Table of Contents

 

 

 

United States

Securities and Exchange Commission

Washington, D.C. 20549

 

FORM 6-K

 

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16

of the

Securities Exchange Act of 1934

 

For the month of

 

February 2016

 

Vale S.A.

 

Avenida Graça Aranha, No. 26
20030-900 Rio de Janeiro, RJ, Brazil

(Address of principal executive office)

 

(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)

 

(Check One) Form 20-F x Form 40-F o

 

(Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1))

 

(Check One) Yes o No x

 

(Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7))

 

(Check One) Yes o No x

 

(Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)

 

(Check One) Yes o No x

 

(If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b). 82-   .)

 

 

 



Table of Contents

 

Table of Contents:

 

Press Release

Signature Page

 

2



Table of Contents

 

 

VALE’S PRODUCTION IN 4Q15

 

 

3



Table of Contents

 

www.vale.com

 

rio@vale.com

 

Tel.: (55 21) 3814-4540

 

Investor Relations Department

 

Rogério T. Nogueira

André Figueiredo

Carla Albano Miller

Fernando Mascarenhas

Andrea Gutman

Bruno Siqueira

Claudia Rodrigues

Mariano Szachtman

Renata Capanema

 

BM&F BOVESPA: VALE3, VALE5

NYSE: VALE, VALE.P

HKEx: 6210, 6230

EURONEXT PARIS: VALE3, VALE5

LATIBEX: XVALO, XVALP

 

This press release may include statements that present Vale’s expectations about future events or results. All statements, when based upon expectations about the future and not on historical facts, involve various risks and uncertainties. Vale cannot guarantee that such statements will prove correct. These risks and uncertainties include factors related to the following: (a) the countries where we operate, especially Brazil and Canada; (b) the global economy; (c) the capital markets; (d) the mining and metals prices and their dependence on global industrial production, which is cyclical by nature; and (e) global competition in the markets in which Vale operates. To obtain further information on factors that may lead to results different from those forecast by Vale, please consult the reports Vale files with the U.S. Securities and Exchange Commission (SEC), the Brazilian Comissão de ValoresMobiliários (CVM), the French Autorité des Marchés Financiers (AMF), and The Stock Exchange of Hong Kong Limited, and in particular the factors discussed under “Forward-Looking Statements” and “Risk Factors” in Vale’s annual report on Form 20-F.

 

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Table of Contents

 

 

Production highlights

 

Rio de Janeiro, February 18, 2016 — Vale S.A. (Vale) delivered a strong operational performance in 4Q15 and in 2015, with annual and quarterly production records in iron ore, pellets, nickel, copper, cobalt and gold.

 

Ferrous Minerals

 

IRON ORE

 

·                  Annual supply record of 345.9 Mt(1) in 2015.

 

·                  Annual production record in Carajás of 129.6 Mt in 2015, 9.9 Mt higher than in 2014.

 

·                  Annual shipments(2) of 303.6 Mt in 2015, 18.9 Mt higher than in 2014.

 

·                  Quarterly production record in Carajás of 36.5 Mt, 2.6 Mt higher than in 3Q15 and 1.7 Mt higher than in 4Q14.

 

·                  Quarterly production at the N4WS and N5S extension mines in Carajás of 22.8 Mt in 4Q15, 4.9 Mt higher than in 3Q15.

 

PELLETS

 

·                  Annual production record, excluding Samarco´s output, of 46.2 Mt in 2015, 3.2 Mt higher than in 2014.

 

·                  Annual production record in Vargem Grande of 6.4 Mt in 2015, 0.6 Mt higher than in 2014, as well as annual production record in Tubarão VIII of 6.6 Mt in 2015.

 

Base Metals

 

NICKEL

 

·                  Annual production record of 291,000 t, 16,000 t higher than in 2014.

 


(1)  Excluding Samarco’s attributable production.

(2)   Including manganese (1.9 Mt), pellets (27.4 Mt) and iron ore from third parties (0.3 Mt)

 

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·                  Annual production record at VNC of 30,800 t in 2015, 12,000 t higher than in 2014, with higher production share of Nickel Oxide (NiO) vs. Nickel Hydroxide Cake (NHC).

 

·                  Annual production record from Onça Puma of 24,000 t in 2015, 3,000 t higher than in 2014.

 

·                  Annual production record from PT Vale Indonesia Tbk of 81,200 t of nickel in matte, 3,200 t higher than in 2014.

 

·                  Quarterly overall production record of 82,700 t, 11,100 t higher than in 3Q15 and 9,100 t higher than in 4Q14.

 

·                  Quarterly production record at VNC of 9,600 t, 1,500 t higher than in 3Q15 and 2,900 t higher than in 4Q14.

 

COPPER

 

·                  Annual production(3) record of 423,800 t in 2015, 44,100 t higher than in 2014.

 

·                  Annual production record at Salobo of 155,000 t in 2015, 57,000 t higher than in 2014.

 

·                  Quarterly overall production(3) record of 112,500 t, 13,200 t higher than in 3Q15 and 7,800 t higher than in 4Q14.

 

·                  Quarterly production record at Salobo of 42,000 t, 1,100 t higher than in 3Q15 and 10,400 t higher than in 4Q14.

 

COBALT

 

·                  Annual production record of 4,533 t in 2015, 790 t higher than in 2014, driven by the increase in VNC production.

 

·                  Quarterly production record of 1,271 t, 100 t higher than in 3Q15, driven by an increase in Sudbury production and by the quarterly production record at VNC.

 

GOLD

 

·                  Annual production record of 420,000 oz in 2015, 99,000 oz higher than in 2014.

 

·                  Quarterly production record of 117,000 oz, 17,000 oz higher than in 3Q15 and 23,000 oz higher than in 4Q14.

 


(3)  Including Lubambe’s attributable production

 

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Table of Contents

 

Coal

 

·                  Annual production of 7.3 Mt in 2015, 1.3 Mt lower than in 2014, due to the stoppage of the Integra Coal and the Isaac Plains mines, which were placed in care and maintenance in 2Q14 and 3Q14 respectively.

 

·                  Annual production at Moatize of 4.9 Mt in 2015, in line with 2014, but with a better product mix (metallurgical coal production increased by 8.9%, while thermal coal production decreased by 12.6%).

 

·                  Annual production at Carborough Downs of 2.4 Mt in 2015, 0.5 Mt higher than in 2014.

 

·                  Quarterly overall production of 1.6 Mt, 0.5 Mt lower than in 3Q15, negatively impacted by a long wall move in Carborough Downs and by a stoppage for adjustments at the coal-handling and processing plant (CHPP) in Moatize.

 

Fertilizers

 

·                  Annual production record at Bayóvar of 3.9 Mt in 2015, 0.1 Mt higher than in 2014.

 

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Table of Contents

 

Production summary

 

 

 

 

 

 

 

 

 

 

 

 

 

% change

 

000’ metric tons

 

4Q15

 

3Q15

 

4Q14

 

2015

 

2014

 

4Q15/3Q15

 

4Q15/4Q14

 

2015/2014

 

Iron ore(1)

 

88,411

 

90,739

 

86,297

 

345,879

 

331,556

 

-2.6

%

2.4

%

4.3

%

Pellets(1)

 

10,377

 

12,196

 

11,642

 

46,198

 

42,965

 

-14.9

%

-10.9

%

7.5

%

Manganese Ore

 

651

 

644

 

723

 

2,441

 

2,352

 

1.0

%

-10.0

%

3.8

%

Coal

 

1,585

 

2,052

 

2,310

 

7,344

 

8,645

 

-22.7

%

-31.4

%

-15.1

%

Nickel

 

82.7

 

71.6

 

73.6

 

291

 

275

 

15.4

%

12.3

%

5.7

%

Copper(2)

 

112.5

 

99.3

 

105.4

 

423.8

 

379.7

 

13.4

%

6.7

%

11.6

%

Cobalt

 

1.271

 

1.171

 

1.266

 

4.531

 

3.743

 

8.6

%

0.4

%

21.1

%

Gold (000’ oz troy)

 

117

 

100

 

94

 

420

 

321

 

17.6

%

25.6

%

30.8

%

Potash

 

137

 

125

 

147

 

481

 

492

 

10.3

%

-6.5

%

-2.3

%

Phosphate rock

 

2,122

 

1,935

 

2,209

 

8,163

 

8,421

 

9.7

%

-4.0

%

-3.1

%

 


(1) Excluding Samarco’s attributable production.

(2) Including Lubambe’s attributable production.

 

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Table of Contents

 

 

Iron Ore

 

 

 

 

 

 

 

 

 

 

 

 

 

% change

 

000’ metric tons

 

4Q15

 

3Q15

 

4Q14

 

2015

 

2014

 

4Q15/3Q15

 

4Q15/4Q14

 

2015/2014

 

Northern System

 

36,534

 

33,889

 

34,858

 

129,554

 

119,657

 

7.8

%

4.8

%

8.3

%

Carajás

 

36,534

 

33,889

 

34,858

 

129,554

 

119,657

 

7.8

%

4.8

%

8.3

%

Southeastern System

 

26,459

 

31,246

 

26,448

 

112,626

 

107,458

 

-15.3

%

0.0

%

4.8

%

Itabira

 

9,002

 

9,787

 

9,628

 

35,513

 

35,489

 

-8.0

%

-6.5

%

0.1

%

Minas Centrais

 

11,146

 

11,187

 

7,225

 

41,206

 

33,049

 

-0.4

%

54.3

%

24.7

%

Mariana

 

6,310

 

10,272

 

9,595

 

35,908

 

38,920

 

-38.6

%

-34.2

%

-7.7

%

Southern System

 

21,511

 

22,049

 

20,125

 

86,705

 

86,264

 

-2.4

%

6.9

%

0.5

%

Paraopeba

 

5,953

 

6,648

 

6,165

 

25,827

 

28,220

 

-10.3

%

-3.3

%

-8.4

%

Vargem Grande

 

8,487

 

7,554

 

6,159

 

29,259

 

25,032

 

12.3

%

37.8

%

16.9

%

Minas Itabirito

 

7,072

 

7,847

 

7,802

 

31,619

 

33,012

 

-10.0

%

-9.5

%

-4.3

%

Midwestern System

 

857

 

1,041

 

1,542

 

4,514

 

5,836

 

-17.7

%

-44.4

%

-22.6

%

Corumbá

 

408

 

627

 

1,015

 

2,819

 

3,782

 

-35.0

%

-59.8

%

-25.5

%

Urucum

 

449

 

414

 

527

 

1,695

 

2,054

 

8.6

%

-14.7

%

-17.5

%

IRON ORE

 

85,361

 

88,225

 

82,973

 

333,399

 

319,215

 

-3.2

%

2.9

%

4.4

%

TPP(1)

 

3,050

 

2,514

 

3,324

 

12,480

 

12,341

 

21.3

%

-8.2

%

0.1

%

IRON ORE + TPP

 

88,411

 

90,739

 

86,297

 

345,879

 

331,556

 

-2.6

%

2.4

%

4.3

%

Samarco(2)

 

1,555

 

3,884

 

3,823

 

12,683

 

13,146

 

-60.0

%

-59.3

%

-3.5

%

 


(1) Third Party Purchases

(2) Vale’s attributable production capacity of 50%.

 

Production summary

 

Vale’s own iron ore production, excluding iron ore acquired from third parties and Samarco’s attributable production, reached a record 333.4 Mt in 2015, 14.2 Mt higher than in 2014. Including third party purchases, annual supply reached 345.9 Mt.

 

In 2015, Carajás achieved a production record of 129.6 Mt, representing an increase of 9.9Mt in relation to 2014.

 

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The Southern System produced 86.7 Mt in 2015, its best annual volume since 2007. This 2015 production represents an increase of 0.5% against the 86.3 Mt produced in 2014.

 

The Southeastern System produced 112.6 Mt in 2015, an increase of 4.8% against the 107.5 Mt produced in 2014.

 

On a quarterly basis, Vale’s iron ore own production — ex-Samarco’s attributable production — was 85.4 Mt in 4Q15, an increase of 2.9% against the 83.0 Mt produced in 4Q14, despite the impact at the Mariana mining hub of the accident at Samarco’s Fundão tailing dam. In order to offset the production decrease at the Mariana mining hub, immediate measures were taken to improve performance in other operations, enabling Vale to reach its 4Q15 planned production target and beat its annual supply guidance by 5.9Mt.

 

In addition to the above-mentioned impact at the Mariana hub and in line with the previously announced strategy of margin optimization, less efficient operations such as some of the beneficiation plants at the Feijão, Jangada, Pico and Fábrica operations, totaling annual capacity of 13Mt, were shut down in 3Q15. Productivity gains at the Brucutu, Gongo Soco, Timbopeba, Abóboras II and Mutuca mines, and at Plant 2 in Carajás, as well the ramp up of the Conceição I, Conceição II and Vargem Grande Itabirites plants offset the production loss at the closed beneficiation plants and at the Mariana hub.

 

Conceição I and Vargem Grande Itabirites plants concluded their ramp-up in 4Q15, while the ramp-up of the Conceição II Itabirites plant started in 2Q15 and has been progressing as planned.

 

Quarterly supply, including third party purchases, reached 88.4 Mt in 4Q15. All third party supply contracts were renegotiated to guarantee a positive contribution margin. Third party volumes increased in 4Q15 vs. 3Q15 taking advantage of railway capacity availability.

 

Northern system

 

Carajás achieved a new production record of 36.5 Mt in 4Q15, 7.8% and 4.8% higher than in 3Q15 and in 4Q14, respectively, mostly due to the ramp-up of the N4WS and N5S mines and the higher capacity utilization at Plant 2.

 

Production at the N4WS mine reached 14.2 Mt in 4Q15, 30% higher than in 3Q15 whilst production from the N5S extension mine reached 8.6 Mt in 4Q15.

 

Production at Plant 2 reached 8.0 Mt in 4Q15, 0.4 Mt higher than in 3Q15.

 

The average product grades from Carajás were 65.2% of iron ore, 1.8% of silica, 1.4% of alumina and 0.063% of phosphorus.

 

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Southeastern system

 

The Southeastern System, which encompasses the Itabira, Minas Centrais and Mariana mining hubs, produced 26.5 Mt in 4Q15, 4.8 Mt lower than in 3Q15 and in line with 4Q14.

 

Production at the Itabira mining hub was 9.0 Mt, 8.0% and 6.5% lower than in 3Q15 and 4Q14, respectively. The decrease in 4Q15 was mostly driven by the production halt for the tie-ins of the new beneficiation lines at the Conceição Itabirites II plant, whose ramp-up is progressing as planned.  The operational performance of the Conceição I Itabirites plant, which ramp-up was concluded in 4Q15, has exceeded expectations.

 

Production at the Minas Centrais mining hub was 11.1 Mt in 4Q15, in line with 3Q15 and 3.9 Mt higher than in 4Q14, as a result of the ramp-up of the 5th beneficiation line at the Brucutu processing plant, which produced 1.5 Mt in 4Q15.

 

Production at the Mariana mining hub was 6.3 Mt, 38.6% and 34.2% lower than in 3Q15 and 4Q14, respectively, due to the accident at Samarco’s Fundão tailing dam. Since then: (i) Vale´s Alegria mine is operating with a dry beneficiation process at a lower mine productivity; (ii) Vale´s Timbopeba plant stopped production due to the destruction of the conveyor belt which fed ROM from the Fabrica Nova mine; and (iii) Vale´s Fazendão mine interrupted its ROM production with the stoppage of Samarco’s operations.

 

Southern system

 

The Southern System, composed of the Paraopeba, Vargem Grande and Minas Itabirito mining hubs, produced 21.5 Mt in 4Q15, 2.4% lower than in 3Q15 but 6.9% higher than in 4Q14.

 

Production at the Paraopeba mining hub was 0.7 Mt lower than in 3Q15, as a result of the end of a ROM sales contract. Production in 4Q15 was 0.2 Mt lower than in 4Q14, due to the stoppage of the Feijão and Jangada processing plants, but was partially offset by productivity gains at other plants. Both the Feijão and Jangada processing plants had higher beneficiation costs and delivered a lower quality product. The shutdown of these plants was a result of Vale´s strategy of reducing production of lower margin products.

 

Production at the Vargem Grande mining hub achieved a new record with an output of 8.5 Mt in 4Q15, 12.3% and 37.8% higher than in 3Q15 and in 4Q14, respectively, as a result of the ramp-up of the Vargem Grande Itabirites plant and the Abóboras II dry processing plant. The Vargem Grande Itabirites plant completed its ramp-up in 4Q15, reaching production of 2.1 Mt in 4Q15 and 5.4 Mt in 2015. The plant is currently producing high grade ore as planned. The Abóboras II dry processing plant produced 0.9 Mt in 4Q15.

 

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Production at the Minas Itabirito mining hub amounted to 7.1 Mt, 10% and 9.5% lower than in 3Q15 and 4Q14, respectively, as a result of our strategy to reduce production of lower quality products. Production was reduced at the Fábrica and Pico mines.

 

Midwestern system

 

The Midwestern System, comprising the Urucum and the Corumbá mines, produced 0.9 Mt in 4Q15, 0.2 Mt and 0.7 Mt lower than in 3Q15 and 4Q14, respectively, as a result of Vale’s strategy to optimize inventory levels.

 

Samarco

 

In 4Q15 Samarco’s pellet feed production (mostly dedicated to the production of Samarco’s pellets) was 1.6 Mt, 60% lower than in 3Q15 and 4Q14, as a result of the interruption in production caused by the Samarco’s Fundão tailings dam accident.

 

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Pellets

 

 

 

 

 

 

 

 

 

 

 

 

 

% change

 

000’ metric tons

 

4Q15

 

3Q15

 

4Q14

 

2015

 

2014

 

4Q15/3Q15

 

4Q15/4Q14

 

2015/2014

 

Southeastern System

 

6,414

 

7,200

 

7,058

 

27,934

 

25,385

 

-10.9

%

-9.1

%

10.0

%

Itabrasco (Tubarão 3)

 

953

 

1,052

 

1,105

 

4,265

 

4,449

 

-9.4

%

-13.7

%

-4.1

%

Hispanobras (Tubarão 4)

 

992

 

1,122

 

1,115

 

4,301

 

4,409

 

-11.6

%

-11.0

%

-2.4

%

Nibrasco (Tubarão 5 and 6)

 

1,752

 

2,180

 

2,382

 

8,401

 

9,464

 

-19.6

%

-26.4

%

-11.2

%

Kobrasco (Tubarão 7)

 

1,100

 

1,125

 

1,200

 

4,402

 

4,574

 

-2.2

%

-8.3

%

-3.8

%

Tubarão 8

 

1,616

 

1,720

 

1,257

 

6,564

 

2,490

 

-6.0

%

28.6

%

163.6

%

Southern System

 

2,462

 

2,649

 

2,193

 

10,101

 

8,972

 

-7.1

%

12.3

%

12.6

%

Fabrica

 

978

 

946

 

780

 

3,731

 

3,211

 

3.4

%

25.4

%

16.2

%

Vargem Grande

 

1,484

 

1,702

 

1,413

 

6,370

 

5,761

 

-12.8

%

5.0

%

10.6

%

Oman

 

1,502

 

2,347

 

2,391

 

8,163

 

8,608

 

-36.0

%

-37.2

%

-5.2

%

TOTAL PELLETS

 

10,377

 

12,196

 

11,642

 

46,198

 

42,965

 

-14.9

%

-10.9

%

7.5

%

Samarco (1)

 

1,605

 

3,564

 

3,529

 

12,312

 

12,054

 

-55.0

%

-54.5

%

2.1

%

 


(1) Vale’s attributable production capacity of 50%.

 

Production overview

 

Vale’s pellet production, excluding Samarco’s attributable production of 12.3 Mt, reached a record 46.2 Mt in 2015 with the ramp-up of the Tubarão 8 plant.

 

Vale’s pellet production, excluding Samarco’s attributable production of 1.6 Mt, reached 10.4 Mt in 4Q15. Production in 4Q15 was 14.9% lower than in 3Q15 and 10.9% lower than in 4Q14, mainly due to scheduled maintenance stoppages at some plants.

 

Southeastern system

 

Production at the Tubarão pellet plants — Tubarão 3, 4, 5, 6, 7 and 8 — amounted to 6.4 Mt in 4Q15, 10.9% and 9.1% lower than in 3Q15 and 4Q14, respectively, mainly due to scheduled maintenance stoppages in Plants 3, 4, 5 and 6.

 

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Table of Contents

 

Southern system

 

Production at the Fábrica pellet plant was 1.0 Mt in 4Q15, 3.4% higher than in 3Q15 and 25.4% higher than in 4Q14, due to higher availability of pellet feed.

 

Production at the Vargem Grande pellet plant amounted to 1.5 Mt, 12.8% lower than in 3Q15 and 5.0% higher than in 4Q14, mainly as a result of lower feed availability.

 

Oman operations

 

Production at the Oman pellet plant reached 1.5 Mt in 4Q15, 36.0% lower than in 3Q15, due to a scheduled maintenance stoppage in the pellet plant.

 

Samarco

 

Samarco’s attributable production was 1.6 Mt in 4Q15, 55.0% lower than in 3Q15 and 54.5% lower than in 4Q14, as result of the accident at Samarco’s Fundão tailings dam on November 5th, 2015.

 

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Table of Contents

 

Manganese ore and ferroalloys

 

 

 

 

 

 

 

 

 

 

 

 

 

% change

 

000’ metric tons

 

4Q15

 

3Q15

 

4Q14

 

2015

 

2014

 

4Q15/3Q15

 

4Q15/4Q14

 

2015/2014

 

MANGANESE ORE

 

651

 

644

 

723

 

2,441

 

2,352

 

1.0

%

-10.0

%

3.8

%

Azul

 

485

 

468

 

513

 

1,706

 

1,695

 

3.7

%

-5.4

%

0.6

%

Urucum

 

166

 

177

 

177

 

735

 

601

 

-6.2

%

-6.3

%

22.3

%

Other mines

 

 

 

33

 

 

56

 

n.m.

 

n.m.

 

n.m.

 

FERROALLOYS

 

20

 

21

 

41

 

99

 

171

 

-6.2

%

-51.3

%

-41.8

%

Brazil

 

20

 

21

 

41

 

99

 

171

 

-6.2

%

-51.3

%

-41.8

%

 

Production overview

 

In 2015, manganese ore production increased by 3.8% and the output of ferroalloys was 41.8% lower than in 2014.

 

The ferroalloy plants in Minas Gerais (in Barbacena and Ouro Preto) remain shut down since 1Q15 as existing energy contracts expired and energy costs increased, impacting the economic viability of the ferroalloy operations. Production of manganese ore in the Morro da Mina mine was halted as a consequence of the stoppage of ferroalloy plants in Minas Gerais.

 

Manganese ore production

 

Production from the Azul manganese mine reached 485,000 t in 4Q15, 3.7% higher than in 3Q15, as a result of better productivity and greater sinter feed availability.

 

Production from the Urucum mine reached 166,000 t in 4Q15, 6.2% lower than in 3Q15, as a result of scheduled maintenance carried out at the main access to the underground mine.

 

Ferroalloy production

 

Ferroalloy production in 4Q15 was 20,000 t, 6.2% lower than in 3Q15, as one furnace in Barbacena operated to fulfill commercial contracts in July and was stopped again from August to December.

 

Production was comprised of 11,400 t of ferrosilicon manganese alloys (FeSiMn), 8,500 t of high-carbon manganese alloys (FeMnHC), with no production of medium-carbon manganese alloys (FeMnMC) due to lower market demand.

 

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Table of Contents

 

 

Nickel

 

Finished production by source

 

 

 

 

 

 

 

 

 

 

 

 

 

% change

 

000’ metric tons

 

4Q15

 

3Q15

 

4Q14

 

2015

 

2014

 

4Q15/3Q15

 

4Q15/4Q14

 

2015/2014

 

Canada

 

39.7

 

38.5

 

42.1

 

160

 

156

 

3.0

%

-5.8

%

2.3

%

Sudbury

 

13.0

 

18.3

 

15.1

 

54

 

64

 

-28.8

%

-13.4

%

-15.3

%

Thompson

 

7.1

 

4.9

 

6.5

 

25

 

26

 

45.5

%

10.1

%

-5.0

%

Voisey’s Bay

 

14.7

 

9.6

 

12.6

 

53

 

48

 

53.5

%

16.8

%

9.8

%

Ore from third parties(1)

 

4.8

 

5.7

 

8.0

 

28

 

18

 

-16.1

%

-40.0

%

57.2

%

Indonesia

 

28.3

 

19.8

 

20.3

 

80

 

79

 

42.4

%

39.3

%

1.1

%

New Caledonia(2)

 

8.3

 

7.3

 

6.2

 

27

 

19

 

13.4

%

33.2

%

43.9

%

Brazil

 

6.4

 

5.9

 

5.0

 

24

 

21

 

8.4

%

28.2

%

13.9

%

TOTAL NICKEL

 

82.7

 

71.6

 

73.6

 

291

 

275

 

15.4

%

12.3

%

5.7

%

 


(1) External feed purchased from third parties and processed into finished nickel in our operations.

(2) Production at VNC reached 9,600 t in 4Q15 and 30,800 t in 2015, whereas production of finished nickel from VNC totaled 8,300 t in 4Q15 and 27,000 t in 2015; the differences stem from the required processing time into finished nickel.

 

Production overview

 

Production of nickel reached a record 291,000 t in 2015. Nickel production reached 82,700 t in 4Q15, also a quarterly record, being 15.4% and 12.3% higher than in 3Q15 and in 4Q14, respectively.

 

Canadian operations

 

Production from the Sudbury mines reached 13,000 t in 4Q15, 28.8% and 13.4% lower than in 3Q15 and in 4Q14, respectively. Production was negatively impacted by lower than planned output at the Stobie mine, given the two seismic events that occurred in July and August. The mine operated at a lower production rate while mine redesign and remediation work were taking place. The Sudbury mill processed more feed from Voisey’s Bay (Ovoid mine) to partially offset the lower production volumes from the Stobie mine.

 

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Table of Contents

 

Production from the Thompson mines reached 7,100 t in 4Q15, being 45.5% higher than in 3Q15 as the operation carried out scheduled maintenance in August 2015 and 10.1% higher than in 4Q14.

 

Production from the Voisey’s Bay mine reached 14,700 t in 4Q15, 53.5% higher than in 3Q15 and 16.8% higher than in 4Q14, with the resumption of the Sudbury and Thompson smelters after the planned maintenance carried out in August 2015.

 

Production at the Long Harbour processing plant reached 5,000 t in 4Q15, 40.8% higher than in 3Q15 as the operation continues its ramp-up. The plant operated on a blend of PTVI matte and nickel concentrate from Voisey’s Bay in 2015 and began operating solely on nickel concentrate from Voisey’s Bay in the beginning of 2016.

 

Indonesian operation (PTVI)

 

Production of finished nickel from PTVI reached 28,300 t in 4Q15, 42.4% higher than in 3Q15 as the availability of matte from PTVI was restored in 3Q15 after the maintenance shutdowns carried out in 1H15.

 

New Caledonia operations (VNC)

 

Production of NiO and NHC at VNC reached a record 9,600 t in 4Q15. VNC increased front end and back end operational stability in the plant and achieved a production record of 30,800 t in 2015. NiO represented 83% and NHC 17% of VNC’s 4Q15 production.

 

Brazilian operation (Onça Puma)

 

Production from the Onça Puma operation reached 6,400 t, 8.4% and 28.2% higher than in 3Q15 and in 4Q14, respectively. In 2015, the Onça Puma operation recorded production of 24,400 t of nickel in ferronickel, a new record for that operation as it nears its nominal capacity of 25,000 t.

 

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Table of Contents

 

 

Copper

 

Finished production by source

 

 

 

 

 

 

 

 

 

 

 

 

 

% change

 

000’ metric tons

 

4Q15

 

3Q15

 

4Q14

 

2015

 

2014

 

4Q15/3Q15

 

4Q15/4Q14

 

2015/2014

 

BRAZIL

 

64.8

 

65.4

 

58.4

 

260

 

208

 

-1.0

%

10.9

%

24.7

%

Sossego

 

22.8

 

25.3

 

26.9

 

104

 

110

 

-10.2

%

-15.3

%

-5.3

%

Salobo

 

42.0

 

40.1

 

31.6

 

155

 

98

 

4.9

%

33.1

%

58.2

%

CANADA

 

45.5

 

31.4

 

44.6

 

154

 

161

 

44.7

%

2.0

%

-4.2

%

Sudbury

 

31.3

 

19.0

 

23.3

 

98

 

98

 

65.0

%

34.3

%

0.4

%

Thompson

 

0.3

 

0.1

 

0.4

 

1

 

2

 

291.4

%

-26.0

%

-24.0

%

Voisey’s Bay

 

10.8

 

7.8

 

11.4

 

32

 

33

 

37.9

%

-5.3

%

-2.7

%

Ore from third parties

 

3.1

 

4.6

 

9.5

 

23

 

29

 

-32.0

%

-67.1

%

-20.3

%

TOTAL EX-LUBAMBE

 

110.3

 

96.9

 

103.0

 

414

 

369

 

13.9

%

7.1

%

12.1

%

Lubambe(1)

 

2.2

 

2.4

 

2.4

 

10

 

10

 

-6.4

%

-6.1

%

-3.9

%

TOTAL COPPER

 

112.5

 

99.3

 

105.4

 

424

 

380

 

13.4

%

6.7

%

11.6

%

 


(1) Attributable production.

 

Production overview

 

Copper production achieved a new annual record of 423,800 t in 2015. The production increase was driven primarily by the ramp-up of Salobo’s second line.

 

Copper production reached 112,500 t in 4Q15, also a new record for our operations, being 13.4% and 6.7% higher than in 3Q15 and in 4Q14, respectively.

 

Brazilian operations

 

Production of copper in concentrate at Sossego totaled 22,800 t in 4Q15, 10.2% and 15.3% lower than in 3Q15 and in 4Q14, respectively, as a result of unscheduled maintenance at the crushing and grinding section of the plant.

 

Production of copper in concentrate at Salobo achieved a quarterly record of 42,000 t in 4Q15 and 155,400 t in 2015.  Salobo’s copper production was below plan in 2015 due to the lower grade ore at the Salobo mine and the lower stability at the concentration plant throughout the year.  Salobo’s concentration plant processed ROM at almost full capacity (24,000,000 tpy) in

 

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Table of Contents

 

4Q15. Salobo is expected to improve copper production in 2Q16, as rain decreases and higher grade ore faces are mined. Salobo is expected to reach its full production capacity in 2H16.

 

Canadian operations

 

Production of copper from Sudbury reached 31,300 t in 4Q15, 65.0% higher than in 3Q15, as the operation carried out scheduled maintenance in 3Q15. Production was 34.3% higher than in 4Q14.

 

Production of copper from Voisey’s Bay reached 10,800 t in 4Q15, 37.9% higher than in 3Q15 due to the higher supply of feed to Sudbury and Thompson after the planned maintenance carried out at the Sudbury and Thompson smelters in August 2015. Production was 5.3% lower than in 4Q14.

 

African operation (Lubambe)

 

Lubambe delivered 5,600 t of copper in concentrate on a 100% basis (attributable production of 2,200 t).

 

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Table of Contents

 

 

Nickel and copper by-products

 

Finished production by source

 

 

 

 

 

 

 

 

 

 

 

 

 

% change

 

 

 

4Q15

 

3Q15

 

4Q14

 

2015

 

2014

 

4Q15/3Q15

 

4Q15/4Q14

 

2015/2014

 

COBALT (metric tons)

 

1,271

 

1,171

 

1,266

 

4,533

 

3,743

 

8.6

%

0.4

%

21.1

%

Sudbury

 

272

 

171

 

226

 

751

 

833

 

59.3

%

20.3

%

-9.8

%

Thompson

 

86

 

91

 

160

 

365

 

489

 

-5.4

%

-45.9

%

-25.4

%

Voisey’s Bay

 

90

 

263

 

242

 

849

 

952

 

-65.7

%

-62.6

%

-10.9

%

VNC

 

780

 

611

 

629

 

2,391

 

1,384

 

27.6

%

23.9

%

72.7

%

Others

 

43

 

34

 

9

 

177

 

84

 

25.7

%

382.8

%

111.7

%

PLATINUM (000’ oz troy)

 

37

 

29

 

52

 

154

 

182

 

30.6

%

-28.4

%

-15.6

%

Sudbury

 

37

 

29

 

52

 

154

 

182

 

30.6

%

-28.4

%

-15.6

%

PALLADIUM (000’ oz troy)

 

79

 

56

 

112

 

341

 

398

 

42.3

%

-28.9

%

-14.2

%

Sudbury

 

79

 

56

 

112

 

341

 

398

 

42.3

%

-28.9

%

-14.2

%

GOLD (000’ oz troy)

 

117

 

100

 

94

 

420

 

321

 

17.6

%

25.6

%

30.8

%

Sudbury

 

24

 

15

 

24

 

89

 

83

 

63.8

%

-0.1

%

6.9

%

Sossego

 

18

 

19

 

20

 

80

 

78

 

-6.7

%

-11.8

%

2.7

%

Salobo

 

75

 

66

 

49

 

251

 

160

 

14.3

%

53.8

%

56.8

%

SILVER (000’ oz troy)

 

518

 

415

 

717

 

1,669

 

1,693

 

24.8

%

-27.7

%

-1.4

%

Sudbury

 

518

 

415

 

717

 

1,669

 

1,693

 

24.8

%

-27.7

%

-1.4

%

 

Cobalt

 

Cobalt production achieved a record 4,533 t in 2015 and totaled 1,271 t in 4Q15, driven by the higher production at VNC.

 

Cobalt production from Voisey’s Bay decreased to 90 t in 4Q15 from the 263 t in 3Q15 as nickel concentrate from Voisey’s Bay is being directed to Long Harbour, which did not produce any cobalt in 4Q15.  Long Harbour is expected to start producing cobalt in 2016.

 

Cobalt production from Sudbury increased to 272 t in 4Q15, up from 171 t in 3Q15, as the Sudbury smelter resumed production after its planned maintenance in August 2015.

 

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Table of Contents

 

Platinum and palladium

 

Platinum production was 37,000 oz and palladium production was 79,000 oz, 30.6% and 42.3% higher than in 3Q15, respectively, as Sudbury operated fully in the quarter.

 

Gold

 

Gold production had a record output of 420,100 oz in 2015 and a record 17,500 oz in 4Q15. Production increased with the operation of Sudbury at full capacity and the continued ramp-up of Salobo in 4Q15.

 

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Table of Contents

 

 

Coal

 

 

 

 

 

 

 

 

 

 

 

 

 

% change

 

000’ metric tons

 

4Q15

 

3Q15

 

4Q14

 

2015

 

2014

 

4Q15/3Q15

 

4Q15/4Q14

 

2015/2014

 

METALLURGICAL COAL­

 

1,244

 

1,644

 

1,790

 

5,784

 

6,443

 

-24.3

%

-30.5

%

-10.2

%

Moatize

 

873

 

914

 

987

 

3,401

 

3,124

 

-4.5

%

-11.5

%

8.9

%

Carborough Downs

 

371

 

730

 

573

 

2,383

 

1,857

 

-49.2

%

-35.3

%

28.3

%

Integra Coal

 

0

 

0

 

0

 

0

 

715

 

n.m.

 

n.m.

 

n.m.

 

Isaac Plains

 

0

 

0

 

230

 

0

 

746

 

n.m.

 

n.m.

 

n.m.

 

THERMAL COAL

 

341

 

408

 

520

 

1,560

 

2,202

 

-16.5

%

-34.5

%

-29.2

%

Moatize

 

341

 

408

 

446

 

1,559

 

1,784

 

-16.4

%

-23.6

%

-12.6

%

Integra Coal

 

0

 

0

 

0

 

0

 

92

 

n.m.

 

n.m.

 

n.m.

 

Isaac Plains

 

0

 

0

 

74

 

0

 

326

 

n.m.

 

n.m.

 

n.m.

 

TOTAL COAL

 

1,585

 

2,052

 

2,310

 

7,344

 

8,645

 

-22.7

%

-31.4

%

-15.1

%

 

Production overview

 

Coal production reached 7.3 Mt in 2015, 15% lower than in 2014. The reduction was caused by the stoppage of the Integra Coal and Isaac Plains mines, which were placed in care and maintenance in 2Q14 and 3Q14 respectively.

 

Production of coal amounted to 1.6 Mt in 4Q15, 23% and 31% lower than in 3Q15 and 4Q14, respectively, as a result of a longwall move at Carborough Downs and a short stoppage at the coal handling and processing plant in Moatize.

 

Australian operations

 

Production in Australia reached 2.4Mt in 2015, 36% lower than in 2014, due to the stoppage of both the Integra Coal and the Isaac Plains mines in 2014.

 

Production at the Carborough Downs mine was 2.4 Mt in 2015, 28% higher than in 2014, due to the geological impact on the productivity of the longwall operation in 2014. Production amounted to 371,000 t in 4Q15, 49% and 35% lower than in 3Q15 and 4Q14 respectively, due to the longwall move in 4Q15.

 

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Table of Contents

 

Moatize operations

 

Production at Moatize was 4.9 Mt in 2015, in line with 2014. Production of metallurgical coal increased by 8.9%, while production of thermal coal decreased by 12.6%. The share of metallurgical coal reached 72% in 2015.

 

Production at Moatize was 1.214 Mt in 4Q15, 108,000 t lower than in 3Q15, due to the lower physical availability of the plant. Operational performance was affected by preventive and corrective interventions in the coal-handling and processing plant as well as tie-ins with Moatize II. Moatize II is currently under commissioning with completion of cargo testing expected for March 2016.

 

Raw coal availability has also been reduced as a result of the revised mine plan, due to fire on 2 excavators in June and July 2015, which have already been replaced.

 

The upgrade of the whole brownfield section of the railway, connecting the Moatize site to the Nacala-à-Velha maritime terminal, was completed by the end of 2015 with four shipments delivered as of January 2016.

 

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Table of Contents

 

 

Fertilizer Nutrients

 

Potash

 

 

 

 

 

 

 

 

 

 

 

 

 

% change

 

000’ metric tons

 

4Q15

 

3Q15

 

4Q14

 

2015

 

2014

 

4Q15/3Q15

 

4Q15/4Q14

 

2015/2014

 

POTASH

 

137

 

125

 

147

 

481

 

492

 

10.3

%

-6.5

%

-2.3

%

Taquari-Vassouras

 

137

 

125

 

147

 

481

 

492

 

10.3

%

-6.5

%

-2.3

%

 

Phosphates

 

 

 

 

 

 

 

 

 

 

 

 

 

% change

 

000’ metric tons

 

4Q15

 

3Q15

 

4Q14

 

2015

 

2014

 

4Q15/3Q15

 

4Q15/4Q14

 

2015/2014

 

PHOSPHATE ROCK

 

2,122

 

1,935

 

2,209

 

8,163

 

8,421

 

9.7

%

-4.0

%

-3.1

%

Brazil

 

1,102

 

977

 

1,205

 

4,282

 

4,620

 

12.9

%

-8.5

%

-7.3

%

Bayóvar

 

1,019

 

958

 

1,004

 

3,881

 

3,801

 

6.4

%

1.5

%

2.1

%

MAP(1)

 

276

 

242

 

278

 

1,097

 

1,065

 

14.1

%

-0.7

%

3.0

%

TSP(2)

 

206

 

189

 

254

 

866

 

910

 

8.8

%

-19.0

%

-4.8

%

SSP(3)

 

523

 

495

 

460

 

1,953

 

1,854

 

5.7

%

13.8

%

5.3

%

DCP(4)

 

129

 

130

 

135

 

480

 

502

 

-0.6

%

-4.5

%

-4.4

%

 


(1) Monoammonium phosphate

(2) Triple superphosphate

(3) Single superphosphate

(4) Dicalcium phosphate

 

Potash

 

Production of potash totaled 481,000 t in 2015, 2.3% lower than in 2014, due to the lower grades at the mine.

 

Potash production reached 137,000 t in 4Q15, 10.3% higher than in 3Q15 due to higher productivity at the concentration plant but 6.5% lower than in 4Q14 due to lower ore grades.

 

Phosphate Rock

 

Production of phosphate rock was 8.2 Mt in 2015, 3.1% lower than in 2014, as a result of a 7.3% production decline at the Brazilian operations with the stoppage of both the Araxá and Patos de Minas units in 3Q15 in order to balance supply chain demands.

 

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Table of Contents

 

Output from the Brazilian operations was 1.1 Mt in 4Q15, 12.9% higher than in 3Q15, with the resumption of operations in Araxá. Production was 8.5% lower than in 4Q14, due to: (i) the stoppage of the Patos de Minas Unit, (ii) the maintenance stoppage in Catalão and (iii) the lower productivity at the Tapira beneficiation plant.

 

Bayóvar’s output was 1.0 Mt in 4Q15, 6.4% higher than in 3Q15, as a result of the implementation of adjustments in the production process and the elimination of shipment constrains. Production was 1.5% higher than in 4Q14.

 

MAP

 

Production of MAP (monoammonium phosphate) totaled 1.1 Mt in 2015, 3% higher than in 2014, as production increased to meet stronger demand.

 

Production of MAP totaled 276,000 t in 4Q15, 14.1% higher and 0.7% lower than in 3Q15 and 4Q14, respectively. Production increased due to better availability of phosphoric acid.

 

TSP

 

Production of TSP (triple superphosphate) totaled 866,000 t in 2015, 4.8% lower than in 2014 as phosphoric acid was channeled into the production of MAP due to its better market demand.

 

Production of TSP totaled 206,000 t in 4Q15, 8.8% higher than in 3Q15, due to the reestablishment of the phosphoric acid supply. Production was 19.0% lower than in 4Q14 due to the prioritization of MAP production.

 

SSP

 

Production of SSP (single superphosphate) totaled 1.9 Mt in 2015, 5.3% higher than in 2014, due to higher production at Uberaba and absence of stoppages at the Cubatão plant.

 

Production of SSP totaled 523,000 t in 4Q15, 5.7% and 13.8% higher than in 3Q15 and 4Q14, respectively. Production increased on the back of the reestablishment of the Catalão and Cubatão operations.

 

DCP

 

DCP (dicalcium phosphate) production totaled 480,000 t in 2015, 4.4% lower than in 2014 as a result of lower production at the the Cajati plant, due to limited availability of resources, which was only partially offset by the record production in Uberaba.

 

DCP production totaled 129,000 t in 4Q15, 0.6% and 4.5% lower than in 3Q15 and 4Q14 respectively, due to the lack of phosphoric acid for the operation.

 

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Table of Contents

 

Nitrogen

 

 

 

 

 

 

 

 

 

 

 

 

 

% change

 

000’ metric tons

 

4Q15

 

3Q15

 

4Q14

 

2015

 

2014

 

4Q15/3Q15

 

4Q15/4Q14

 

2015/2014

 

AMMONIA

 

6

 

42

 

35

 

138

 

178

 

-86.0

%

-83.2

%

-22.6

%

NITRIC ACID

 

116

 

127

 

120

 

475

 

469

 

-8.4

%

-2.8

%

1.3

%

AMMONIUM NITRATE

 

130

 

144

 

125

 

515

 

485

 

-10.2

%

3.3

%

6.3

%

 

Ammonia production

 

Ammonia production totaled 138,000 t in 2015, 22.6% lower than in 2014, due to the maintenance stoppage at the Cubatão plant in 4Q15.

 

Ammonia production totaled 6,000 t in 4Q15, 86.0% and 83.2% lower than in 3Q15 and 4Q14 respectively, due to the above-mentioned maintenance stoppage.

 

Nitric acid and ammonium nitrate production

 

Production of nitric acid was 475,000 t in 2015, 1.3% higher than in 2014, due to the good production levels achieved in the first nine months of the year.

 

Nitric acid production totaled 116,000 t in 4Q15, 8.4% and 2.8% lower than in 3Q15 and 4Q14 respectively, due to the necessary maintenance stoppage at Cubatão.

 

Ammonium nitrate production was 515,000 t in 2015, 6.3% higher than in 2014, due to the good production volumes accumulated in the first nine months of the year.

 

Ammonium nitrate production totaled 130,000 t in 4Q15, 10.2% lower than in 3Q15, due to the above-mentioned stoppage at Cubatão.

 

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Table of Contents

 

Signatures

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

Vale S.A.

 

(Registrant)

 

 

 

 

By:

/s/ Rogerio Nogueira

Date: February 18, 2016

 

Director of Investor Relations

 

27