Ivanhoe’s Kipushi zinc mine in DRC officially reopens
The restart marked exactly a century since the mine first went into production.
Brazilian miner Vale, one of the world’s largest iron ore producers, said on Thursday its third-quarter net profit fell 15% from a year earlier, hit by lower prices of the steel-making ingredient and provisions related to the Mariana dam collapse.
Still, Vale posted a $2.41 billion net profit for the quarter ended in September, well above analysts’ estimates for a $1.65 billion profit as polled by LSEG.
Vale reported a 10% decline in its net revenue year-on-year to $9.55 billion, almost in line with the $9.44 billion analysts had expected.
It had already released earlier this month its third-quarter sales and output report, which showed the highest iron ore production for a quarter since 2018, but realized prices of iron ore fines dropping 14%, weighing on its profit.
Its core profit as measured by adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) came in at $3.62 billion in the quarter, down 18% from a year earlier and also broadly meeting analysts’ estimates of $3.61 billion.
Vale said in the earnings report it booked an additional $956 million provision related to the deadly collapse of a dam at an iron ore mine owned by Samarco, a joint venture between Vale and BHP, near the Brazilian city of Mariana in 2015.
The firm had already anticipated a similar impact last week as a final compensation deal approaches, with Vale saying on Thursday that it was set to sign the deal on Friday after years of talks with Brazilian authorities.
The most recent discussions were for the three miners to pay up 170 billion reais ($30 billion), with 100 billion reais of that to be paid over 20 years directly to public authorities.
Vale’s new management is eyeing a better quality portfolio with more focus on the client, CEO Gustavo Pimenta said in the earnings report. Pimenta, Vale’s former chief financial officer, joined as CEO earlier this month.
Pimenta said Vale aims to speed up efforts to offer high-quality product in its main iron ore business, while adding it plans to grow its base metal unit, particularly in copper.
In a separate filing on Thursday evening, Vale also raised its all-in cost guidance for copper for the year.
($1 = 5.6653 reais)
(By Marta Nogueira and Andre Romani; Editing by Kylie Madry and Sonali Paul)
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