Vale S.A. reported Northern System (Carajas) results for the quarter and half year ended June 30, 2009. Iron ore output was 20.5 Mt, slightly above the level reached in 1Q09. Carajás operating activities in 2Q09 suffered the negative impact of heavy rains, which in addition to the intensity of the precipitation level were not usual for this time of the year. In spite of this event, the high-quality low-cost Carajás iron ore represented 35.5% of our total production in 2Q09, against 29.8% in 2Q08. Given that most of the future capacity expansion will be in Carajás, it will be responsible for an increasing share
of our total iron ore output. At Carajás, proven and probable reserves are 7.2 billion metric tons — with an average iron content of 67% — accounting for 50.3% of Vale’s total P&P iron ore reserves of 14.3 billion metric tons.
Reported that expansion of iron ore production capacity at Carajás 130 Mtpy, Northern system is underway, This project will add 30 million metric tons a year of production capacity, with the building of a new plant, consisting of primary crushing, processing and classification units and significant
investments in logistics (car dumpers, stockyards and terminals). Completion scheduled for 2H09.
June 30, 2006
Expansion of Carajás iron ore capacity to 85 Mtpy was expected for completion by third quarter 2006. This project will increase capacity by 15 million tons per year.
During 2005, Production at Carajas totaled 72.5 million tons, an increase of 4.5% over 2004. Regular operation there was to some extent hindered in the short term by the program of expansion of its capacity to 100 million tons/year, and although the 2005 output was still a record, it was a little less than planned. In the Northern System, the iron ore projects are those to increase the production capacity of Carajás to 100 million tons per year; two projects respectively named Carajás 85 Mtpa and Carajás 100 Mtpa. These projects will increase production from 233.8 million tons per year in 2005 to approximately 300 million tons per year in 2007.