Vale sets iron ore production record

Vale, the world’s biggest iron ore miner, has posted a record-breaking June quarter of iron ore production.

Vale produced 85.3 million tonnes of iron ore in the second quarter, 7.4 per cent more than the same period last year, and the second-highest ever for the company.

Production of iron ore in the first half of 2015 reached a new record of 159.8 Mt, 9.3 Mt higher than in the first half of 2014.

Vale plans to produce 340 million tonnes of iron ore this year as it wins the battle for market share over BHP Billiton and Rio Tinto.

Earlier this month, Vale announced plans to cut 25 million metric tonnes of high cost iron ore from its portfolio, replacing it with low-cost supply.

Vale’s executive director, Peter Poppinga, says the decision is based on predictions that the iron ore market will remain oversupplied into 2016.

The company is also the world’s largest producer of nickel, producing 67,100 tonnes in the second quarter.

Vale also produced a total of 2 million tonnes of coal in the quarter.

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.