Vale blamed seasonally higher rainfall levels in its mines in Brazil for missing its forecast, as well as slower licensing processes in its Northern System.
Sales volumes of iron ore, a key material for making steel, fell 0.7% in the quarter, but still came in 24.2% above the previous three months, the company said.
Vale’s production of nickel fell 1.3% to 47,400 tonnes in the quarter, after scheduled maintenance stoppages at plants in Canada. Its sales volumes, however, soared 30.2% to 58,200 tonnes, as the company shifted pent-up stocks to fulfill supply contracts.
Last month, Vale predicted an 2023 nickel output below last year’s levels while iron ore production should remain flat.
The metal is also a key material for the booming electric vehicle industry, where it is used in the cathode component of batteries. Vale has struck contracts to supply nickel to major auto makers including Tesla and General Motors.
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