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UPDATE 1-Brazil's Vale signals slight iron ore production drop

Published 21/04/2016, 08:17 am
© Reuters.  UPDATE 1-Brazil's Vale signals slight iron ore production drop
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(Adds output guidance, production in 2015)

BRASILIA, April 20 (Reuters) - Brazilian miner Vale said on Wednesday it expects full-year iron ore production to come in at the lower end of guidance, as the world's largest iron ore producer joined Australian rivals in signaling a halt to years of ramping up output.

Vale SA VALE5.SA said it produced 77.5 million tonnes of iron ore in the first quarter, just hitting a company record for the period but down 12 percent from the final quarter of 2015.

"Production in the first quarter and the plan for the rest of the year suggests an annual production towards the lower end of our original guidance of 340-350 million tonnes," the company said in a statement. The company produced 345.9 million tonnes in 2015.

Output of the steelmaking raw material from Vale's mines in the northern state of Para compensated, the miner said, for stalled production in the southeast due to the collapse of a tailings dam at a mine run by Samarco, a joint venture between Vale and BHP Billiton BLT.L .

Earlier on Wednesday BHP cut its 12-month iron ore production through June by 10 million tonnes to 260 million tonnes, just a day after Rio Tinto (LON:RIO) reduced its 2017 production guidance by between 10 million and 20 million tonnes.

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