Brazilian miner Vale s Q1 production figures bring relief to the market
Bnamericas Published: Tuesday, April 20, 2021 You have reached your limit of free pageviews this month (5/5)
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TORONTO, April 19, 2021 /PRNewswire/ - Franco-Nevada has acquired 14.7% of Vale s outstanding Participating Debentures ( Royalty Debentures ) from the Brazilian Development Bank ( BNDES ) and the Government of Brazil for $538M. The Royalty Debentures provide holders with life of mine net sales royalties on Vale s Northern and Southeastern Iron Ore Systems and on certain copper and gold operations (together, the Royalty ). This transaction provides royalty exposure to some of the world s largest and most profitable integrated iron ore mines with reserve weighted mine lives of 30 years and potential for multiple additional decades through reserve growth. The Royalty covers a total of 15.6 thousand square kilometers of mineral properties held by Vale in Brazil, also offering exposure to a number of development properties. The Royalty currently generates an annualized pre-tax cash yield of 10% based on acquisition cost and the most recent semi-a
Brazil civic groups urge production halt at Vale mine amid COVID-19 concerns wtbx.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from wtbx.com Daily Mail and Mail on Sunday newspapers.
Although the pandemic-related impacts and measures reduced productivity in all businesses and postponed the start-up of the new iron ore assets in 2020, Vale remains confident to achieve 400 million tpy capacity by the end of 2022.
Vale 4Q20 iron ore output lower than estimated
Image from Vale.
Vale reported 4Q20 output of 84.5 million tonnes, lower than estimated by analysts, mainly due to higher rainfall levels and tailings disposal restrictions in the Southeastern System in Brazil.
The number is a 5% decline from the third quarter (88.6 Mt) but well ahead of the same period a year earlier (78.3Mt).
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Vale’s iron ore fines production totaled 300.4 Mt in 2020, in line with 2019 as a result of the resumption of halted operations such as Vargem Grande and Timbopeba, but offset by constraints in tailings disposal in Itabira and Brucutu; and delays in opening new mining fronts in Serra Norte and due to covid-19 restrictions.