Vale Signals Potential for Slower Production Growth
Vale's head of ferrous and strategy, Peter Poppinga, has been quoted by various media sources indicating during an investor call that the company could temporarily withhold up to 30 Mt of iron ore production from higher-cost mines depending on market conditions. Mr Poppinga was quoted by the Sydney Morning Herald as follows: "depending on the market, we will be prepared to reduce our production by 30 Mt. This does not mean necessarily closing down mines, we are just optimising production flows. Some mines have processing plants that we can perhaps stop for a while. So in a nutshell, we are not prepared to reduce overall capacity but rather reduce production temporarily." In December 2014 Vale outlined production (including third party ores) of 340 Mt for 2015 rising to 376 Mt for 2016 and eventually to 453 Mt in 2018. Last year's output (incl. third party ores) was 331.6 Mt. Reuters reports some of these forecasts could now be adjusted.