CAPITAL MARKETS

Vale iron ore output hits record

VALE'S first-half iron ore production has hit a new record as oversupply concerns persist.

Kristie Batten

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Iron ore production was 159.8 million tonnes, up 9.3Mt on the first six months of 2014.

Quarterly output reached 85.3Mt, the second-highest quarter ever and the highest June quarter production ever for the company.

The company will reduce supply of high-silica ores by 25-30Mt, but will replace the volumes with higher quality product.

In May, Vale was granted the licence for the extension of the N5S mine, which is high-quality and low-cost with reserves of 888Mt at 67.2% iron.

The new N4WS mine ramped up, producing 9.6Mt at 65.1% iron and low phosphorous.

Vale said the quality of the iron ore it mined would increase in the current half.

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