Brazilian mining company Vale SA sold one of its mines on Tuesday. It has announced forecasts that iron ore production will decrease in 2022 due to the supply chain restrictions in its northern system.
The company's new estimates for the second half of 2022, which were previously estimated at 320-355mt per year, have dropped to 310-320mt per year.
The main reason for the decline was Vale's sale of $1.2 million manganese and iron ore mines in central Brazil to J&F.
“Vale disappointed us in the first quarter of the year,” said Ativa Investimentos analyst Ilan Abetman, noting that Vale shares have lost value nearly 20% since the beginning of June.
Iron ore production in the second quarter of the year decreased from last year’s 75.68mt to 74.11mt. In addition, due to the supply problem in Vale's northern system, it decreased by 10.2% from last year's quantity to 39.07mt.
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