Vale meets '24 iron ore production target, aims higher for '25

As one of the world's largest iron ore suppliers, Vale is committed to further increasing its iron ore output in the coming years. Following the 2025 production target of 325-335 million tonnes, the company aims to produce 340-360 million tonnes of iron ore in 2026, and the production estimate for 2030 is set at approximately 360 million tonnes, the release also disclosed.

The mining company announced that it has started commissioning the so-called Capanema project at its Mariana complex, which is anticipated to improve its iron ore output by about 15 million tonnes/year. The project is "an important milestone" toward achieving the company's iron ore production guidance in 2026, Vale said.

On the other hand, Vales also hopes to increase the iron content of its iron ore products, with the average Fe percentage rising from 62.3% in 2024 to 62.5% in 2025 and further up to 63% in 2026, according to the release.

While aiming for higher production and improved quality of iron ore, Vale intends to reduce the production costs. The cash cost for its iron ore production is estimated at about $22/tonne on average, while that for 2025 will range between $20.5-22/t and fall below $20/t in 2026, the release showed.

Apart from iron ore, Vale also plans to ramp up its production of copper and nickel. Specifically, the mining giant sees its copper output at 340,000-370,000 tonnes in 2025, compared with the forecasted 345,000 tonnes for this year. Its nickel production is expected to rise from around 160,000 tonnes this year to 160,000-175,000 tonnes next year.

Written by Irene Zhuang, zhuangailing@mysteel.com

Edited by Alyssa Ren, rentingting@mysteel.com