Report of Foreign Issuer Pursuant to Rule 13a-16 or 15d-16 (6-k)
October 18 2022 - 6:01AM
Edgar (US Regulatory)
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. |
Businesses’
highlights in 3Q22
Iron Ore and Pellets operations
| · | Northern System
production 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.
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. |
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.
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.
|
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. |
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.
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 |
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