Vale Nickel Output Rises 11pc in Q1 After Furnace Rebuild

VALE

Strong Recovery from Onça Puma Supports Global Nickel Supply

Brazilian mining giant Vale reported an 11pc year-on-year increase in nickel production for the first quarter of 2025, reaching 43,900 metric tonnes (t). This growth comes as the company completed the furnace rebuild at its Onça Puma mine, which had hindered production during the same period last year.

Production in Brazil reached 5,400t, up from zero a year earlier. Meanwhile, Canadian operations also performed strongly, delivering 20,000t, an 18pc rise. This included a 47pc increase at Voisey’s Bay and a 51pc surge at Thompson, driven by efforts to build inventory ahead of refinery maintenance later in the year.

Planned Maintenance and Nickel Price Pressure

Vale announced up to five weeks of scheduled maintenance at Creighton mine in Q3, with additional short-term outages planned at Thompson and Long Harbour through Q4.

Despite strong output, nickel sales volumes lagged behind production at 38,900t, though still up 18pc year-on-year.

However, average nickel prices dropped 4.4pc year-on-year to $16,100/t, reflecting a weaker London Metal Exchange (LME) nickel market. As a result, revenue gains from increased volume were partially offset by lower pricing.

The Metalnomist Commentary

Vale’s output rebound underscores its operational resilience, especially as Canada strengthens its role in nickel supply. However, sustained LME price pressure may challenge margins, particularly during refinery maintenance later this year.