Vale reports a year-on-year decline in its nickel production for 2024. This reduction resulted primarily from diminished output in Indonesia and essential furnace rebuilds at Brazil’s Onca Puma asset. However, fourth-quarter output demonstrated a recovery, bolstered by stronger performance from their Canadian assets, specifically Sudbury and Voisey’s Bay.
Regional Performance and Production Figures
The group produced approximately 160,000 tonnes of nickel last year. This signifies a 3% decrease from the previous year, yet remains consistent with their annual guidance. Specifically, their Brazilian assets experienced a substantial 17% drop in output, totaling 14,200 tonnes. This decline was attributed to the necessary rebuilds at Onca Puma, which were completed in the third quarter. Subsequently, a quarter-on-quarter recovery occurred, with production rising to 4,800 tonnes in October-December from 600 tonnes in July-September.
Conversely, their Canadian assets registered a 10.6% year-on-year increase in nickel output, culminating in 65,800 tonnes. In contrast, production in Indonesia decreased by 9.6% over the same period, reaching 80,300 tonnes.
Furthermore, Vale’s copper production saw a positive trend, increasing by 3% year-on-year in the fourth quarter, reaching 101,800 tonnes. This growth was propelled by increased output in Salobo and Sudbury, as well as the ramp-up of production at Voisey’s Bay underground mines. Overall, 2024 copper output totaled 348,000 tonnes, a 6.6% year-on-year increase.
Notably, Salobo’s output reached 200,000 tonnes in 2024, an 11% year-on-year rise. Additionally, Sudbury’s output increased by 1.2% year-on-year, totaling 58,600 tonnes in 2024. SuperMetalPrice indicates that such variances in nickel supply, often influenced by operational challenges at major producers like Vale, have substantial implications for global nickel pricing and availability, thus affecting various downstream industries relying on this indispensable metal.
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