46

 

42

 

27

 

88

 

76

 

11.6

%

71.6

%

15.3

%

Sudbury

 

46

 

42

 

27

 

88

 

76

 

11.6

%

71.6

%

15.3

%

PALLADIUM (000’ oz troy)

 

109

 

97

 

66

 

206

 

176

 

11.6

%

63.6

%

17.4

%

Sudbury

 

109

 

97

 

66

 

206

 

176

 

11.6

%

63.6

%

17.4

%

GOLD (000’ oz troy)

 

100

 

103

 

70

 

203

 

144

 

-2.6

%

42.9

%

41.1

%

Sudbury

 

23

 

27

 

18

 

50

 

38

 

-16.7

%

25.0

%

30.2

%

Sossego

 

22

 

21

 

18

 

43

 

36

 

2.9

%

21.5

%

19.7

%

Salobo

 

56

 

54

 

34

 

110

 

70

 

2.3

%

63.8

%

58.1

%

SILVER (000’ oz troy)

 

255

 

482

 

269

 

736

 

702

 

-47.1

%

-5.3

%

4.9

%

Sudbury

 

255

 

482

 

269

 

736

 

702

 

-47.1

%

-5.3

%

4.9

%

 

Gold

 

Gold production amounted to 100,000 oz in 2Q15, the best performance ever for a second quarter, but 2.6% lower than in 1Q15, as a result of the above-mentioned interruption of the Sudbury operations.

 

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Table of Contents

 

Cobalt

 

Cobalt production reached 1,122 t in 2Q15, the best performance for a second quarter and 15.7% higher than in 1Q15, mainly reflecting the performance improvements experienced in the Thompson refinery in 1Q15.

 

Platinum and palladium

 

Platinum output was 46,000 oz and palladium output was 109,000 oz, 11.6% higher than in 1Q15.

 

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Table of Contents

 

 

Coal

 

 

 

 

 

 

 

 

 

 

 

 

 

% change

 

000’ metric tons

 

2Q15

 

1Q15

 

2Q14

 

1H15

 

1H14

 

2Q15/1Q15

 

2Q15/2Q14

 

1H15/1H14

 

METALLURGICAL COAL

 

1,628

 

1,268

 

1,671

 

2,896

 

2,894

 

28.4

%

-2.6

%

0.1

%

Moatize

 

886

 

727

 

714

 

1,613

 

1,309

 

21.9

%

24.2

%

23.3

%

Carborough Downs

 

742

 

541

 

591

 

1,283

 

664

 

37.3

%

25.5

%

93.0

%

Integra Coal

 

0

 

0

 

235

 

0

 

614

 

n.m.

 

n.m.

 

n.m.

 

Isaac Plains

 

0

 

0

 

131

 

0

 

307

 

n.m.

 

n.m.

 

n.m.

 

THERMAL COAL

 

384

 

427

 

539

 

811

 

1,100

 

-10.1

%

-28.7

%

-26.3

%

Moatize

 

384

 

427

 

457

 

811

 

871

 

-10.1

%

-15.9

%

-6.8

%

Integra Coal

 

0

 

0

 

16

 

0

 

64

 

n.m.

 

n.m.

 

n.m.

 

Isaac Plains

 

0

 

0

 

66

 

0

 

166

 

n.m.

 

n.m.

 

n.m.

 

TOTAL COAL

 

2,012

 

1,695

 

2,209

 

3,707

 

3,994

 

18.7

%

-8.9

%

-7.2

%

 

Production overview

 

Total coal output in 2Q15 was 2.0 Mt, 18.7% higher than in 1Q15 and 8.9% lower than in 2Q14, reflecting the stoppage of the Integra Coal mine and the Isaac Plains mine.

 

Australian operations

 

In 2Q15, the Carborough Downs mine achieved a production level of 742,000 t, the best production for a second quarter, and 37.3% higher than in 1Q15. The good operational performance was a result of the longwall move completed in the beginning of April.

 

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.

 

In 3Q14, the Isaac Plains mine was also placed in care and maintenance. The open cut production continued throughout 4Q14, until coal production ceased.

 

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Table of Contents

 

Moatize operations

 

In 2Q15, Moatize production was 1.270 Mt, 116,000 t higher than in 1Q15. In 2Q15, the plant improved its yield but reduced the availability of the material handling system which impacted the coal processing plant availability. These issues were addressed in a plant shutdown in June.

 

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 mine’s nominal capacity of 11 Mtpy.

 

The above-mentioned logistics bottleneck will be gradually eliminated as we complete and ramp up the Nacala logistics corridor.

 

We have concluded the greenfield sections of the Nacala Corridor and the port expansion at Nacala-à-Velha. Revamp of the brownfield sections of the railway is close to completion and the start-up is scheduled for 3Q15.

 

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Table of Contents

 

 

Potash and phosphates

 

Potash

 

 

 

 

 

 

 

 

 

 

 

 

 

% change

 

000’ metric tons

 

2Q15

 

1Q15

 

2Q14

 

1H15

 

1H14

 

2Q15/1Q15

 

2Q15/2Q14

 

1H15/1H14

 

POTASH

 

111

 

108

 

96

 

219

 

206

 

3.2

%

15.6

%

6.7

%

Taquari-Vassouras

 

111

 

108

 

96

 

219

 

206

 

3.2

%

15.6

%

6.7

%

 

Phosphates

 

 

 

 

 

 

 

 

 

 

 

 

 

% change

 

000’ metric tons

 

2Q15

 

1Q15

 

2Q14

 

1H15

 

1H14

 

2Q15/1Q15

 

2Q15/2Q14

 

1H15/1H14

 

PHOSPHATE ROCK

 

2,114

 

1,992

 

2,122

 

4,106

 

4,054

 

6.1

%

-0.4

%

1.3

%

Brazil

 

1,102

 

1,101

 

1,204

 

2,203

 

2,230

 

0.1

%

-8.5

%

-1.2

%

Bayóvar

 

1,012

 

892

 

918

 

1,904

 

1,824

 

13.5

%

10.2

%

4.4

%

MAP(1)

 

287

 

291

 

263

 

578

 

539

 

-1.4

%

9.1

%

7.2

%

TSP(2)

 

240

 

231

 

223

 

471

 

430

 

3.7

%

7.3

%

9.4

%

SSP(3)

 

470

 

464

 

506

 

934

 

863

 

1.3

%

-7.0

%

8.3

%

DCP(4)

 

84

 

137

 

128

 

222

 

246

 

-38.6

%

-34.2

%

-10.0

%

 


(1) Monoammonium phosphate

(2) Triple superphosphate

(3) Single superphosphate

(4) Dicalcium phosphate

 

Potash

 

In 2Q15, potash production totaled 111,000 t, in line with 1Q15 and 15.6% higher than in 2Q14 as we improved the physical availability in our processing plants.

 

Phosphate Rock

 

Phosphate rock output was 2.1 Mt in 2Q15, 6.1% higher than in 1Q15, as Bayóvar improved its operational performance after the maintenance stoppages carried out in the previous quarter.

 

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Table of Contents

 

MAP

 

The production of MAP (monoammonium phosphate) totaled 287,000 t in 2Q15, in line with 1Q15 and 9.1% higher than in 2Q14, as a result of operational improvements after the scarcity of phosphoric acid in 2Q14.

 

TSP

 

The output of TSP (triple superphosphate) was 240,000 t in 2Q15, an all-time record for a second quarter, being 3.7% and 7.3% higher than in 1Q15 and in 2Q14 respectively.

 

SSP

 

The production of SSP (single superphosphate) was 470,000 t in 2Q15, slightly higher than in 1Q15 but 7.1% lower than in 2Q14, as a result of the production stoppage of Guará and lower availability in Araxá and Catalão, after the maintenance stoppage.

 

DCP

 

DCP (dicalcium phosphate) production amounted to 84,000 t in 2Q15, 38.7% and 34.4% lower than in 1Q15 and in 2Q14, respectively, as a result of the yearly maintenance stoppage carried out in Cajati last quarter.

 

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Table of Contents

 

Nitrogen

 

 

 

 

 

 

 

 

 

 

 

 

 

% change

 

000’ metric tons

 

2Q15

 

1Q15

 

2Q14

 

1H15

 

1H14

 

2Q15/1Q15

 

2Q15/2Q14

 

1H15/1H14

 

AMMONIA

 

46

 

43

 

47

 

90

 

95

 

6.5

%

-0.5

%

-5.6

%

NITRIC ACID

 

118

 

114

 

115

 

231

 

228

 

3.5

%

2.1

%

1.5

%

AMMONIUM NITRATE

 

122

 

119

 

117

 

242

 

230

 

2.5

%

4.9

%

5.0

%

 

Ammonia production

 

In 2Q15, ammonia production was 46,000 t, 7.0% higher than in 1Q15 and in line with production in 2Q14.

 

Nitric acid and ammonium nitrate production

 

Production of nitric acid and ammonium nitrate was, respectively, 3.5% and 2.5% higher than in 1Q15.

 

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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/ Rogerio T. Nogueira

Date: July 23, 2015

 

Rogerio T. Nogueira

 

 

Director of Investor Relations

 

23