Vale lifts output to 95pct of capacity after crisis - Report - 10 Oct 09

Bloomberg reported that Vale SA has increased output to 95% of capacity at its Brazilian mines, sooner than previously expected following the financial crisis.

Goldman Sachs's analysts led by Mr Marcelo Aguiar said that Vale iron ore mines in southeastern Brazil are producing at full capacity, while its higher cost mines in the country’s south are operating at 80%. Goldman Sachs previously forecast Vale to operate at 84% capacity in the fourth quarter.

It may be noted that Vale cut output of the steelmaking raw material earlier this year as the global economic crisis pared global demand.

Mr Roger Agnelli CEO of Vale said that it was restarting mines and pellet plants as demand rebounded. He added that "Vale should operate close to full iron ore and pellets capacity in 2010, which represents 330 million to 340 million tonnes of iron ore."

Sao Paulo based analyst had estimated output of 306 million tonnes in 2010.

Oct 10, 2009 11:21
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