Vale cuts Iron Ore Sales Outlook Range
Brazilian iron ore miner Vale on Monday said it now expects sales of iron ore and pellets to be between 307 million and 312 million tonnes in 2019, further reducing its full-year outlook as it grapples with the aftermath of a deadly dam burst.
Vale has been compelled to halt production at various facilities because of safety worries after the collapse of a tailings dam in the town of Brumadinho that killed more than 250 people in the company's second fatal accident in less than four years.
The miner had initially forecast that 2019 sales would stand at the midpoint of a range of 307 million to 332 million tonnes, before saying in October that it expected them to come between the lower end and the midpoint of the range, which would have been 319.5 million.
The outlook change is due to "greater visibility on sales expected for the fourth quarter," which should be between 83 million and 88 million tons.
The company also said that for the first quarter, production and sales are expected to be between 70 million and 75 million tonnes, "due to seasonality, the gradual and safe return of operations and in line with margin over volume strategy."
Vale shares were down 1.8% in late morning trading in Sao Paulo, hitting their lowest level in over a week.
(Reuters reporting By Christian Plumb and Roberto Samora; Editing by Andrea Ricci)