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World’s Major Iron Ore Miners Performance in Q1 CY19

Vale- Iron ore & pellet production down amid Brumadinho dam rupture

Vale- world's largest iron ore producer witnessed drop in iron ore and pellet production for first quarter CY19 due to dam failure in Jan'19 resulting in subsequent halt at numerous mines and tailing dams. The total iron ore production for the quarter stood at 72.9 MnT, down 28% as against 101 MnT in Q4 CY18. Vale recorded drop in pellet production for the quarter at 12.2 MnT, down 23% compared to 15.8 MnT in Q4 CY18. The drop was owing to operation halt at Fabrica and Vargem Grande pellet plants due to dam rupture and scheduled maintenance at Tubarao and Oman.

Vale reaffirms its iron ore and pellet sales estimate for the year to be at the low to mid-end of 307-332 MnT. Vale’s share of premium products (pellets, Carajás, BRBF, pellet feed and sinter feed low alumina) for Q1CY19 stood at 81% and product portfolio for the quarter reached Fe 64.3%, alumina 1.2% and silica 3.5%.

Rio Tinto shipment fell amid tropical cyclone

World's second largest iron ore miner- Rio Tinto's Pilbara shipment depicted 21% fall to 69.1 MnT as compared to 87.4 MnT in Q4 CY18. The drop is due to hindrances at port facilities caused due to cyclone Veronica in Mar’19.

Rio Tinto reduces guidance for 2019
• Rio Tinto 2019 Pilbara iron ore shipment guidance is reduced to 333-343 MnT (previously 338-350 MnT)
• At IOC, the iron ore pellet and concentrate production guidance for 2019 is between 11.3-12.3 MnT

Rio Tinto's Pilbara iron ore production witnessed at 76 MnT, down 12% as against 86.6 MnT in Q4 CY18. The drop is owing to fire at Cape Lambert A port in January and cyclone Veronica in Mar’19, as a result the miner forecasted a loss of about 14 MnT in 2019 production.

BHP Group reduced iron ore production guidance for the year

BHP Group - world's third largest iron ore producer recorded production at 63.6 MnT for the quarter from Western Australia iron ore operations on 100% basis as against 65.5 MnT in Q4 CY18. The drop is attributed to cyclone veronica which hit the Pilbara region of Western Australia in Mar'19. Also, the cyclone hampered port Hedland impacting exports by the miner.BHP Group's total iron ore sales from Pilbara on 100% basis recorded at 62.9 MnT for Q1CY'19, down 4% as against 65.8 MnT in Q4 CY18. On yearly basis, the sales fell 7% as against Q1 CY18 sales at 67.8 MnT.Group's FY'19 (July'18- June'19) production guidance reduced to 265-273 MnT (100% basis) due to weather disruption in Mar'19.

FMG Iron Ore shipment fell 10% in Q1CY19

Fortescue Metals Group - world's 4th largest iron ore producer, depicted Q1 CY19 shipment at 38.3 MnT, down 10% as against last quarter at 42.5 MnT amid tropical cyclone. The cyclone affected about 2.5 MnT of shipment loss due to five day closure at port Hedland. However, shipment of west Pilbara fines increased for the quarter to 10% (3.8 MnT) of total shipment for the quarter. FMG recorded mined ore production at 48 MnT in Q1 CY19, down as against 49.2 MnT in Q4 CY18.Non-China markets accounted for 7% of total shipments during the quarter, with reduced shipments to India given strong demand and higher price realizations from the Chinese market.FMG FY'19 (July’18-June’19) shipment guidance revised to 165-170 MnT as against previously laid at 165-173 MnT. The guidance has been affected amidst closure at port Hedland and subsequent flooding at railway line in vicinity of the port.

India: NMDC iron ore production up 10% in Q1CY19

India’s largest iron ore miner recorded iron ore production at 10.6 MnT for Q1 CY19, up 10% as against 9.65 MnT in Q4 CY18. On yearly basis, production dropped as compared to 11.35 MnT in Q1 CY18.

NMDC iron ore sales for the quarter recorded at 10.25 MnT, up 17% against 8.74 MnT in Q4 CY18. Iron ore operations are still on hold at NMDC's Donimalai mine, which had renewed lease on 3rd Nov'18 for the next 20 years. But the state govt. put the additional condition to pay 80% premium on iron ore sale value from Donimalai to the Karnataka state Govt. The case was filed in the high court and both the side had kept their conclusive remark in the High Court. Judgement is still awaited, no date has been revealed.

Anglo American: Kumba iron ore production down 12% amid plant maintenance

The Anglo American Kumba iron ore production for Q1 CY19 witnessed at 9.5 MnT, down 12% as against Q1 CY18 production at 10.8 MnT. The production was on lower side due to unplanned plant maintenance at Sishen and Kolomela mine. Minas Rio mines, pellet production for the quarter witnessed at 4.9 MnT, up 61% against 3.05 MnT in Q1 CY18 amid progression of ramp-up projects. The production in Q1 CY19 picked up against 0.2 Mnt in last quarter due to operation resumption at mine in Dec’18.The production at mine was suspended in Mar’18 following discovery of two leakage in iron ore pipeline from mine to Acu port.

Anglo American: 2019 Guidance
• The 2019 production guidance for Kumba iron ore mine remain intact at 43-44 MnT
• Minas Rio pellet production guidance for 2019 remains firm at 18-20 MnT (wet MT basis).

Source: Steel mint


May 11, 2019 13:27
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