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

 

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-   .)

 

 

 



Table of Contents

 

Table of Contents:

 

Press Release

3

Signature Page

4

 

2



Table of Contents

 

 

2014 and 4Q14 ProductionReport

 

GRAPHIC

 

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 Samarco’s attributable production.

 

3



Table of Contents

 

·                  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
% change

 

4Q14/4Q13
% change

 

2014/2013
% change

 

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 Samarco’s attributable production.

(2) Including Lubambe’s attributable production.

 

4



Table of Contents

 

 

Iron ore

 

000’ metric tons

 

4Q14

 

3Q14

 

4Q13

 

2014

 

2013

 

4Q14/3Q14
% Change

 

4Q14/4Q13
% Change

 

2014/2013
% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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)  Vale’s attributable production capacity of 50%.

 

Production overview

 

Vale’s own iron ore production, excluding iron ore acquired from third parties and Samarco’s 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, Vale’s 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.

 

5



Table of Contents

 

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.

 

6



Table of Contents

 

GRAPHIC

 

Pellets

 

000’ metric tons

 

4Q14

 

3Q14

 

4Q13

 

2014

 

2013

 

4Q14/3Q14
% Change

 

4Q14/4Q13
% Change

 

2014/2013
% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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) Vale’s attributable production capacity of 50%.

 

Production overview

 

Excluding Samarco’s attributable production of 12,1 Mt, Vale’s 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 .

 

7



Table of Contents

 

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.

 

8



Table of Contents

 

Manganese ore and ferroalloys

 

000’ metric tons

 

4Q14

 

3Q14

 

4Q13

 

2014

 

2013

 

4Q14/3Q14
% Change

 

4Q14/4Q13
% Change

 

2014/2013
% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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).

 

9



Table of Contents

 

GRAPHIC

 

Nickel

 

Finished production by source

 

000’ metric tons

 

4Q14

 

3Q14

 

4Q13

 

2014

 

2013

 

4Q14/3Q14
% Change

 

4Q14/4Q13
% Change

 

2014/2013
% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

%

Voisey’s 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.

 

Voisey’s 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.

 

10



Table of Contents

 

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 HPAL’s 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.

 

11



Table of Contents

 

GRAPHIC

 

Copper

 

Finished production by source

 

000’ metric tons

 

4Q14

 

3Q14

 

4Q13

 

2014

 

2013

 

4Q14/3Q14
% Change

 

4Q14/4Q13
% Change

 

2014/2013
% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

%

Voisey’s 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

 

12



Table of Contents

 

which accumulated during the 2Q14 schedule maintenance shutdown.

 

Production from Voisey’s 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 Voisey’s 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.

 

13



Table of Contents

 

GRAPHIC

 

Nickel and copper by-products

 

Finished production by source

 

 

 

4Q14

 

3Q14

 

4Q13

 

2014

 

2013

 

4Q14/3Q14
% Change

 

4Q14/4Q13
% Change

 

2014/2013
% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

%

Voisey’s 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 Voisey’s 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.

 

14



Table of Contents

 

GRAPHIC

 

Coal

 

000’ metric tons

 

4Q14

 

3Q14

 

4Q13

 

2014

 

2013

 

4Q14/3Q14
% Change

 

4Q14/4Q13
% Change

 

2014/2013
% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 .

 

15



Table of Contents

 

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 mine’s 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.

 

16



Table of Contents

 

GRAPHIC

 

Potash

 

000’ metric tons

 

4Q14

 

3Q14

 

4Q13

 

2014

 

2013

 

4Q14/3Q14
% Change

 

4Q14/4Q13
% Change

 

2014/2013
% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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
% Change

 

4Q14/4Q13
% Change

 

2014/2013
% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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.

 

17



Table of Contents

 

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.

 

18



Table of Contents

 

Nitrogen 

 

000’ metric tons

 

4Q14

 

3Q14

 

4Q13

 

2014

 

2013

 

4Q14/3Q14
% Change 

 

4Q14/4Q13
% Change 

 

2014/2013
% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 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.

 

19



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: February 19, 2015

 

Rogerio T. Nogueira

 

 

Director of Investor Relations

 

20


Vale (NYSE:VALE)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more Vale Charts.
Vale (NYSE:VALE)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more Vale Charts.