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

 

October 2022

 

Vale S.A.

 

Praia de Botafogo nº 186, 18º andar, Botafogo
22250-145 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 ¨

 

(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 ¨ 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 ¨ 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 ¨ No x

 

(If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b). 82-     .)

 

 

 

 

 

 

 

 

Vale’s production and sales in 3Q22

Rio de Janeiro, October 17th, 2022

• Iron ore production increased 21% q/q to 89.7 Mt, reflecting the dry season in the Northern System and higher third-party ore purchases and production in the Southern System.
• Sales of iron ore fines and pellets increased 6.0% q/q to 77.6 Mt. The usual production-to-sales gap in Q3 resulted from transiting inventories across the supply chain, which Vale expects to revert in the next quarter, depending on market conditions.
• Nickel production increased 51% q/q to 51.8 kt, as refineries came back from a maintenance period in 2Q22 and the conclusion of the furnace 4 rebuild at PTVI. Nickel sales increased 13% q/q, but lagged production due to sales commitments in 4Q22 during scheduled maintenance, low availability of containerships impacting Onça Puma and shipping congestion in the UK in 3Q22.
• Copper production increased 33% q/q to 74.3 kt, following extended maintenance at Sossego mill in the first half of the year, better plant performance at Salobo in the quarter and the recovery of copper from copper precipitate holding facilities in North Atlantic operations. Copper sales were up 37% q/q, in line with higher production.

 

 

 

Production summary

            % change  
000’ metric tons 3Q22 2Q22 3Q21 9M22 9M21 3Q22/2Q22 3Q22/3Q21 9M22/9M21  2022 Guidance  
Iron ore1 89,701 74,108 88,689 226,937 231,222 21.0% 1.1% -1.9% 310-320 Mt
Pellets 8,256 8,672 8,341 23,852 22,637 -4.8% -1.0% 5.4% 34-38 Mt
Nickel2 51.8 34.2 30.2 131.8 120.2 51.5% 71.5% 9.7% 175-190 kt
Copper 74.3 55.9 69.2 186.8 219.3 32.9% 7.4% -14.8% 270-285 kt

 

1 Including third-party purchases, run-of-mine and feed for pelletizing plants. Excluding Midwestern System volumes.

2 Nickel production in 2Q22 was restated from 34.8 kt.

 

 

 

Sales summary

            % change
000’ metric tons 3Q22 2Q22 3Q21 9M22 9M21 3Q22/2Q22 3Q22/3Q21 9M22/9M21
Iron ore1 69,049 64,318 66,725 185,713 190,631 7.4% 3.5% -2.6%
Pellets 8,521 8,843 8,037 24,375 21,955 -3.6% 6.0% 11.0%
Nickel 44.3 39.3 41.8 122.6 137.2 12.7% 6.0% -10.6%
Copper 70.5 51.5 65.4 172.2 210.8 36.9% 7.8% -18.3%

 

1 Including third-party purchases and run-of-mine. Excluding Midwestern System volumes.

1  

 

Businesses’ highlights in 3Q22

 

Iron Ore and Pellets operations

· Northern Systemproduction increased q/q benefiting from the dry weather in third quarter1. Performance y/y was mainly impacted by lower ROM availability at Serra Norte, due to slower licensing processes. At S11D, mine movement was flat y/y, but the need to process more waste yielded a lower strip ratio and iron ore production.  
· Southeastern System production was flat q/q.
· Southern System production increased q/q mainly due to (i) higher third-party purchases; (ii) additional production and sales of run-of-mine from Paraopeba Complex; and (iii) solid performance at Vargem Grande, boosted by several productivity initiatives implemented in the previous quarters.
· Pellets production was slightly lower q/q. As a result of portfolio optimization and market conditions, Vale decided to prioritize production of direct reduction pellets in Oman plants.
· All-in premium totalled US$ 6.6/t2 (vs. US$ 7.3/t in 2Q22) due to lower market premiums for low-alumina products and the absence of seasonal JV’s dividends. The negative effect was partially offset by record contractual pellet premiums and an improved product portfolio quality mix with a larger share of blended products.

1 Rainfall level: 31 mm at Serra Norte in 3Q22 (vs. 227 mm in 2Q22) and 36 mm at S11D in 3Q22 (vs. 237 mm in 2Q22).

2 Iron ore premium of US$ 0.6/t and weighted average contribution of pellets of US$ 6.0/t.


2  

 

Nickel operations

· Finished nickel production from Sudbury sourced ore rose 5.1 kt q/q, reaching 12.2 kt, the highest production level since 1Q21. This was mainly due to a strong performance at Copper Cliff Refinery after scheduled maintenance during 2Q22.  
· Finished nickel production from Thompson sourced ore increased 35% q/q, as 2Q22 was impacted by scheduled maintenance at Long Harbour Refinery.
· Finished nickel production from Voisey’s Bay sourced ore was 1.8 kt lower q/q as we proceed with the ongoing transitional period between the depletion of Ovoid mine and ramp-up to full production of the Voisey’s Bay underground project.
· Finished nickel production from third parties increased 3.1 kt q/q as refineries returned to full operation after maintenance in 2Q22. Consumption of feed from third parties is expected to remain at higher levels than in recent years, aiming to maximize the utilization and performance of our downstream operations.
  ·        Finished nickel production from Indonesia sourced material was 10.1 kt higher q/q, in line with the 39% increase to 17.5 kt in Nickel in matte production following completion of the furnace 4 rebuild. In addition, both downstream refineries, Clydach and Matsusaka, performed well during the quarter after maintenance during 2Q22.
· Onça Puma continued to perform well, with nickel production increasing 8% q/q. The annual maintenance of the kiln is scheduled in 4Q22.
· Nickel sales were 13% higher q/q but lower than 3Q22 production. This reflected (i) inventory buildup to meet sales commitments during planned maintenance at Long Harbour and Matsusaka in 4Q22; (ii) logistics issues at Onça Puma resulting from low availability of containerships at Vila do Conde during the quarter; and (iii) shipping congestion at UK ports impacting Clydach. Nickel sales are expected to revert in 4Q22.

3  

 

 

Copper operations

· Sossego copper production was 13.3 kt higher q/q following the conclusion of extended SAG mill maintenance in June. The y/y performance was negatively impacted by corrective maintenance at the plant in September, which continued into 4Q22.  
· Salobo copper production increased 5.1 kt q/q, despite additional planned and corrective maintenance performed in 3Q22. Consistent with our focus on plant reliability, planned maintenance activities will continue in 4Q22.
· Copper production in Canada was flat q/q, as planned maintenance in Sudbury mines and mill in the quarter was offset by (i) the recovery of metal from copper precipitate holding facilities in Thompson, as part of our approach to sustainable mining; (ii) stable performance at Voisey’s Bay mill following planned maintenance in 2Q22; and (iii) higher copper produced from third-party feed, consistent with increased third-party feed consumption.
· Copper sales3 were higher q/q, in line with higher production.

3 Sales volumes are lower compared to production volumes due to payable copper vs. contained copper: part of the copper contained in the concentrates is lost in the smelting and refining process, hence payable quantities of copper are approximately 3.5% lower than contained volumes.

 

4  

 

 

ANNEX - Production and sales summary

 

 

Iron ore

            % change
000’ metric tons 3Q22 2Q22 3Q21 9M22 9M21 3Q22/2Q22 3Q22/3Q21 9M22/9M21
Northern System 49,652 39,073 53,020 126,457 138,814 27.1% -6.4% -8.9%
Serra Norte and Serra Leste 30,678 22,548 31,961 75,812 84,177 36.1% -4.0% -9.9%
S11D 18,974 16,525 21,059 50,646 54,637 14.8% -9.9% -7.3%
Southeastern System 19,725 19,557 19,532 54,237 51,121 0.9% 1.0% 6.1%
Itabira (Cauê, Conceição and others) 7,017 7,061 7,795 20,276 20,709 -0.6% -10.0% -2.1%
Minas Centrais (Brucutu and others) 5,845 5,950 5,696 15,364 14,642 -1.8% 2.6% 4.9%
Mariana (Alegria, Timbopeba and others) 6,864 6,547 6,041 18,599 15,770 4.8% 13.6% 17.9%
Southern System 20,324 15,477 16,138 46,244 41,287 31.3% 25.9% 12.0%
Paraopeba (Mutuca, Fábrica and others) 10,725 6,968 6,867 21,703 18,083 53.9% 56.2% 20.0%
Vargem Grande (Vargem Grande, Pico and others) 9,599 8,510 9,271 24,541 23,204 12.8% 3.5% 5.8%
IRON ORE PRODUCTION1 89,701 74,108 88,689 226,937 231,222 21.0% 1.1% -1.9%
IRON ORE SALES2 69,0493 64,318 66,725 185,713 190,631 7.4% 3.5% -2.6%
IRON ORE AND PELLETS SALES2 77,569 73,161 74,762 210,088 212,586 6.0% 3.8% -1.2%

1 Including third party purchases, run-of-mine and feed for pelletizing plants. Excluding Midwestern System volumes. Vale’s product portfolio Fe content reached 62.1%, alumina 1.4% and silica 6.4% in 3Q22.

2 Including third-party purchases and run-of-mine. Excluding Midwestern System volumes.

3 Run-of-mine sales totalled 3.7 Mt in 3Q22.

 

Pellets

            % change
000’ metric tons 3Q22 2Q22 3Q21 9M22 9M21 3Q22/2Q22 3Q22/3Q21 9M22/9M21
Northern System 899 836 1,020 2,473 2,729 7.5% -11.9% -9.4%
  São Luis 899 836 1,020 2,473 2,729 7.5% -11.9% -9.4%
Southeastern System 3,284 4,088 4,357 11,061 11,930 -19.7% -24.6% -7.3%
  Itabrasco (Tubarão 3) 525 930 972 1,765 2,297 -43.5% -46.0% -23.2%
  Hispanobras (Tubarão 4) - - - - 169 - - -100.0%
  Nibrasco (Tubarão 5 and 6) 349 921 1,069 2,334 2,742 -62.1% -67.4% -14.9%
  Kobrasco (Tubarão 7) 924 963 826 2,856 2,236 -4.0% 11.9% 27.7%
  Tubarão 8 1,485 1,273 1,490 4,104 4,486 16.7% -0.3% -8.5%
Southern System 1,268 1,136 803 3,083 2,434 11.6% 57.9% 26.7%
  Fábrica - - - - - - - -
  Vargem Grande 1,268 1,136 803 3,083 2,434 11.6% 57.9% 26.7%
Oman 2,805 2,612 2,161 7,235 5,544 7.4% 29.8% 30.5%
PELLETS PRODUCTION 8,256 8,672 8,341 23,852 22,637 -4.8% -1.0% 5.4%
PELLETS SALES 8,521 8,843 8,037 24,375 21,955 -3.6% 6.0% 11.0%

 

Nickel - Finished production by source

            % change
000’ metric tons 3Q22 2Q22 3Q21 9M22 9M21 3Q22/2Q22 3Q22/3Q21 9M22/9M21
Canada 20.0 16.1 12.4 55.1 58.0 24.2% 61.3% -5.0%
Sudbury1 12.2 7.1 2.4 27.9 23.4 71.8% 408.3% 19.2%
Thompson 2.7 2.0 0.6 7.7 4.8 35.0% 350.0% 60.4%
Voisey's Bay 5.1 6.9 9.4 19.5 29.8 -26.1% -45.7% -34.6%
Indonesia 19.2 9.1 15.1 45.9 45.0 111.0% 27.2% 2.0%
Brazil 6.8 6.3 2.2 18.5 13.7 7.9% 209.1% 35.0%
Feed from third-parties2 5.8 2.7 0.6 12.3 3.5 114.8% 866.7% 251.4%
NICKEL PRODUCTION 51.8 34.2 30.2 131.8 120.2 51.5% 71.5% 9.7%
NICKEL SALES 44.3 39.3 41.8 122.6 137.1 12.7% 6.0% -10.6%

1 Sudbury nickel production in 2Q22 was restated from 7.7 kt.

2 External feed purchased from third parties and processed into finished nickel in our Canadian operations.

5  

 

Copper - Finished production by source

            % change
000’ metric tons 3Q22 2Q22 3Q21 9M22 9M21 3Q22/2Q22 3Q22/3Q21 9M22/9M21
Brazil 53.4 35.0 63.4 126.1 168.7 52.6% -15.8% -25.3%
Salobo 34.7 29.6 38.0 98.3 110.8 17.2% -8.7% -11.3%
Sossego 18.7 5.4 25.4 27.8 57.9 246.3% -26.4% -52.0%
Canada 20.9 20.9 5.8 60.7 50.7 0.0% 260.3% 19.7%
Sudbury 12.3 16.9 1.0 43.1 33.4 -27.2% 1130.0% 29.0%
Thompson 3.6 0.2 - 4.1 0.3 1,700.0% N/A 1266.7%
Voisey's Bay 3.3 2.5 4.6 8.9 15.2 32.0% -28.3% -41.4%
Feed from third parties 1.7 1.3 0.3 4.6 2.0 30.8% 466.7% 130.0%
COPPER PRODUCTION 74.3 55.9 69.2 186.8 219.3 32.9% 7.4% -14.8%
COPPER SALES 70.5 51.5 65.4 172.2 210.8 36.9% 7.8% -18.3%
Copper Sales Brazil 52.9 34.6 62.3 121.6 163.5 53.0% -15.0% -25.6%
Copper Sales Canada 17.6 16.9 3.1 50.6 47.3 4.1% 467.7% 7.0%

 

Base Metals by-products - Finished production

            % change
  3Q22 2Q22 3Q21 9M22 9M21 3Q22/2Q22 3Q22/3Q21 9M22/9M21
COBALT (000’ metric tons) 609 541 452 1,906 1,919 12.6% 34.7% -0.7%
PLATINUM (000’ oz troy) 32 21 2 76 62 52.4% 1,500.0% 22.6%
PALLADIUM (000’ oz troy) 37 28 4 94 79 32.1% 825.0% 19.0%
GOLD (000’ oz troy)1 84 60 93 216 275 40.0% -9.7% -21.5%

TOTAL BY-PRODUCTS

(000’ metric tons Cu eq.)2 3

 41 28 23  101 108 46.4%  78.3% -6.5%

1 Includes gold from Copper and Nickel operations.

2 Includes iridium, rhodium, ruthenium and silver.

3 Copper equivalent tonnes calculated using average market metal prices for each quarter. Market reference prices: for copper, cobalt, gold and silver: LME spot; for Platinum and Palladium: NYMEX spot; for other PGMs: Johnson Matthey.

 

6  

 

Further information on Vale can be found at: vale.com

 

Investor Relations

Vale IR: vale.ri@vale.com

Ivan Fadel: ivan.fadel@vale.com

Mariana Rocha: mariana.rocha@vale.com

Samir Bassil: samir.bassil@vale.com

 

 

 

This press release may include statements about Vale's current expectations about future events or results (forward-looking statements). Many of those forward-looking statements can be identified by the use of forward-looking words such as "anticipate," "believe," "could," "expect," "should," "plan," "intend," "estimate" “will” and "potential," among others. All forward-looking statements involve various risks and uncertainties. Vale cannot guarantee that these statements will prove correct. These risks and uncertainties include, among others, factors related to: (a) the countries where Vale operates, 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. Vale cautions you that actual results may differ materially from the plans, objectives, expectations, estimates and intentions expressed in this presentation. Vale undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information or future events or for any other reason. To obtain further information on factors that may lead to results different from those forecast by Vale, please consult the reports that Vale files with the U.S. Securities and Exchange Commission (SEC), the Brazilian Comissão de Valores Mobiliários (CVM) and, in particular, the factors discussed under “Forward-Looking Statements” and “Risk Factors” in Vale’s annual report on Form 20-F.

 

7  

 

  

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/ Ivan Fadel
Date: October 17, 2022   Head of Investor Relations

 

Vale (NYSE:VALE)
Historical Stock Chart
From Feb 2023 to Mar 2023 Click Here for more Vale Charts.
Vale (NYSE:VALE)
Historical Stock Chart
From Mar 2022 to Mar 2023 Click Here for more Vale Charts.