Vale reports record blended iron ore volumes in Asia

Thursday, February 16, 2017

Brazilian mining giant Vale said volumes of blended iron ore in Asia (Malaysia and China) were 41.3Mt in 2016.

The figure, which compares with 18.1Mt and 2.6Mt for 2015 and 2014, respectively, is a result of the company's ongoing strategy to bring more flexibility to the integrated supply chain by increasing offshore blending capacity, Vale said in a production report.

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In 2014, Brazilian giant Vale launched an iron ore distribution center in Malaysia, bringing it closer to its customers in Asia and increasing its competitiveness against Australian rivals BHP Billiton and Rio Tinto.

At the time, the miner said it can ship ore from Malaysia to China in about seven days.

On Thursday, Vale reported that iron ore output from its own operations rose 0.9% in 2016 to 349Mt.

The record-breaking tally was within original production guidance of 340-350Mt. Vale cited an "outstanding operational performance" of its northern system in Q4 and the start-up of [flagship iron ore project] S11D, among other factors.

Rio de Janeiro-based Vale is the world's largest iron ore producer and exporter.