Vale forecasts an iron ore production decline of 345-360mn mt in 2020.
While the company didn’t disclose the reason for the expected drop, it intends to first stabilize production, then return it to 2018 levels when it produced 385mn mt.
The news came during a presentation Vale gave of its strategy for safe growth through the next few years, in which the company also said it plans to produce 375-395mn mt in 2021, and 390-400mn mt a year later.
Despite its optimistic outlook, Vale conceded that 2019 has been a difficult year because of the Dam 1 in Brumadinho that killed 250 people. The incident has been called Brazil’s worst industrial accident.
To ensure robust management of operational risks and strategic assets, Vale created a risk governance team composed of four executive committees, which has been tasked with conducting airtight risk assessments. The company also created an executive board for safety and operation excellence that will report directly to Vale’s chief executive officer.
The Brazilian company—the world’s largest iron ore producer—said it’s focusing on forging stronger communal ties, which include setting goals that are even more ambitious than previously announced targets pertaining to climate change, energy, and forests.
For example, Vale already produces 60pc of the energy it consumes in Brazil, however, by 2030 the company will generate 100pc of the energy it consumes globally, and will reduce new water withdrawal by 10pc.