Brazil: Vale Resumes Operation at Malaysian Distribution Centre

Vale through a press release has informed the loading operation resumption at its Malaysian distribution centre (the Teluk Rubiah Maritime Terminal, “TRMT”) on 16th May’20.

The operation at TRTM was halted since 24th Mar’20 owing to the inability to secure the minimum resources to operate the terminal amidst the COVID-19 pandemic. In last few weeks, maintenance has been carried out the terminal to ensure safe return to operations.

What is Malaysian Distribution Centre?

Malaysian distribution Centre is the supply point in Asia where Brazilian ore is stored and blended facilitating reduced delivery time from Vale. The ore supply from distribution centre drops the delivery time to 10 days against 45 days from Brazil. The distribution centre handled around 23.7 MnT of iron ore in 2019.

Vale iron ore prduction fell in Q1 CY20
Vale total iron ore and pellet production depicted fall by 24% to 66.5 MnT in Q1CY20 against 87.7 MnT in Q4CY19. The iron ore fines output witnessed drop to 59.6 MnT, down 24% on quarterly basis compared to 78.3 MnT in Q4 CY19. The production for the quarter stood below the production guidance of 63-68 MnT amid unscheduled maintenance of conveyor belt at S11D, operational restrictions at the Northern Range, stronger weather related issues and heavy rains in South eastern Brazil.

The total pellet production recorded at 6.9 MnT down 27% Q-o-Q as against 9.4 MnT in Q4 CY19. It fell by 43% against 12.2 MnT in Q1 CY19.

Vale iron ore fines production guidance for CY20 reduced to 310-330 MnT against previous set guidance at 340 - 355 MnT. The reason being pandemic COVID-19 and delays related to operation resumption at Brucutu mines.