Brazil’s Vale expects production increase in 2022

Brazilian mining giant Vale expects higher output of its main products – iron ore, cooper and nickel – in 2022. 

The company said in a statement it is estimating iron ore production in the 320-335Mt range. In 2021, output reached 316Mt, up 5.1%. 

Vale ended last year with an iron ore production capacity of 340Mt and it expects to boost that to 370Mt this year thanks to the ramp-up of tailings filtration plants in Itabira and Brucutu, and their respective additions of disposal capacity tailings at the Itabiruçu and Torto dams in 2H22.

Vale’s iron ore sales totaled 278Mt last year, up 8.9%.

"We maintain our outperform rating for Vale as we believe healthy iron ore prices during 2022 will support good cash generation that should translate into attractive dividends," Conrado Vegner, a mining sector analyst at Banco J. Safra, wrote in a research note. 

As for copper, Vale projects a production of between 330,000t and 355,000t this year. In 2021, the company produced 296,800t, down 17.6%, while copper sales dropped 17.8% to 284,500t. 

Nickel production is estimated at 175,000-190,000t in 2022. Last year the company's output was 168,000t and sales amounted to 181,800t, down 8.5%. and 0.7%, respectively. 

Copper and nickel production was impacted in 2021 by the temporary shutdown of its Sudbury mine in Canada.